WSR 13-02-034

PERMANENT RULES

DEPARTMENT OF REVENUE


[ Filed December 21, 2012, 9:16 a.m. , effective January 1, 2013 ]


     Effective Date of Rule: January 1, 2013.

     Other Findings Required by Other Provisions of Law as Precondition to Adoption or Effectiveness of Rule: The forest land value rule is required by statute (RCW 84.33.140) to be effective on January 1, 2013. The stumpage value rule is also required by statute (RCW 84.33.091) to be effective on January 1, 2013.

     Purpose: WAC 458-40-540 contains the forest land values, which must be adjusted annually by a statutory formula contained in RCW 84.33.140(3). This rule has been amended to provide county assessors with forest land values for the 2013 assessment year.

     WAC 458-40-660 contains the stumpage values used by harvesters of timber to calculate the timber excise tax. This rule is being revised to provide the stumpage values to be used during the first half of 2013.

     Citation of Existing Rules Affected by this Order: Amending WAC 458-40-540 Forest land values and 458-40-660 Timber excise tax -- Stumpage value tables -- Stumpage value adjustments.

     Statutory Authority for Adoption: RCW 82.01.060(2), 82.32.300, and 84.33.096.

     Other Authority: RCW 84.33.091.

      Adopted under notice filed as WSR 12-22-061 on November 6, 2012.

     A final cost-benefit analysis is available by contacting Mark E. Bohe, P.O. Box 47453, Olympia, WA 98504-7453, phone (360) 534-1574, fax (360) 534-1606, e-mail markbohe@dor.wa.gov.

     Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 2, Repealed 0.

     Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0;      Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.

     Date Adopted: December 21, 2012.

Alan R. Lynn

Rules Coordinator

OTS-5118.1


AMENDATORY SECTION(Amending WSR 12-02-040, filed 12/29/11, effective 1/1/12)

WAC 458-40-540   Forest land values -- ((2012)) 2013.   The forest land values, per acre, for each grade of forest land for the ((2012)) 2013 assessment year are determined to be as follows:

