WSR 14-22-062
PROPOSED RULES
DEPARTMENT OF REVENUE
[Filed October 31, 2014, 9:33 a.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 14-19-062.
Title of Rule and Other Identifying Information: WAC 458-40-540 Forest land values and 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 December 10, 2014, at 10:00 a.m. Call-in option can be provided upon request no later than three days before the hearing date. Copies of draft rules are available for viewing and printing on our web site at Rules Agenda.
Date of Intended Adoption: December 16, 2014.
Submit Written Comments to: Mark E. Bohe, Department of Revenue, P.O. Box 47453, Olympia, WA 98504-7453, e-mail markbohe@dor.wa.gov, fax (360) 534-1606, by December 10, 2014.
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 first half of 2015.
Further, RCW 84.33.140 requires that forest land values be adjusted annually by a statutory formula contained in RCW 84.33.140(3). The department anticipates amending the forest land values rule (WAC 458-40-540) to adjust the table of forest land values in Washington as required by statute. County assessors will use these published land values for property tax purposes in 2015.
Reasons Supporting Proposal: Required by statutes and values needed to calculate timber excise and property taxes.
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. These rules do not create reporting, recordkeeping, and other compliance requirements that would economically impact a small business or fiscally impact a school district.
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, fax (360) 534-1606, e-mail markbohe@dor.wa.gov. The proposed rule is a significant legislative rule as defined by RCW 34.05.328.
October 31, 2014
Dylan Waits
Rules Coordinator
AMENDATORY SECTION (Amending WSR 14-01-097, filed 12/17/13, effective 1/1/14)
WAC 458-40-540 Forest land values—((2014)) 2015.
The forest land values, per acre, for each grade of forest land for the ((2014)) 2015 assessment year are determined to be as follows:
LAND
GRADE
OPERABILITY
CLASS
((2014)) 2015
VALUES PER ACRE
((1
1
2
3
4
$189
187
175
127
2
1
2
3
4
160
155
148
106
3
1
2
3
4
124
120
119
92
4
1
2
3
4
96
93
92
69
5
1
2
3
4
69
62
61
43
6
1
2
3
4
35
33
33
31
7
1
2
3
4
16
16
15
15
8
1
1))
1
1
2
3
4
$193
191
179
130
2
1
2
3
4
164
158
151
108
3
1
2
3
4
127
123
122
94
4
1
2
3
4
98
95
94
71
5
1
2
3
4
71
63
62
44
6
1
2
3
4
36
34
34
32
7
1
2
3
4
16
16
15
15
8
1
1
AMENDATORY SECTION (Amending WSR 14-14-079, filed 6/27/14, effective 7/1/14)
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 ((July)) January 1 through ((December 31, 2014)) June 30, 2015:
Washington State Department of Revenue
STUMPAGE VALUE TABLE
((July)) January 1 through ((December 31, 2014)) June 30, 2015
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
$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))
Douglas-fir(2)
DF
1
$494
$487
$480
$473
$466
 
 
2
496
489
482
475
468
 
 
3
423
416
409
402
395
 
 
4
533
526
519
512
505
 
 
5
447
440
433
426
419
 
 
6
271
264
257
250
243
Western Hemlock and
WH
1
428
421
414
407
400
Other Conifer(3)
 
2
437
430
423
416
409
 
 
3
392
385
378
371
364
 
 
4
386
379
372
365
358
 
 
5
408
401
394
387
380
 
 
6
260
253
246
239
232
Western Redcedar(4)
RC
1-5
1001
994
987
980
973
 
 
6
693
686
679
672
665
Ponderosa Pine(5)
PP
1-6
228
221
214
207
200
Red Alder
RA
1-5
481
474
467
460
453
Black Cottonwood
BC
1-5
75
68
61
54
47
Other Hardwood
OH
1-5
339
332
325
318
311
 
 
6
23
16
9
2
1
Douglas-fir Poles & Piles
DFL
1-5
876
869
862
855
848
Western Redcedar Poles
RCL
1-5
1453
1446
1439
1432
1425
 
 
6
944
937
930
923
916
Chipwood(6)
CHW
1-5
8
7
6
5
4
 
 
6
1
1
1
1
1
Small Logs(6)
SML
6
25
24
23
22
21
RC Shake & Shingle Blocks(7)
RCS
1-5
289
282
275
268
261
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, 2014)) June 30, 2015:
TABLE 9—Harvest Adjustment Table
Stumpage Value Areas 1, 2, 3, 4, and 5
((July)) January 1 through ((December 31, 2014)) June 30, 2015
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, 2014)) June 30, 2015
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:
$((4.00)) 2.00
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.