FINAL BILL REPORT

                  SSB 5651

                           C 51 L 99

                      Synopsis as Enacted

Brief Description:  Requiring a purchaser of timber by contract to provide proof of payment of all taxes before release of a performance bond.

Sponsors:  Senate Committee on Natural Resources, Parks & Recreation (originally sponsored by Senators Winsley and Loveland).

Senate Committee on Natural Resources, Parks & Recreation

Senate Committee on Ways & Means

House Committee on Natural Resources

Background:  When timber is purchased at public auction from the Department of Natural Resources, the purchaser must deliver a performance bond or sureties acceptable in regards to the terms and the amount due to the Department of Natural Resources.  Following the time that the timber is cut, the state releases the sureties or the bond.  At the present time, there is no requirement that all taxes must be paid by the purchaser when the bond is released.

Summary:  The purchaser of timber must pay all taxes including the excise and personal property taxes that are due or that become due as a result of a timber contract.  The county treasurer must provide a receipt to the purchaser within 30 days.

Votes on Final Passage:

Senate 45 0

House     91 0

Effective:  July 25, 1999