WSR 19-21-156
PROPOSED RULES
DEPARTMENT OF REVENUE
[Filed October 22, 2019, 12:01 p.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 19-17-076.
Title of Rule and Other Identifying Information: WAC 458-40-540 Forest land values—2020 and 458-40-660 Timber excise tax—Stumpage value tables—Stumpage value adjustments.
Hearing Location(s): On December 3, 2019, at 10:00 a.m., at Conference Room 114A, 6400 Linderson Way S.W., Tumwater, WA 98501. Copies of draft rules are available for viewing and printing on our website at dor.wa.gov. Call-in option can be provided upon request no later than three days before the hearing date.
Date of Intended Adoption: December 13, 2019.
Submit Written Comments to: Brenton M. Madison, P.O. Box 47453, Olympia, WA 98504-7453, email BrentonM@dor.wa.gov, fax 360-534-1606, by December 12, 2019.
Assistance for Persons with Disabilities: Contact Julie King or Renee Cosare, phone 360-704-5733 or 360-704-5734, TTY 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 the 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 beginning January 1, 2020, through June 30, 2020.
The forest land values have been updated to reflect land values per acre for 2020.
Reasons Supporting Proposal: This proposal provides the revised stumpage value tables for January 1, 2020, through June 30, 2020, and the forest land values for 2020.
Statutory Authority for Adoption: RCW 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: Brenton M. Madison, 6400 Linderson Way S.W., Tumwater, WA, 360-534-1583; Implementation and Enforcement: John Ryser, 6400 Linderson Way S.W., Tumwater, WA, 360-534-1603.
A school district fiscal impact statement is not required under RCW 28A.305.135.
A cost-benefit analysis is required under RCW 34.05.328. A preliminary cost-benefit analysis may be obtained by contacting Brenton M. Madison, Interpretations and Technical Advice Division, P.O. Box 47453, Olympia, WA 98504-7453, phone 360-534-1583, fax 360-534-1606.
The proposed rule does not impose more-than-minor costs on businesses. Following is a summary of the agency's analysis showing how costs were calculated. Only large businesses are required to use the values contained in the rules, small businesses have other statutory authority for their tax reporting obligations.
October 22, 2019
Atif Aziz
Rules Coordinator
AMENDATORY SECTION(Amending WSR 19-02-069, filed 12/28/18, effective 1/1/19)
WAC 458-40-540Forest land values—((2019))2020.
The forest land values, per acre, for each grade of forest land for the ((2019))2020 assessment year are determined to be as follows:
land
grade
operability
class
((2019))2020
values per acre
1
1
2
3
4
$((211))218
((209))216
((195))202
((143))148
2
1
2
3
4
((180))186
((173))179
((166))172
((118))122
3
1
2
3
4
((139))144
((135))140
((134))138
((103))106
4
1
2
3
4
((108))112
((104))107
((103))106
((78))81
5
1
2
3
4
((78))81
((69))71
((68))70
((48))50
6
1
2
3
4
((40))41
((38))39
((38))39
((36))37
7
1
2
3
4
((17))18
((17))18
((16))17
((16))17
8
1
1
AMENDATORY SECTION(Amending WSR 19-14-013, filed 6/21/19, effective 7/1/19)
WAC 458-40-660Timber 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, 2019))January 1 through June 30, 2020:
Washington State Department of Revenue
WESTERN WASHINGTON STUMPAGE VALUE TABLE
((July 1 through December 31, 2019))
January 1 through June 30, 2020
Stumpage Values per Thousand Board Feet Net Scribner Log Scale(1)
Starting January 1, 2019, there are no Haul Zone adjustments.
Species Name
Species Code
SVA (Stumpage Value Area)
Stumpage Values
Douglas-fir(2)
DF
1
$((452))
365
 
2
((494))
456
 
3
((495))
433
 
4
((577))
502
 
5
((474))
459
 
9
((438))
351
 
Western Hemlock and
Other Conifer(3)
WH
1
((286))
206
 
2
((396))
276
 
3
((384))
280
 
4
((344))
281
 
5
((339))
265
 
9
((272))
192
 
Western Redcedar(4)
RC
1-5
((1045))
892
 
9
((1031))
878
 
Ponderosa Pine(5)
PP
1-5
((187))
184
 
9
((173))
170
 
Red Alder
RA
1-5
((655))
552
 
9
((641))
538
 
Black Cottonwood
BC
1-5
((79))
53
 
9
((65))
39
 
Other Hardwood
OH
1-5
((337))
309
 
9
((323))
295
 
Douglas-fir Poles & Piles
DFL
1-5
((758))
763
 
9
((744))
749
 
Western Redcedar Poles
RCL
1-5
((1428))
1447
 
9
((1414))
1433
 
Chipwood(6)
CHW
1-5
((15))
13
 
9
((13))
11
 
RC Shake & Shingle Blocks(7)
RCS
1-9
((285))
301
 
Posts(8)
LPP
1-9
0.35
 
DF Christmas Trees(9)
DFX
1-9
0.25
 
Other Christmas Trees(9)
TFX
1-9
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, or any other conifer not listed on this page.
(4)
Includes Alaska-Cedar.
(5)
Includes all Pines in SVA 1-5 & 9.
(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.
Washington State Department of Revenue
EASTERN WASHINGTON STUMPAGE VALUE TABLE
((July 1 through December 31, 2019))
January 1 through June 30, 2020
Stumpage Values per Thousand Board Feet Net Scribner Log Scale(1)
Starting January 1, 2019, there are no Haul Zone adjustments.
Species Name
Species Code
SVA (Stumpage Value Area)
Stumpage Values
Douglas-fir(2)
DF
6
$((296))
258
 
7
((310))
272
 
Western Hemlock and
Other Conifer(3)
WH
6
((302))
273
 
7
((316))
287
 
Western Redcedar(4)
RC
6
((1037))
904
 
7
((1051))
918
 
Ponderosa Pine(5)
PP
6
((173))
170
 
7
((187))
184
 
Other Hardwood
OH
6
9
 
7
9
 
Western Redcedar Poles
RCL
6
((1373))
1369
 
7
((1387))
1383
 
Chipwood(6)
CHW
6
1
 
7
1
 
Small Logs(6)
SML
6
21
 
7
23
 
RC Shake & Shingle Blocks(7)
RCS
6-7
((285))
301
 
Posts(8)
LPP
6-7
0.35
 
DF Christmas Trees(9)
DFX
6-7
0.25
 
Other Christmas Trees(9)
TFX
6-7
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, and Lodgepole Pine in SVA 6-7, or any other conifer not listed on this table.
(4)
Includes Alaska-Cedar.
(5)
Includes Western White Pine in SVA 6-7.
(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 1 through June 30, ((2019))2020:
TABLE 9—Harvest Adjustment Table
Stumpage Value Areas 1, 2, 3, 4, 5, and 9
((July 1 through December 31, 2019))
January 1 through June 30, 2020
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 Areas 6 and 7
((July 1 through December 31, 2019))
January 1 through June 30, 2020
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.