LAND

GRADE

 OPERABILITY

CLASS

 ((2012)) 2013

VALUES ((ROUNDED)) PER ACRE


1

 1

2

3

4

 $((195)) 191

((193)) 189

((181)) 177

((131)) 128


2

 1

2

3

4

 ((164)) 161

((159)) 156

((152)) 149

((109)) 107


3

 1

2

3

4

 ((128)) 125

((124)) 121

((123)) 120

((95)) 93


4

 1

2

3

4

 ((99)) 97

((96)) 94

((95)) 93

((72)) 70


5

 1

2

3

4

 ((71)) 70

((64)) 63

((63)) 62

((44)) 43


6

 1

2

3

4

 ((36)) 35

((34)) 33

((34)) 33

((32)) 31


7

 1

2

3

4

 16

16

15

15
8 1 1

[Statutory Authority: RCW 82.01.060(2), 82.32.300, 84.33.096, 84.33.091 and 84.33.140. 12-02-040, § 458-40-540, filed 12/29/11, effective 1/1/12. Statutory Authority: RCW 82.01.060(2), 82.32.300, 84.33.096, and 84.33.091. 11-02-019, § 458-40-540, filed 12/29/10, effective 1/1/11; 10-02-031, § 458-40-540, filed 12/29/09, effective 1/1/10; 09-02-044, § 458-40-540, filed 12/31/08, effective 1/1/09; 08-02-063, § 458-40-540, filed 12/28/07, effective 1/1/08; 07-02-038, § 458-40-540, filed 12/26/06, effective 1/1/07. Statutory Authority: RCW 82.01.060(2), 82.32.300, 84.33.096, and 84.33.140. 06-02-006, § 458-40-540, filed 12/22/05, effective 1/1/06; 05-02-037, § 458-40-540, filed 12/30/04, effective 1/1/05. Statutory Authority: RCW 82.32.300 and 84.33.140. 04-02-018, § 458-40-540, filed 12/30/03, effective 1/1/04. Statutory Authority: RCW 82.01.060(2), 82.32.300, 84.33.096, 84.33.091, and 84.33.140. 03-02-004, § 458-40-540, filed 12/19/02, effective 1/1/03. Statutory Authority: RCW 82.32.300, 84.33.096, 84.33.091 and 84.33.120. 02-02-033, § 458-40-540, filed 12/24/01, effective 1/1/02. Statutory Authority: RCW 82.32.300, 84.33.096 and 84.33.120. 01-02-018, § 458-40-540, filed 12/21/00, effective 1/1/01; 00-02-018, § 458-40-540, filed 12/27/99, effective 1/1/00; 99-02-030, § 458-40-540, filed 12/30/98, effective 1/1/99; 98-02-014, § 458-40-540, filed 12/30/97, effective 1/1/98; 97-07-041, § 458-40-540, filed 3/14/97, effective 4/14/97; 96-02-055, § 458-40-540, filed 12/29/95, effective 1/1/96. Statutory Authority: RCW 82.32.300 and 84.33.120. 95-02-039, § 458-40-540, filed 12/30/94, effective 1/1/95. Statutory Authority: RCW 82.32.300. 94-02-046, § 458-40-540, filed 12/30/93, effective 1/1/94. Statutory Authority: RCW 84.33.120. 93-02-024, § 458-40-540, filed 12/31/92, effective 1/1/93; 91-24-026, § 458-40-540, filed 11/26/91, effective 1/1/92. Statutory Authority: RCW 84.33.120 and 84.08.010. 90-24-012, § 458-40-540, filed 11/27/90, effective 12/28/90; 89-23-095, § 458-40-540, filed 11/21/89, effective 12/22/89. Statutory Authority: RCW 84.33.120 and 84.33.130. 88-23-055 (Order FT-88-3), § 458-40-540, filed 11/15/88; 87-22-068 (Order FT-87-3), § 458-40-540, filed 11/4/87. Statutory Authority: Chapter 84.33 RCW. 87-02-023 (Order 86-4), § 458-40-540, filed 12/31/86.]

OTS-5119.1


AMENDATORY SECTION(Amending WSR 12-14-065, filed 6/29/12, effective 7/1/12)

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)) January 1 through ((December 31, 2012)) June 30, 2013:


((PROPOSED STUMPAGE VALUE TABLE))
Washington State Department of Revenue
STUMPAGE VALUE TABLE
((July)) January 1 through ((December 31, 2012)) June 30, 2013

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 $348 $341 $334 $327 $320
2 438 431 424 417 410
3 384 377 370 363 356
4 397 390 383 376 369
5 385 378 371 364 357
6 163 156 149 142 135
Western Hemlock and Other Conifer(3) WH 1 352 345 338 331 324
2 400 393 386 379 372
3 400 393 386 379 372

