PROPOSED RULES
Original Notice.
Preproposal statement of inquiry was filed as WSR 12-06-056.
Title of Rule and Other Identifying Information: WAC 458-40-680 Timber excise tax -- Volume harvested -- Approved scaling and grading methods -- Sample scaling -- Conversions.
Hearing Location(s): Capital Plaza Building, 4th Floor, L&P Large Conference Room, 1025 Union Avenue S.E., Olympia, WA 98501, on June 5, 2012, at 10:00 a.m. Copies of draft rules are available for viewing and printing on our web site at Rules Agenda.
Date of Intended Adoption: June 26, 2012.
Submit Written Comments to: Mark Bohe, e-mail markbohe@dor.wa.gov, P.O. Box 47453, Olympia, WA 98504-7453, by June 5, 2012.
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 hearing date. For hearing impaired please contact us via the 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 WAC 458-40-660 will apply to the second half of 2012. This time there is also a separate change to WAC 458-40-680 Timber excise tax -- Volume harvested -- Approved scaling and grading methods -- Sample scaling -- Conversions. The change is to remove all references to SVA 7 and SVA 10; and to update the multiple quality codes used in weight measure conversions in WAC 458-40-680 (4)(a).
Reasons Supporting Proposal: RCW 84.33.091 requires that the stumpage values provided in WAC 458-40-660 be updated as of January 1 and July 1 of each year. WAC 458-40-680, an associated section, is being updated to reflect changes affecting stumpage values.
Statutory Authority for Adoption: RCW 82.32.300, 82.01.060(2), and 84.33.096.
Statute Being Implemented: RCW 84.33.091 and 84.33.140.
Rule is not necessitated by federal law, federal or state court decision.
Name of Proponent: Washington state department of revenue, governmental.
Name of Agency Personnel Responsible for Drafting: Mark E. Bohe, 1025 Union Avenue S.E., Suite #544, Olympia, WA, (360) 534-1574; Implementation and Enforcement: Stuart Thronson, 1025 Union Avenue S.E., Suite #100, Olympia, WA, (360) 534-1300.
No small business economic impact statement has been prepared under chapter 19.85 RCW. No small business economic impact statement is required for either rule.
A cost-benefit analysis is required under RCW 34.05.328. A preliminary cost-benefit analysis may be obtained by contacting Mark Bohe, Interpretations and Technical Advice Division, P.O. Box 47453, Olympia, WA 98504-7453, phone (360) 534-1574, e-mail markbohe@dor.wa.gov.
May 2, 2012
Alan R. Lynn
Rules Coordinator
OTS-4731.2
AMENDATORY SECTION(Amending WSR 06-02-007, filed 12/22/05,
effective 1/22/06)
WAC 458-40-680
Timber excise tax -- Volume
harvested -- Approved scaling and grading methods -- Sample
scaling -- Conversions.
(1) Introduction. The acceptable log
scaling and grading standard for stumpage value areas 1, 2, 3,
4, and 5((, and 10)) is the Scribner Decimal C log rule as
described in the most current edition of the "Official Log
Scaling and Grading Rules" developed and authored by the
Northwest Log Rules Advisory Group. The acceptable log
scaling standard for stumpage value area((s)) 6 ((and 7)) is
the Scribner Decimal C log rule described in the most current
edition of the "Eastside Log Scaling Handbook" as published by
the Northwest Log Rules Advisory Group, except that timber
harvested in stumpage value area((s)) 6 ((and 7)) must be
scaled using the current regional taper rules at the point of
origin.
(2) Special services scaling. Special services scaling as described in the "Official Log Scaling and Grading Rules" developed and authored by the Northwest Log Rules Advisory Group may not be used for tax reporting purposes without prior written approval of the department of revenue.
(3) Sample scaling. Sample scaling may not be used for tax reporting purposes without prior written approval of the department of revenue. To be approved, sample scaling must be in accordance with the following guidelines:
(a) Sample selection, scaling, and grading must be conducted on a continuous basis as the unit is harvested.
(b) The sample must be taken in such a manner to assure random, unbiased sample selection in accordance with accepted statistical tests of sampling.
(c) The sample used to determine total volume, species, and quality of timber harvested for a given reporting period must have been taken during that period.
(d) Sample frequency must be large enough to meet board foot variation accuracy limits of plus or minus two and five-tenths percent standard error at the ninety-five percent confidence level.
(e) Harvesters, or a purchaser with an approved sample scaling method, must maintain sufficient supporting documentation to allow the department of revenue to verify source data, and test statistical reliability of sample scale systems.
(f) Exceptions: Sampling designs and accuracy standards other than those described herein may only be used with the prior written approval of the department of revenue.
