Were the Seattle legislators who said that farmers could afford to pay the state’s new CO2 tax right after all? 

A recent report from the Washington State Department of Licensing shows just 6.5 percent of funds set aside for farmers to collect a rebate on fuel taxes assessed by the Climate Commitment Act (CCA) have been accessed.

State Senator Joe Nguyen (D-Seattle) mentioned the low number of farmers applying for the rebates recently, highlighting it as evidence that the impact of the CO2 tax was small. It is, however, a bit glib to criticize the farmers and ranchers of our state for not filling out paperwork when the Washington State Department of Ecology could not manage to do its mandated duty for more than a year.

Under the law, farmers and ranchers were promised they would be exempt from paying the tax imposed on Washingtonians who, at its peak last year, paid an average of 46 cents per gallon for gas and 53 cents per gallon for diesel. The state allocated $28.5 million to a fund specifically to give farmers and ranchers some of their money back that was illegally collected by the CCA tax.

To remedy the violation of the law, budget writers offered a one-time $28.5 million solution to farmers and ranchers. However, the money will not remain available forever. Legislators were clear the funds are “use it or lose it.” The deadline to apply for the rebate is December 5 if Initiative 2117 passes. Any unclaimed funds still in the pot after that will remain with the state. If I-2117 does not pass, farmers have until June 30, 2025, or until the funds are gone.

Farmers and ranchers who bought fuel in 2023 are eligible to receive a rebate of up to $4,500, based on how much fuel they purchased. The application process is online and takes about 30 minutes to complete.

Some producers have balked at the maximum refund, suggesting $4,500 would not cover the total amount of taxes paid for their fuel. That is likely true for some of the state’s largest farms. But getting something back is better than getting nothing back and $4,500 for 30 minutes of office work is a generous wage no matter what your profession.

Using up the CCA rebate fund before the December 5 deadline shows farmers and ranchers are serious about getting their money back, that there is a real need, and the tax was harmful for farmers. Letting those funds languish in the pot and return to state coffers tells legislators who’ve insisted the ag community can afford to pay more for everything that they were right all along. 

The CCA rebate website can be found here. For more information about the rebate, head here.