PREPROPOSAL STATEMENT OF INQUIRY
Subject of Possible Rule Making: Revision of WAC 458-12-320 Timber and forest products -- Ownership -- Roads; and repeal of WAC 458-12-315 Timber and forest products -- Valuation.
Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 84.04.080 Personal property, 84.33.040 Timber on privately owned or federally owned land exempted from ad valorem taxation, 84.33.041 State excise tax on harvesters of timber imposed -- Credit for county tax -- Deposit of moneys in timber distribution account -- Earnings, and 84.33.074 Excise tax on harvesters of timber -- Calculation of tax by small harvesters -- Election -- Filing form.
Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: Timber on publicly owned land is exempt from property tax. However, when timber on publicly owned land is sold by a governmental agency, it is subject to personal property tax. The amount of personal property tax paid on this public timber is used as a credit towards any timber excise tax that is normally assessed on all timber harvested. Information now provided in WAC 458-12-315 and 458-12-320 needs to be updated and should be consolidated into a single rule. Related information now provided in PTB 97-1 (Procedure for assessment of state timber sales) should also be incorporated to provide local taxing officials and taxpayers with all the information they may need relating to public timber sales in a single document. The resulting rule will establish uniform procedures to be used in determining the taxable value of timber sold by agencies of state and local government separate from publicly owned land. It will describe the origin and use of the state timber sales adjustment table ("adjustment table" or "table"), the affect road construction costs have on the true and fair value of the timber, and the method used to determine the amount of timber remaining from a sale on each January 1st assessment date.
Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: None.
Process for Developing New Rule: Modified negotiated rule making.
Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication. Written comments may be submitted by mail, fax, or at the public meeting. Oral comments will be accepted at the public meeting. A preliminary draft of the proposed changes is available upon request. Written comments on and/or requests for copies of the rule may be directed to Kim M. Qually, Legislation and Policy, P.O. Box 47467, Olympia, WA 98504-7467, phone (360) 664-0086, fax (360) 664-0693.
Location and Date of Public Meeting: On January 6, 2000, at 9:30 a.m., Evergreen Plaza Building, Olympia, Washington.
Assistance for Persons with Disabilities: Contact Ginny Dale no later than ten days before the hearing date, TDD 1-800-451-7985, or (360) 586-0721.
November 23, 1999
Claire Hesselholt
Rules Manager
Legislation and Policy Division