(4) Conversions to Scribner Decimal C Scale. The following definitions, tables, and conversion factors must be used in determining taxable volume for timber harvested that was not originally scaled by the Scribner Decimal C Log Rule. Conversion methods other than those listed are not to be used for tax reporting purposes without prior written approval of the department of revenue. Harvesters who wish to use a method of conversion other than those listed below must obtain written approval from the department of revenue before harvesting. Purchasers may obtain written approval of a sample scaling method from the department of revenue. The department will maintain a list of purchasers with an approved sample scaling method. A harvester may obtain this list and a summary of the approved method for specific purchasers from the department of revenue. If a harvester has not obtained approval of a sample scaling method before harvesting, the harvester may use a purchaser's approved sample scaling method. If the harvester, or purchaser, fails to use an approved sample scaling method or other method of conversion approved by these rules to set the purchase price, the department will establish its own method, as the circumstances require, to determine a reasonable estimate of the volume of timber sold.
(a) Weight measurement. If the sole unit of measure used
to set the purchase price for logs from harvest units ((that
meet the definition of the lowest quality code for each
species)) was weight, and the harvester does not use an
approved method of sample scaling to determine volume for the
stumpage value tables, the following tables must be used for
converting to Scribner Decimal C, if the harvest volume per
species meets the definition listed in the table. If weight
is the sole measure used for a harvest unit ((with quality
codes other than the lowest)) and the harvest volume per
species does not meet the definition listed in the table
below, the department will establish its own method, as the
circumstances require, to determine a reasonable estimate of
the volume of timber sold. Harvesters must keep records to
substantiate the species and quality codes reported. For tax
reporting purposes, a ton equals 2,000 pounds.
(Stumpage Value Areas 1, 2, 3, 4, & 5(( BOARD FOOT WEIGHT SCALE FACTORS (TONS/MBF) |
||||
Species | Quality code | |||
1 | (( |
|||
Douglas-fir1 | (( |
(( |
||
Western Hemlock2 | (( |
(( |
||
Western Redcedar3 | 7.0 | |||
Red Alder4 | (( |
(( |
||
Chipwood | 9.0 |
1 | Includes Douglas-fir, Western Larch, Western White Pine and Sitka Spruce. Only for volume including less than 25% No. 2 sawmill or better log grades. |
2 | Includes Western Hemlock, Mountain Hemlock, Pacific Silver Fir, Noble Fir, Grand Fir, Subalpine Fir, Lodgepole Pine and other conifers not separately designated. Pacific Silver Fir, Noble Fir, Grand Fir, and Subalpine Fir are all commonly referred to as "White Fir." Only for volume including less than 25% No. 2 sawmill or better log grades. |
3 | Includes Alaska-cedar. |
4 | Maple, Black Cottonwood and other hardwoods. Only for volume including less than 40% No. 3 sawmill or better log grades. |
(Stumpage Value Area(( BOARD FOOT WEIGHT SCALE FACTORS (TONS/MBF) |
||
Species | Quality code | |
1 | (( |
|
Ponderosa Pine1 | (( |
(( |
Douglas-fir(( |
5.50 | |
Lodgepole Pine | 6.0 | |
Western Hemlock(( |
5.50 | |
Englemann Spruce | 4.50 | |
Western Redcedar(( |
4.50 | |
Chipwood | 9.0 | |
Small Logs | 6.50 |
1 | Only for volume with 10 or more logs 16 feet long per thousand board feet Scribner scale. |
2 | Includes Western Larch. |
(( |
Includes Western Hemlock, Mountain Hemlock, Pacific Silver Fir, Noble Fir, Grand Fir, Subalpine Fir, and other conifers not separately designated. Pacific Silver Fir, Noble Fir, Grand Fir, and Subalpine Fir are all commonly referred to as "White Fir." |
(( |
Includes Alaska-cedar. |
(i) In stumpage value areas 1, 2, 3, 4, and 5((, and 10))
logs with an average scaling diameter of 8 inches and larger
must be converted to Scribner volume using 400 board feet per
cord. Logs having an average scaling diameter of less than 8
inches must be converted to Scribner volume using 330 board
feet per cord.
(ii) In stumpage value area((s)) 6 ((and 7)) logs with an
average scaling diameter of 8 inches and larger must be
converted to Scribner volume using 470 board feet per cord. Logs having an average scaling diameter of less than 8 inches
must be converted to Scribner volume using 390 board feet per
cord.
(iii) A cord of Western Redcedar shake or shingle blocks must be converted to Scribner volume using 600 board feet per cord.
(iv) Firewood must be converted at a rate of 3 tons per cord.
