FINAL BILL REPORT

                  HB 2478

                         C 229 L 94

                     Synopsis as Enacted

Brief Description:  Requiring reporting to the Department of Revenue by purchasers of timber and logs.

By Representatives Foreman and G. Fisher; by request of Department of Revenue.

House Committee on Revenue

Senate Committee on Ways & Means

Background:  The Forest Excise Tax is based on timber stumpage values.  Stumpage is the value of timber as it stands uncut in the woods.  The Department of Revenue is required by law to establish timber stumpage values semi-annually.  Until 1992, the department used publicly-owned timber sales as comparable sales for computing stumpage values.  Since that time, the number of public sales has declined significantly.

In 1992, the department adopted an administrative rule requiring buyers of privately-owned timber to report details of sales in excess of 100,000 board feet.

Summary:   Purchasers of more than 200,000 board feet of privately-owned timber are required to report the details of the transaction to the Department of Revenue.  Purchasers of privately-owned timber who fail to report may be liable for a penalty of $250 for each failure to report.  The requirement to report details of timber purchases expires March 1, 1997.

Votes on Final Passage:

House  94 0

Senate 35 2 (Senate amended)

House            (House refused to concur)

Senate           (Senate refused to recede)

House  94 0 (House concurred)

Effective:  June 9, 1994