PREPROPOSAL STATEMENT OF INQUIRY
Subject of Possible Rule Making: WAC 458-40-660 Timber excise tax -- Stumpage value tables -- Stumpage value adjustments, 458-40-610 Timber excise tax -- Definitions, 458-40-640 Timber excise tax -- Stumpage value area (map), 458-40-650 Timber excise tax -- Timber quality codes defined, and 458-40-680 Timber excise tax -- Volume harvested -- Approved scaling and grading methods -- Sample scaling -- Conversions.
Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 84.33.096, 82.32.300, and 82.01.060(2).
Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: RCW 84.33.091 requires the department of revenue 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 department anticipates amending WAC 458-40-660 to provide valuations for the second half of 2012.
The department's anticipated changes include consolidating stumpage value areas (SVAs), which will result in the elimination of other SVAs, and changes to some log quality codes. Other rules in chapter 458-40 WAC will need to be amended to recognize these changes. Possible changes include the following.
WAC 458-40-610 Timber excise tax -- Definitions, this rule provides definitions of terms used in other rules prescribing the policies and procedures for the taxation of timber harvested from public and private forest lands as required by RCW 84.33.010 through 84.33.096. Possible changes include updating the following definitions:
| • | Subsection (25)(e), small logs. |
| • | Subsection (25)(f), sawlog. |
| • | Subsection (30), thinning. |
WAC 458-40-650 Timber excise tax -- Timber quality codes defined.
| • | Updating Table 1 by removing SVA 10 and making "All conifer and all hardwoods" Quality Code 1 for all log grades. |
| • | Updating Table 2 by removing SVA 7 and making "All conifer and all hardwoods" Quality Code 1 for all log sizes. |
| • | Stumpage value tables - eliminate SVA 6 and 10. |
| • | Harvest adjustment tables - remove references to SVA 10 and SVA 7. |
| • | Domestic market adjustment - for SVA 1-5 only, eliminate Quality Code 2, leaving only Quality Code 1. |
Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: Although the United States Forest Service and Washington state department of natural resources both regulate forest practices, neither is involved in valuation for taxation purposes. The nontax processes and definitions are coordinated with these agencies to avoid conflict, but there is no need to involve them in the valuation revisions addressed provided in these rules.
Process for Developing New Rule: Parties interested in this rule making may contact the individual listed below. The public may also participate by providing written comments throughout this rule making or giving oral testimony at the public meeting or public hearing.
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 and should be directed to Mark E. Bohe at either of the following addresses: E-mail markbohe@dor.wa.gov, or mail Mark Bohe, ITA Division, P.O. Box 47453, Olympia, WA 98504-7453. Written and oral comments will be accepted at the public meeting.
Public meeting location: Capital Plaza Building, 4th Floor, L&P Large Conference Room, 1025 Union Avenue S.E., Olympia, WA, on April 10, 2012, at 10:00 a.m.
Assistance for persons with disabilities: Contact Mary Carol LaPalm, (360) 725-7499, or Renee Cosare, (360) 725-7514, no later than ten days before the meeting date. For hearing impaired please contact us via the Washington relay operator at (800) 833-6384.
March 5, 2012
Alan R. Lynn
Rules Coordinator