(c) Cants or lumber from portable mills. To convert from lumber tally to Scribner volume:
(i) In stumpage value areas 1, 2, 3, 4, and 5((, and 10))
multiply the lumber tally for the individual species by 75%,
and round to the nearest one thousand board feet (MBF); or
(ii) In stumpage value area((s)) 6 ((and 7)) multiply the
lumber tally for the individual species by 88%, and round to
the nearest one thousand board feet (MBF).
(d) Log scale conversion. Timber harvested in stumpage
value areas 1, 2, 3, 4, and 5((, and 10)) and which has been
scaled by methods and procedures published in the "Eastside
Log Scaling Handbook" must have the volumes reported reduced
by eighteen percent. Timber harvested in stumpage value
area((s)) 6 ((and 7)) and which has been scaled by methods and
procedures published in the "Official Log Scaling and Grading
Rules" developed and authored by the Northwest log rules
advisory group, must have the volumes reported increased by
eighteen percent.
(e) Timber pole and piling volume tables. Harvesters of
poles must use the following tables to determine the Scribner
board foot volume for each pole length and class:
Total Scribner Board Foot Volume Stumpage Value Areas 1, 2, 3, 4, and 5(( |
|||||||||||||||||
Pole Class1 | Piling Class2 | ||||||||||||||||
Length | H6 | H5 | H4 | H3 | H2 | H1 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 9 | 10 | A | B |
20 | 50 | 50 | 40 | 40 | 30 | 30 | 20 | 20 | 20 | 80 | 70 | ||||||
25 | 60 | 60 | 50 | 50 | 40 | 40 | 30 | 30 | 30 | 100 | 90 | ||||||
30 | 110 | 70 | 60 | 60 | 50 | 50 | 40 | 40 | 130 | 110 | |||||||
35 | 160 | 160 | 130 | 100 | 80 | 80 | 60 | 60 | 50 | 130 | 110 | ||||||
40 | 240 | 200 | 180 | 180 | 150 | 120 | 120 | 90 | 70 | 60 | 150 | 120 | |||||
45 | 380 | 340 | 340 | 280 | 230 | 230 | 190 | 150 | 120 | 120 | 90 | 90 | 150 | 120 | |||
50 | 430 | 370 | 370 | 300 | 260 | 260 | 210 | 160 | 140 | 140 | 100 | 160 | 140 | ||||
55 | 470 | 410 | 410 | 330 | 280 | 280 | 230 | 180 | 150 | 150 | 180 | 150 | |||||
60 | 540 | 470 | 470 | 410 | 340 | 340 | 290 | 220 | 190 | 190 | 190 | 160 | |||||
65 | 610 | 520 | 520 | 420 | 380 | 380 | 320 | 260 | 210 | 210 | 210 | 180 | |||||
70 | 650 | 560 | 560 | 480 | 400 | 400 | 350 | 270 | 230 | 230 | 230 | 190 | |||||
75 | 700 | 600 | 600 | 520 | 520 | 520 | 440 | 290 | 250 | 230 | 200 | ||||||
80 | 820 | 700 | 700 | 600 | 600 | 540 | 440 | 360 | 290 | 250 | 210 | ||||||
85 | 910 | 800 | 800 | 660 | 660 | 660 | 570 | 490 | 360 | 260 | 210 | ||||||
90 | 1080 | 930 | 930 | 820 | 820 | 690 | 590 | 490 | 400 | 260 | 220 | ||||||
95 | 1170 | 1000 | 1000 | 870 | 870 | 750 | 640 | 540 | 290 | 240 | |||||||
100 | 1190 | 1030 | 1030 | 900 | 900 | 760 | 660 | 550 | 310 | 250 | |||||||
105 | 1310 | 1160 | 1160 | 1000 | 1000 | 860 | 740 | 610 | 330 | 270 | |||||||
110 | 1370 | 1220 | 1220 | 1050 | 1050 | 910 | 780 | 650 | 380 | 300 | |||||||
115 | 1440 | 1280 | 1280 | 1100 | 1100 | 960 | 860 | 680 | 400 | 310 | |||||||
120 | 1660 | 1460 | 1460 | 1300 | 1300 | 1140 | 970 | 820 | 500 | 400 | |||||||
125 | 1840 | 1600 | 1600 | 1410 | 1410 | 1250 | 1080 | 930 | |||||||||
130 | 1920 | 1680 | 1680 | 1490 | 1490 | 1310 | 1120 | 970 |
1 | Pole class definitions taken from American National Standard specifications and dimensions for wood poles as approved August 7, 1976, under American National Standard Institute, Inc. codified ANSI 05.1-1972. |
