WSR 14-01-097 PERMANENT RULES DEPARTMENT OF REVENUE [Filed December 17, 2013, 3:31 p.m., effective January 1, 2014] Effective Date of Rule: January 1, 2014.
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, 2014. The stumpage value rule is also required by statute (RCW 84.33.091) to be effective on January 1, 2014.
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 2014 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 2014.
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 13-22-066 on November 5, 2013.
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Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 2, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.
Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.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 17, 2013.
Alan R. Lynn
Rules Coordinator
AMENDATORY SECTION (Amending WSR 13-02-034, filed 12/21/12, effective 1/1/13)
WAC 458-40-540 Forest land values—((2013)) 2014.
The forest land values, per acre, for each grade of forest land for the ((2013)) 2014 assessment year are determined to be as follows:
AMENDATORY SECTION (Amending WSR 13-14-056, filed 6/28/13, effective 7/1/13)
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, 2013)) June 30, 2014: Washington State Department of Revenue STUMPAGE VALUE TABLE ((July)) January 1 through ((December 31, 2013)) June 30, 2014 Stumpage Values per Thousand Board Feet Net Scribner Log Scale(1) Starting July 1, 2012, there are no separate Quality Codes per Species Code.
(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, 2013)) June 30, 2014: TABLE 9—Harvest Adjustment Table Stumpage Value Areas 1, 2, 3, 4, and 5 ((July)) January 1 through ((December 31, 2013)) June 30, 2014
TABLE 10—Harvest Adjustment Table Stumpage Value Area 6 ((July)) January 1 through ((December 31, 2013)) June 30, 2014
TABLE 11—Domestic Market Adjustment
(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.
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