WSR 17-23-101
PROPOSED RULES
DEPARTMENT OF REVENUE
[Filed November 15, 2017, 2:07 p.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 17-18-093.
Title of Rule and Other Identifying Information: WAC 458-40-540 Timber excise tax—Forest land values and 458-40-660 Timber excise tax—Stumpage value tables—Stumpage value adjustments.
Hearing Location(s): On December 27, 2017, at 10:00 a.m., at Conference Room 114A, 6400 Linderson Way S.W., Tumwater, WA 98501.
Date of Intended Adoption: December 28, 2017.
Submit Written Comments to: Danitza M. Casselman, Department of Revenue, Interpretations and Technical Advice Division, P.O. Box 47453, Olympia, WA 98504-7453, email danitzac@dor.wa.gov, by December 27, 2017.
Assistance for Persons with Disabilities: Contact Julie King or Renee Cosare, phone 360-704-5717 or 360-725-7514, Washington relay operator at 800-833-6384.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: RCW 84.33.091 requires the department to revise the stumpage value tables every six months. The department establishes stumpage value tables to apprise timber harvesters of the timber values used to calculate the timber excise tax. The values in the proposed rule will apply beginning January 1, 2018, through June 30, 2018.
Further, RCW 84.33.140 requires that forest land values be adjusted annually by a statutory formula contained in RCW 84.33.140(3). The department anticipates amending the forest land values rule (WAC 458-40-540) to adjust the table of forest land values in Washington as required by statute. County assessors will use these published land values for property tax purposes in 2018.
Reasons Supporting Proposal: Required by statutes and values need to calculate timber excise and property taxes.
Statutory Authority for Adoption: RCW 82.32.300, 82.01.060(2), and 84.33.096.
Statute Being Implemented: RCW 84.33.091.
Rule is not necessitated by federal law, federal or state court decision.
Name of Proponent: Department of revenue, governmental.
Name of Agency Personnel Responsible for Drafting: Danitza M. Casselman, P.O. Box 47453, Olympia, WA 98504-7453, 360-534-1583; Implementation and Enforcement: Randy Simmons, P.O. Box 47453, Olympia, WA 98504-7453, 360-534-1605.
A school district fiscal impact statement is not required under RCW 28A.305.135.
A cost-benefit analysis is required under RCW 34.05.328. A preliminary cost-benefit analysis may be obtained by contacting Danitza M. Casselman, Interpretations and Technical Advice Division, P.O. Box 47453, Olympia, WA 98504-7453, phone 360-534-1583. The proposed rule is a significant legislative rule as defined by RCW 34.05.328.
The proposed rule does not impose more-than-minor costs on businesses. Following is a summary of the agency's analysis showing how costs were calculated. A small business economic statement has not been prepared as the proposed rules do not impose more than a minor cost on small businesses. Only large businesses are statutorily required to utilize the values contained in the rules, while small businesses have other statutory authority for their tax reporting obligations.
November 15, 2017
Erin Lopez
Rules Coordinator
AMENDATORY SECTION (Amending WSR 17-02-003, filed 12/22/16, effective 1/1/17)
WAC 458-40-540 Forest land values—((2017)) 2018.
The forest land values, per acre, for each grade of forest land for the ((2017)) 2018 assessment year are determined to be as follows:
LAND
GRADE
OPERABILITY
CLASS
((2017)) 2018
VALUES PER ACRE
1
1
2
3
4
$((209)) 208
((207)) 206
((193)) 192
141
2
1
2
3
4
177
171
164
116
3
1
2
3
4
137
133
132
102
4
1
2
3
4
106
103
102
77
5
1
2
3
4
77
68
67
47
6
1
2
3
4
39
37
37
35
7
1
2
3
4
17
17
16
16
8
1
1
AMENDATORY SECTION (Amending WSR 17-14-020, filed 6/23/17, effective 7/1/17)
WAC 458-40-660 Timber excise tax—Stumpage value tables—Stumpage value adjustments.
(1) Introduction. This rule provides stumpage value tables and stumpage value adjustments used to calculate the amount of a harvester's timber excise tax.
(2) Stumpage value tables. The following stumpage value tables are used to calculate the taxable value of stumpage harvested from ((July 1 through December 31, 2017)) January 1, 2018 through June 30, 2018:
Washington State Department of Revenue
STUMPAGE VALUE TABLE
((July)) January 1 through ((December 31, 2017)) June 30, 2018
Stumpage Values per Thousand Board Feet Net Scribner Log Scale(1)
Starting July 1, 2012, there are no separate
Quality Codes per Species Code.
Species
Name
Species Code
SVA (Stumpage Value Area)
Haul Zone
1
2
3
4
5
((Douglas-fir(2)
DF
1
$357
$350
$343
$336
$329
 
2
460
453
446
439
432
 
3
454
447
440
433
426
 
4
497
490
483
476
469
 
5
458
451
444
437
430
 
6
277
270
263
256
249
Western Hemlock and
Other Conifer(3)
WH
1
241
234
227
220
213
 