2 | Piling class definitions as per American Society for Testing and Materials for "round timber piles." As the designation: D 25-58 (reapproved 1964). |
Total Scribner Board Foot Volume Stumpage Value Area(( |
|||||||||||||||||
Pole Class1 | Piling Class2 | ||||||||||||||||
Length | H6 | H5 | H4 | H3 | H2 | H1 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 9 | 10 | A | B |
20 | 70 | 60 | 50 | 50 | 30 | 30 | 20 | 20 | 20 | 90 | 70 | ||||||
25 | 80 | 70 | 50 | 50 | 40 | 40 | 30 | 30 | 20 | 100 | 80 | ||||||
30 | 110 | 90 | 60 | 60 | 50 | 50 | 50 | 40 | 130 | 110 | |||||||
35 | 190 | 160 | 140 | 100 | 100 | 70 | 60 | 60 | 50 | 140 | 100 | ||||||
40 | 240 | 240 | 200 | 170 | 120 | 110 | 100 | 70 | 70 | 140 | 100 | ||||||
45 | 390 | 330 | 330 | 270 | 270 | 220 | 180 | 150 | 110 | 110 | 80 | 70 | 150 | 110 | |||
50 | 460 | 390 | 390 | 340 | 340 | 280 | 240 | 190 | 150 | 150 | 120 | 190 | 150 | ||||
55 | 510 | 430 | 430 | 370 | 360 | 300 | 250 | 190 | 150 | 150 | 190 | 150 | |||||
60 | 610 | 530 | 530 | 440 | 440 | 380 | 310 | 240 | 200 | 200 | 240 | 200 | |||||
65 | 650 | 570 | 570 | 490 | 480 | 410 | 350 | 280 | 220 | 220 | 240 | 200 | |||||
70 | 750 | 650 | 650 | 550 | 470 | 470 | 410 | 320 | 260 | 260 | 260 | 210 | |||||
75 | 810 | 700 | 700 | 600 | 600 | 500 | 440 | 340 | 270 | 270 | 220 | ||||||
80 | 960 | 830 | 830 | 710 | 710 | 610 | 510 | 420 | 340 | 220 | 220 | ||||||
85 | 1020 | 870 | 870 | 760 | 760 | 640 | 550 | 450 | 360 | 300 | 240 | ||||||
90 | 1110 | 970 | 970 | 840 | 840 | 720 | 620 | 500 | 420 | 280 | 280 | ||||||
95 | 1160 | 1010 | 1010 | 870 | 870 | 740 | 640 | 510 | 360 | 280 | |||||||
100 | 1380 | 1210 | 1210 | 1060 | 1060 | 910 | 780 | 650 | 360 | 280 | |||||||
105 | 1430 | 1250 | 1250 | 1100 | 1100 | 940 | 820 | 690 | 400 | 300 | |||||||
110 | 1580 | 1390 | 1390 | 1220 | 1220 | 1070 | 920 | 770 | 460 | 340 | |||||||
115 | 1660 | 1470 | 1470 | 1280 | 1280 | 970 | 810 | 680 | 470 | 360 | |||||||
120 | 1880 | 1680 | 1680 | 1480 | 1480 | 1290 | 1130 | 950 | 560 | 450 | |||||||
125 | 1910 | 1690 | 1690 | 1490 | 1490 | 1140 | 970 | 810 | |||||||||
130 | 2170 | 1920 | 1920 | 1710 | 1710 | 1510 | 1320 | 1140 |
1 | Pole class definitions taken from American National Standard specifications and dimensions for wood poles as approved August 7, 1976, under American National Standard Institute, Inc. codified ANSI 05.1-1972. |
2 | Piling class definitions as per American Society for Testing and Materials for "round timber piles." As the designation: D 25-58 (reapproved 1964). |
[Statutory Authority: RCW 82.32.300, 82.01.060(2), and 84.33.096. 06-02-007, § 458-40-680, filed 12/22/05, effective 1/22/06; 05-08-070, § 458-40-680, filed 3/31/05, effective 5/1/05; 03-22-099, § 458-40-680, filed 11/5/03, effective 12/6/03. Statutory Authority: RCW 82.32.300 and 84.33.096. 00-24-068, § 458-40-680, filed 12/1/00, effective 1/1/01. Statutory Authority: RCW 82.32.330, 84.33.096 and 84.33.120. 96-02-056, § 458-40-680, filed 12/29/95, effective 1/29/96. Statutory Authority: RCW 82.32.300 and 84.33.096. 95-14-084, § 458-40-680, filed 6/30/95, effective 7/31/95. Statutory Authority: Chapter 84.33 RCW. 87-02-023 (Order 86-4), § 458-40-680, filed 12/31/86.]