4 365 358 351 344 337
5 372 365 358 351 344
6 146 139 132 125 118
Western Redcedar (4) RC 1-5 727 720 713 706 699
6 441 434 427 420 413
Ponderosa Pine(5) PP 1-6 180 173 166 159 152
Red Alder RA 1-5 515 508 501 494 487
Black Cottonwood BC 1-5 88 81 74 67 60
Other Hardwood OH 1-5 229 222 215 208 201
6 113 106 99 92 85
Douglas-Fir Poles & Piles DFL 1-5 800 793 786 779 772
Western Redcedar Poles RCL 1-5 1328 1321 1314 1307 1300
6 723 716 709 702 695
Chipwood(6) CHW 1-5 23 22 21 20 19
6 13 12 11 10 9
Small Logs(6) SML 6 23 22 21 20 19
RC Shake & Shingle Blocks(7) RCS 1-6 164 157 150 143 136
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 $344 $337 $330 $323 $316
2 389 382 375 368 361
3 321 314 307 300 293
4 389 382 375 368 361
5 380 373 366 359 352
6 210 203 196 189 182
Western Hemlock and WH 1 290 283 276 269 262
Other Conifer(3) 2 324 317 310 303 296
3 249 242 235 228 221
4 303 296 289 282 275
5 343 336 329 322 315
6 199 192 185 178 171
Western Redcedar(4) RC 1-5 756 749 742 735 728
6 509 502 495 488 481
Ponderosa Pine(5) PP 1-6 180 173 166 159 152
Red Alder RA 1-5 509 502 495 488 481
Black Cottonwood BC 1-5 105 98 91 84 77
Other Hardwood OH 1-5 221 214 207 200 193
6 59 52 45 38 31
Douglas-fir Poles & Piles DFL 1-5 797 790 783 776 769
Western Redcedar Poles RCL 1-5 1358 1351 1344 1337 1330
6 757 750 743 736 729
Chipwood (6) CHW 1-5 19 18 17 16 15
6 7 6 5 4 3
Small Logs (6) SML 6 24 23 22 21 20
RC Shake & Shingle Blocks(7) RCS 1-5 164 157 150 143 136
Posts(8) LPP 1-5 0.35 0.35 0.35 0.35 0.35
DF Christmas Trees(9) DFX 1-5 0.25 0.25 0.25 0.25 0.25
Other Christmas Trees(9) TFX 1-5 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, or any other conifer not listed on this page.
(4) Includes Alaska-Cedar.
(5) Includes Western White Pine.
(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, 2012)) June 30, 2013:


TABLE 9—Harvest Adjustment Table
Stumpage Value Areas 1, 2, 3, 4, and 5
((July)) January 1 through ((December 31, 2012)) June 30, 2013


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. -$50.00
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, 2012)) June 30, 2013


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: $((12.00)) 11.00

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.

