WSR 14-10-051
PROPOSED RULES
DEPARTMENT OF REVENUE
[Filed May 1, 2014, 10:39 a.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 14-06-087.
Title of Rule and Other Identifying Information: WAC 458-40-660 Timber excise tax—Stumpage value tables—Stumpage value adjustments.
Hearing Location(s): Capital Plaza Building, Fourth Floor Executive Conference Room, 1025 Union Avenue S.E., Olympia, WA, on June 10, 2014, at 10:00 a.m.
Copies of draft rules are available for viewing and printing on our web site at Rules Agenda.
Call-in option can be provided upon request no later than three days before the hearing date.
Date of Intended Adoption: June 17, 2014.
Submit Written Comments to: Mark E. Bohe, P.O. Box 47453, Olympia, WA 98504-7453, e-mail markbohe@dor.wa.gov, by June 10, 2014, 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 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 rule will apply to the second half of 2014.
Statutory Authority for Adoption: RCW 82.32.300, 82.01.060(2), and 84.33.096.
Statute Being Implemented: RCW 84.33.091.
Rule is not necessitated by federal law, federal or state court decision.
Name of Proponent: Department of revenue, governmental.
Name of Agency Personnel Responsible for Drafting: Mark Bohe, 1025 Union Avenue S.E., Suite #544, Olympia, WA, (360) 534-1574; Implementation and Enforcement: Stuart Thronson, 1025 Union Avenue S.E., Suite #544, 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.
A cost-benefit analysis is required under RCW 34.05.328. A preliminary cost-benefit analysis may be obtained by contacting Mark E. Bohe, Interpretations and Technical Advice Division, P.O. Box 47453, Olympia, WA 98504-7453, phone (360) 534-1574, e-mail markbohe@dor.wa.gov. The proposed rule is a significant legislative rule as defined by RCW 34.05.328.
May 1, 2014
Dylan Waits
Rules Coordinator
AMENDATORY SECTION (Amending WSR 14-01-097, filed 12/17/13, effective 1/1/14)
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 ((January)) July 1 through ((June 30)) December 31, 2014:
Washington State Department of Revenue
STUMPAGE VALUE TABLE
((January)) July 1 through ((June 30)) December 31, 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.
Species
Name
Species Code
SVA (Stumpage Value Area)
Haul Zone
1
 
2
 
3
 
4
 
5
 
((Douglas-fir(2)
DF
1
$440
$433
$426
$419
$412
 
 
2
462
455
448
441
434
 
 
3
379
372
365
358
351
 
 
4
476
469
462
455
448
 
 
5
437
430
423
416
409
 
 
6
250
243
236
229
222
Western Hemlock and
WH
1
380
373
366
359
352
Other Conifer(3)
 
2
392
385
378
371
364
 
 
3
344
337
330
323
316
 
 
4
357
350
343
336
329
 
 
5
337
330
323
316
309
 
 
6
253
246
239
232
225
Western Redcedar(4)
RC
1-5
972
965
958
951
944
 
 
6
654
647
640
633
626
Ponderosa Pine(5)
PP
1-6
209
202
195
188
181
Red Alder
RA
1-5
464
457
450
443
436
Black Cottonwood
BC
1-5
52
45
38
31
24
Other Hardwood
OH
1-5
262
255
248
241
234
 
 
6
23
16
9
2
1
Douglas-fir Poles & Piles
DFL
1-5
802
795
788
781
774
Western Redcedar Poles
RCL
1-5
1401
1394
1387
1380
1373
 
 
6
913
906
899
892
885
Chipwood(6)
CHW
1-5
6
5
4
3
2
 
 
6
1
1
1
1
1
Small Logs(6)
SML
6
30
29
28
27
26
RC Shake & Shingle Blocks(7)
RCS
1-5
178
171
164
157
150
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))
Douglas-fir(2)
DF
1
$476
$469
$462
$455
$448
 
 
2
516
509
502
495
488
 
 
3
438
431
424
417
410
 
 
4
530
523
516
509
502
 
 
5
470
463
456
449
442
 
 
6
265
258
251
244
237
Western Hemlock and
WH
1
408
401
394
387
380
Other Conifer(3)
 
2
430
423
416
409
402
 
 
3
396
389
382
375
368
 
 
4
385
378
371
364
357
 
 
5
407
400
393
386
379
 
 
6
273
266
259
252
245
Western Redcedar(4)
RC
1-5
943
936
929
922
915
 
 
6
705
698
691
684
677
Ponderosa Pine(5)
PP
1-6
222
215
208
201
194
Red Alder
RA
1-5
466
459
452
445
438
Black Cottonwood
BC
1-5
54
47
40
33
26
Other Hardwood
OH
1-5
280
273
266
259
252
 
 
6
23
16
9
2
1
Douglas-fir Poles & Piles
DFL
1-5
840
833
826
819
812
Western Redcedar Poles
RCL
1-5
1378
1371
1364
1357
1350
 
 
6
935
928
921
914
907
Chipwood(6)
CHW
1-5
6
5
4
3
2
 
 
6
1
1
1
1
1
Small Logs(6)
SML
6
30
29
28
27
26
RC Shake & Shingle Blocks(7)
RCS
1-6
178
171
164
157
150
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
(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 ((January)) July 1 through ((June 30)) December 31, 2014:
TABLE 9—Harvest Adjustment Table
Stumpage Value Areas 1, 2, 3, 4, and 5
((January)) July 1 through ((June 30)) December 31, 2014
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
((January)) July 1 through ((June 30)) December 31, 2014
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:
$((8.00)) 4.00
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.