WSR 02-08-068

PREPROPOSAL STATEMENT OF INQUIRY

DEPARTMENT OF REVENUE


[ Filed April 2, 2002, 10:50 a.m. ]

Subject of Possible Rule Making: WAC 458-40-610 Timber excise tax -- Definitions.

Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 82.32.300 and 84.33.096.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: Because of changes in law, more public roads are being abandoned. The contracts to purchase public timber include provisions requiring the purchaser to abandon roads both on and off the area being harvested. The Department of Revenue is considering clarifying when the road abandonment is performed as a service to the government and not as part of the harvesting activities. When a landowner requires timber purchasers to perform services for them in lieu of cash payment, this value must be reflected as other consideration paid for the timber. We anticipate a rule change so purchasers can identify when abandoning roads on public land are not part of the harvesting activities.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: The United States Forest Service and Washington State Department of Natural Resources both regulate forest practices, but they are not involved in valuation for purposes of taxation. The definition has been coordinated with published rules on forest practices and definitions issued by these agencies to avoid conflict. We have invited their input, but the amended definition should not impact their regulation of forest practices or the harvester's ability to comply with these agencies regulations.

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 possible changes is available upon request. Written comments on and/or requests for copies of the rule may be directed to Ed Ratcliffe, Legislation and Policy, P.O. Box 47467, Olympia, WA 98504-7467, phone (360) 570-6126, e-mail EdR@dor.wa.gov, fax (360) 664-0693.

Location and Date of Public Meeting: Department of Revenue, Conference Room, Target Place Building No. 4, 2735 Harrison Avenue N.W., Olympia, WA, on May 9, 2002, at 10 a.m.

Assistance for Persons with Disabilities: Contact Sandy Davis no later than ten days before the hearing date, TTY 1-800-451-7985, or (360) 570-6175.

April 2, 2002

Claire Hesselholt, Rules Manager

Legislation and Policy Division

Washington State Code Reviser's Office