2
330
323
316
309
302
 
3
264
257
250
243
236
 
4
318
311
304
297
290
 
5
301
294
287
280
273
 
6
249
242
235
228
221
Western Redcedar(4)
RC
1-5
1082
1075
1068
1061
1054
 
6
1110
1103
1096
1089
1082
Ponderosa Pine(5)
PP
1-6
191
184
177
170
163
Red Alder
RA
1-5
483
476
469
462
455
Black Cottonwood
BC
1-5
100
93
86
79
72
Other Hardwood
OH
1-5
284
277
270
263
256
 
6
23
16
9
2
1
Douglas-fir Poles & Piles
DFL
1-5
706
699
692
685
678
Western Redcedar Poles
RCL
1-5
1514
1507
1500
1493
1486
 
6
1377
1370
1363
1356
1349
Chipwood(6)
CHW
1-5
11
10
9
8
7
 
6
1
1
1
1
1
Small Logs(6)
SML
6
29
28
27
26
25
RC Shake & Shingle Blocks(7)
RCS
1-6
289
282
275
268
261
Posts(8)
LPP
1-6
0.35
0.35
0.35
0.35
0.35
DF Christmas Trees(9)
DFX
1-6
0.25
0.25
0.25
0.25
0.25
Other Christmas Trees(9)
TFX
1-6
0.50
0.50
0.50
0.50
0.50))
Douglas-fir(2)
DF
1
$448
$441
$434
$427
$420
 
2
481
474
467
460
453
 
3
478
471
464
457
450
 
4
533
526
519
512
505
 
5
473
466
459
452
445
 
6
283
276
269
262
255
Western Hemlock and
Other Conifer(3)
WH
1
296
289
282
275
268
 
2
374
367
360
353
346
 
3
362
355
348
341
334
 
4
358
351
344
337
330
 
5
331
324
317
310
303
 
6
256
249
242
235
228
Western Redcedar(4)
RC
1-5
1161
1154
1147
1140
1133
 
6
1229
1222
1215
1208
1201
Ponderosa Pine(5)
PP
1-6
196
189
182
175
168
Red Alder
RA
1-5
547
540
533
526
519
Black Cottonwood
BC
1-5
117
110
103
96
89
Other Hardwood
OH
1-5
326
319
312
305
298
 
6
23
16
9
2
1
Douglas-fir Poles & Piles
DFL
1-5
741
734
727
720
713
Western Redcedar Poles
RCL
1-5
1499
1492
1485
1478
1471
 
6
1449
1442
1435
1428
1421
Chipwood(6)
CHW
1-5
9
8
7
6
5
 
6
1
1
1
1
1
Small Logs(6)
SML
6
29
28
27
26
25
RC Shake & Shingle Blocks(7)
RCS
1-6
299
292
285
278
271
Posts(8)
LPP
1-6
0.35
0.35
0.35
0.35
0.35
DF Christmas Trees(9)
DFX
1-6
0.25
0.25
0.25
0.25
0.25
Other Christmas Trees(9)
TFX
1-6
0.50
0.50
0.50
0.50
0.50
(1)
Log scale conversions Western and Eastern Washington. See conversion methods WAC 458-40-680.
(2)
Includes Western Larch.
(3)
Includes all Hemlock, Spruce and true Fir species, Lodgepole Pine in SVA 6, or any other conifer not listed on this page.
(4)
Includes Alaska-Cedar.
(5)
Includes Western White Pine in SVA 6, and all Pines in SVA 1-5.
(6)
Stumpage value per ton.
(7)
Stumpage value per cord.
(8)
Includes Lodgepole posts and other posts, Stumpage Value per 8 lineal feet or portion thereof.
(9)
Stumpage Value per lineal foot.
(3) Harvest value adjustments. The stumpage values in subsection (2) of this rule for the designated stumpage value areas are adjusted for various logging and harvest conditions, subject to the following:
(a) No harvest adjustment is allowed for special forest products, chipwood, or small logs.
(b) Conifer and hardwood stumpage value rates cannot be adjusted below one dollar per MBF.
(c) Except for the timber yarded by helicopter, a single logging condition adjustment applies to the entire harvest unit. The taxpayer must use the logging condition adjustment class that applies to a majority (more than 50%) of the acreage in that harvest unit. If the harvest unit is reported over more than one quarter, all quarterly returns for that harvest unit must report the same logging condition adjustment. The helicopter adjustment applies only to the timber volume from the harvest unit that is yarded from stump to landing by helicopter.
(d) The volume per acre adjustment is a single adjustment class for all quarterly returns reporting a harvest unit. A harvest unit is established by the harvester prior to harvesting. The volume per acre is determined by taking the volume logged from the unit excluding the volume reported as chipwood or small logs and dividing by the total acres logged. Total acres logged does not include leave tree areas (RMZ, UMZ, forested wetlands, etc.,) over 2 acres in size.
(e) A domestic market adjustment applies to timber which meet the following criteria:
(i) Public timber - Harvest of timber not sold by a competitive bidding process that is prohibited under the authority of state or federal law from foreign export may be eligible for the domestic market adjustment. The adjustment may be applied only to those species of timber that must be processed domestically. According to type of sale, the adjustment may be applied to the following species:
Federal Timber Sales: All species except Alaska-cedar. (Stat. Ref. - 36 C.F.R. 223.10)
State, and Other Nonfederal, Public Timber Sales: Western Redcedar only. (Stat. Ref. - 50 U.S.C. appendix 2406.1)
(ii) Private timber - Harvest of private timber that is legally restricted from foreign export, under the authority of The Forest Resources Conservation and Shortage Relief Act (Public Law 101-382), (16 U.S.C. Sec. 620 et seq.); the Export Administration Act of 1979 (50 U.S.C. App. 2406(i)); a Cooperative Sustained Yield Unit Agreement made pursuant to the act of March 29, 1944 (16 U.S.C. Sec. 583-583i); or Washington Administrative Code (WAC 240-15-015(2)) is also eligible for the Domestic Market Adjustment.
The following harvest adjustment tables apply from ((July)) January 1 through ((December 31, 2017)) June 30, 2018:
TABLE 9—Harvest Adjustment Table
Stumpage Value Areas 1, 2, 3, 4, and 5
((July)) January 1 through ((December 31, 2017)) June 30, 2018
Type of
Adjustment
Definition
Dollar Adjustment Per
Thousand Board Feet
Net Scribner Scale
I. Volume per acre
Class 1
 