[Statutory Authority: RCW 82.32.300, 82.01.060(2), 84.33.096, and 84.33.091. 12-14-065, § 458-40-660, filed 6/29/12, effective 7/1/12. Statutory Authority: RCW 82.01.060(2), 82.32.300, 84.33.096, 84.33.091 and 84.33.140. 12-02-040, § 458-40-660, filed 12/29/11, effective 1/1/12. Statutory Authority: RCW 82.01.060(2), 82.32.300, 84.33.096 and 84.33.091. 11-14-051, § 458-40-660, filed 6/29/11, effective 7/1/11; 11-02-014, § 458-40-660, filed 12/29/10, effective 1/1/11; 10-14-095, § 458-40-660, filed 7/6/10, effective 7/6/10; 10-02-032, § 458-40-660, filed 12/29/09, effective 1/1/10; 09-14-109, § 458-40-660, filed 6/30/09, effective 7/1/09; 09-02-043, § 458-40-660, filed 12/31/08, effective 1/1/09; 08-14-085, § 458-40-660, filed 6/27/08, effective 7/1/08; 08-02-064, § 458-40-660, filed 12/28/07, effective 1/1/08; 07-14-095, § 458-40-660, filed 6/29/07, effective 7/1/07; 07-02-039, § 458-40-660, filed 12/26/06, effective 1/1/07; 06-14-064, § 458-40-660, filed 6/30/06, effective 7/1/06; 06-02-005, § 458-40-660, filed 12/22/05, effective 1/1/06; 05-14-087, § 458-40-660, filed 6/30/05, effective 7/1/05; 05-02-040, § 458-40-660, filed 12/30/04, effective 1/1/05; 04-14-033, § 458-40-660, filed 6/29/04, effective 7/1/04; 04-01-125, § 458-40-660, filed 12/18/03, effective 1/1/04; 03-14-072, § 458-40-660, filed 6/26/03, effective 7/1/03. Statutory Authority: RCW 82.01.060(2), 82.32.300, 84.33.096, 84.33.091, and 84.33.140. 03-02-004, § 458-40-660, filed 12/19/02, effective 1/1/03. Statutory Authority: RCW 82.32.300, 84.33.096, and 84.33.091. 02-14-019, § 458-40-660, filed 6/21/02, effective 7/1/02. Statutory Authority: RCW 82.32.300, 84.33.096, 84.33.091 and 84.33.120. 02-02-033, § 458-40-660, filed 12/24/01, effective 1/1/02. Statutory Authority: RCW 82.32.300, 84.33.096, and 84.33.091. 01-13-105, § 458-40-660, filed 6/20/01, effective 7/1/01; 01-02-020, § 458-40-660, filed 12/21/00, effective 1/1/01. Statutory Authority: RCW 82.32.300, 84.33.096, 84.33.091, 82.32.060, and 84.33.077. 00-19-067, § 458-40-660, filed 9/19/00, effective 1/1/01. Statutory Authority: RCW 82.32.300, 84.33.096 and 84.33.091. 00-14-011, § 458-40-660, filed 6/27/00, effective 7/1/00; 00-02-019, § 458-40-660, filed 12/27/99, effective 1/1/00; 99-14-055, § 458-40-660, filed 6/30/99, effective 7/1/99; 99-02-032, § 458-40-660, filed 12/30/98, effective 1/1/99; 98-14-083, § 458-40-660, filed 6/30/98, effective 7/1/98; 98-02-015, § 458-40-660, filed 12/30/97, effective 1/1/98; 97-14-068, § 458-40-660, filed 6/30/97, effective 7/1/97. Statutory Authority: RCW 82.32.330, 84.33.096 and 84.33.091. 97-02-069, § 458-40-660, filed 12/31/96, effective 1/1/97; 96-14-063, § 458-40-660, filed 6/28/96, effective 7/1/96; 96-02-057, § 458-40-660, filed 12/29/95, effective 1/1/96. Statutory Authority: RCW 82.32.330, 84.33.096 and 84.33.200. 95-18-027, § 458-40-660, filed 8/25/95, effective 9/25/95. Statutory Authority: RCW 82.32.300 and 84.33.096. 95-02-038, § 458-40-660, filed 12/30/94, effective 1/1/95. Statutory Authority: RCW 84.33.091, 84.32.300 [82.32.300] and 84.33.096. 94-14-048, § 458-40-660, filed 6/30/94, effective 7/1/94; 94-02-047, § 458-40-660, filed 12/30/93, effective 1/1/94; 93-14-051, § 458-40-660, filed 6/30/93, effective 7/1/93; 93-02-025, § 458-40-660, filed 12/31/92, effective 1/1/93; 92-14-083, § 458-40-660, filed 6/29/92, effective 7/1/92; 92-02-067, § 458-40-660, filed 12/31/91, effective 1/1/92. Statutory Authority: RCW 84.33.096 and 82.32.300. 91-14-077, § 458-40-660, filed 6/28/91, effective 7/1/91; 91-09-030, § 458-40-660, filed 4/12/91, effective 5/13/91; 91-02-088, § 458-40-660, filed 12/31/90, effective 1/31/91; 90-14-033, § 458-40-660, filed 6/29/90, effective 7/30/90; 90-02-049, § 458-40-660, filed 12/29/89, effective 1/29/90. Statutory Authority: Chapter 84.33 RCW and RCW 84.33.091. 89-14-051 (Order FT-89-2), § 458-40-660, filed 6/30/89; 89-02-027 (Order FT-88-5), § 458-40-660, filed 12/30/88; 88-14-032 (Order FT-88-2), § 458-40-660, filed 6/30/88; 88-02-026 (Order FT-87-5), § 458-40-660, filed 12/31/87. Statutory Authority: Chapter 84.33 RCW. 87-14-042 (Order 87-2), § 458-40-660, filed 6/30/87; 87-02-023 (Order 86-4), § 458-40-660, filed 12/31/86.]