WSR 15-22-057
PROPOSED RULES
DEPARTMENT OF REVENUE
[Filed October 30, 2015, 8:50 a.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 15-18-055.
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 8, 2015, 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: December 10, 2015.
Submit Written Comments to: Mark E. Bohe, Department of Revenue, Interpretations and Technical Advice Division, P.O. Box 47453, Olympia, WA 98504-7453, e-mail markbohe@dor.wa.gov, fax (360) 534-1606, by December 10, 2015.
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 2016.
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 2016.
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 #102, 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, 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 30, 2015
Kevin Dixon
Rules Coordinator
AMENDATORY SECTION (Amending WSR 15-01-095, filed 12/17/14, effective 1/1/15)
WAC 458-40-540 Forest land values—((2015)) 2016.
The forest land values, per acre, for each grade of forest land for the ((2015)) 2016 assessment year are determined to be as follows:
LAND
GRADE
OPERABILITY
CLASS
((2015))
2016
VALUES PER ACRE
1
1
2
3
4
$((193)) 203
((191)) 201
((179)) 188
((130)) 137
2
1
2
3
4
((164)) 172
((158)) 166
((151)) 159
((108)) 113
3
1
2
3
4
((127)) 133
((123)) 129
((122)) 128
((94)) 99
4
1
2
3
4
((98)) 103
((95)) 100
((94)) 99
((71)) 75
5
1
2
3
4
((71)) 75
((63)) 66
((62)) 65
((44)) 46
6
1
2
3
4
((36)) 38
((34)) 36
((34)) 36
((32)) 34
7
1
2
3
4
((16)) 17
((16)) 17
((15)) 16
((15)) 16
8
1
1
AMENDATORY SECTION (Amending WSR 15-14-019, filed 6/22/15, effective 7/1/15)
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 1 through December 31, 2015)) January 1 through June 30, 2016:
Washington State Department of Revenue
STUMPAGE VALUE TABLE
((July 1 through December 31, 2015))
January 1 through June 30, 2016
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
$463
$456
$449
$442
$435
 
 
2
485
478
471
464
457
 
 
3
457
450
443
436
429
 
 
4
527
520
513
506
499
 
 
5
474
467
460
453
446
 
 
6
282
275
268
261
254
Western Hemlock and
WH
1
312
305
298
291
284
Other Conifer(3)
 
2
363
356
349
342
335
 
 
3
374
367
360
353
346
 
 
4
359
352
345
338
331
 
 
5
354
347
340
333
326
 
 
6
260
253
246
239
232
Western Redcedar(4)
RC
1-5
963
956
949
942
935
 
 
6
704
697
690
683
676
Ponderosa Pine(5)
PP
1-6
232
225
218
211
204
Red Alder
RA
1-5
492
485
478
471
464
Black Cottonwood
BC
1-5
80
73
66
59
52
Other Hardwood
OH
1-5
338
331
324
317
310
 
 
6
32
25
18
11
1
Douglas-fir Poles & Piles
DFL
1-5
879
872
865
858
851
Western Redcedar Poles
RCL
1-5
1522
1515
1508
1501
1494
 
 
6
953
946
939
932
925
Chipwood(6)
CHW
1-5
10
9
8
7
6
 
 
6
4
3
2
1
1
Small Logs(6)
SML
6
24
23
22
21
20
RC Shake & Shingle Blocks(7)
RCS
1-6
289
282
275
268
261
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
$423
$416
$409
$402
$395
 
 
2
459
452
445
438
431
 
 
3
482
475
468
461
454
 
 
4
506
499
492
485
478
 
 
5
429
422
415
408
401
 
 
6
307
300
293
286
279
Western Hemlock and
WH
1
266
259
252
245
238
Other Conifer(3)
 
2
323
316
309
302
295
 
 
3
310
303
296
289
282
 
 
4
289
282
275
268
261
 
 
5
280
273
266
259
252
 
 
6
260
253
246
239
232
Western Redcedar(4)
RC
1-5
958
951
944
937
930
 
 
6
783
776
769
762
755
Ponderosa Pine(5)
PP
1-6
240
233
226
219
212
Red Alder
RA
1-5
476
469
462
455
448
Black Cottonwood
BC
1-5
86
79
72
65
58
Other Hardwood
OH
1-5
328
321
314
307
300
 
 
6
32
25
18
11
4
Douglas-fir Poles & Piles
DFL
1-5
817
810
803
796
789
Western Redcedar Poles
RCL
1-5
1544
1537
1530
1523
1516
 
 
6
1026
1019
1012
1005
998
Chipwood(6)
CHW
1-5
12
11
10
9
8
 
 
6
4
3
2
1
1
Small Logs(6)
SML
6
25
24
23
22
21
RC Shake & Shingle Blocks(7)
RCS
1-6
289
282
275
268
261
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 in SVA 6, or any other conifer not listed on this page.
(4)
Includes Alaska-Cedar.
(5)
Includes Western White Pine in SVA 6, and all Pines in SVA 1-5.
(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 1 through December 31, 2015)) January 1 through June 30, 2016:
TABLE 9—Harvest Adjustment Table
Stumpage Value Areas 1, 2, 3, 4, and 5
((July 1 through December 31, 2015))
January 1 through June 30, 2016
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.
-$85.00
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 1 through December 31, 2015))
January 1 through June 30, 2016
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:
$0.00
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.