Harvest of 30 thousand board feet or more per acre.
$0.00
Class 2
 
Harvest of 10 thousand board feet to but not including 30 thousand board feet per acre.
-$15.00
Class 3
 
Harvest of less than 10 thousand board feet per acre.
-$35.00
II. Logging conditions
Class 1
 
Ground based logging a majority of the unit using tracked or wheeled vehicles or draft animals.
$0.00
Class 2
 
Cable logging a majority of the unit using an overhead system of winch driven cables.
-$85.00
Class 3
 
Applies to logs yarded from stump to landing by helicopter. This does not apply to special forest products.
-$145.00
III. Remote island adjustment:
 
 
For timber harvested from a remote island
-$50.00
IV. Thinning
Class 1
 
A limited removal of timber described in WAC 458-40-610 (28)
-$100.00
TABLE 10—Harvest Adjustment Table
Stumpage Value Area 6
((July)) January 1 through ((December 31, 2017)) June 30, 2018
Type of
Adjustment
Definition
Dollar Adjustment Per
Thousand Board Feet
Net Scribner Scale
I. Volume per acre
Class 1
 
Harvest of more than 8 thousand board feet per acre.
$0.00
Class 2
 
Harvest of 8 thousand board feet per acre and less.
-$8.00
II. Logging conditions
Class 1
 
The majority of the harvest unit has less than 40% slope. No significant rock outcrops or swamp barriers.
$0.00
Class 2
 
The majority of the harvest unit has slopes between 40% and 60%. Some rock outcrops or swamp barriers.
-$50.00
Class 3
 
The majority of the harvest unit has rough, broken ground with slopes over 60%. Numerous rock outcrops and bluffs.
-$75.00
Class 4
 
Applies to logs yarded from stump to landing by helicopter. This does not apply to special forest products.
-$145.00
Note:
A Class 2 adjustment may be used for slopes less than 40% when cable logging is required by a duly promulgated forest practice regulation. Written documentation of this requirement must be provided by the taxpayer to the department of revenue.
III. Remote island adjustment:
 
 
For timber harvested from a remote island
-$50.00
TABLE 11—Domestic Market Adjustment
Class
 
Area Adjustment Applies
Dollar Adjustment Per Thousand Board Feet Net Scribner Scale
 
 
SVAs 1 through 5 only:
$0.00
Note:
This adjustment only applies to published MBF sawlog values.
(4) Damaged timber. Timber harvesters planning to remove timber from areas having damaged timber may apply to the department of revenue for an adjustment in stumpage values. The application must contain a map with the legal descriptions of the area, an accurate estimate of the volume of damaged timber to be removed, a description of the damage sustained by the timber with an evaluation of the extent to which the stumpage values have been materially reduced from the values shown in the applicable tables, and a list of estimated additional costs to be incurred resulting from the removal of the damaged timber. The application must be received and approved by the department of revenue before the harvest commences. Upon receipt of an application, the department of revenue will determine the amount of adjustment to be applied against the stumpage values. Timber that has been damaged due to sudden and unforeseen causes may qualify.
(a) Sudden and unforeseen causes of damage that qualify for consideration of an adjustment include:
(i) Causes listed in RCW 84.33.091; fire, blow down, ice storm, flood.
(ii) Others not listed; volcanic activity, earthquake.
(b) Causes that do not qualify for adjustment include:
(i) Animal damage, root rot, mistletoe, prior logging, insect damage, normal decay from fungi, and pathogen caused diseases; and
(ii) Any damage that can be accounted for in the accepted normal scaling rules through volume or grade reductions.
(c) The department of revenue will not grant adjustments for applications involving timber that has already been harvested but will consider any remaining undisturbed damaged timber scheduled for removal if it is properly identified.
(d) The department of revenue will notify the harvester in writing of approval or denial. Instructions will be included for taking any adjustment amounts approved.
(5) Forest-derived biomass, has a $0/ton stumpage value.