Washington farmers will have two ways to continue buying supplies and equipment tax-free under a new permit system that takes effect Jan. 1, according to the state Department of Revenue.

Farmers who register with the department will receive a new reseller permit to make purchases of items such as feed, seed, seedlings, fertilizer and pesticides without paying the state sales tax. The reseller permit replaces resale certificates that businesses use to purchase items without paying sales tax.

Farmers not registered with the department can use the "Farmers' Certificate for Wholesale Purchases and Sales Tax Exemptions," which they must fill out and give a copy to the seller. The certificate lists the supplies and equipment that qualify for the sales tax exemption.

The certificate is available at dor.wa.gov under "Get a form or publication" or at any local department office.

Mike Gowrylow, spokesman for the department, said the state Legislature created the new system in an effort to capture an estimated $100 million in state and local sales tax lost annually to businesses that buy products and services that are not resold.

An example would be a business owner who buys a big-screen TV for personal use but claims that it's for resale.

Farmers already registered with the revenue department will automatically be mailed a free reseller permit. Farmers who are not sent permits may apply for them.

Gowrylow said that whichever form a farmer uses, records must be kept for 5 years so the department can verify that the purchases qualify.

More information about qualifying tax-exempt purchases for farmers is at http://dor.wa.gov/resellerpermit or by calling 1-800-647-7706.

-- Cookson Beecher