SENATE BILL REPORT

HB 199

BYRepresentatives Sayan, Taylor, Sprenkle and Holland; by request of Department of Revenue

Modifying timber excise tax administrative provisions.

House Committe on Ways & Means/Revenue

Senate Committee on Ways & Means

Senate Hearing Date(s):March 23, 1987

Majority Report:  Do pass.

      Signed by Senators McDermott, Chairman; Gaspard, Vice Chairman; Bauer, Cantu, Craswell, Deccio, Kreidler, McDonald, Moore, Rasmussen, Rinehart, Talmadge, Vognild, Warnke, Williams, Wojahn, Zimmerman.

Senate Staff:William Bafus (786-7437)

                  March 26, 1987

AS REPORTED BY COMMITTEE ON WAYS & MEANS, MARCH 23, 1987

BACKGROUND:

Under current law, timber harvesters whose tax liability is less than $10 in any calendar quarter are exempt from paying the timber excise tax.  The Department of Revenue estimates that it takes approximately $50 to open and process a new taxpayer account.

Additionally, small harvesters of specialty wood products (cedar shakes, fence posts, etc.) who harvest from private land are not allowed to use the small harvester reporting option which allows payment of tax based on the actual amount paid for stumpage instead of the Department of Revenue's published stumpage rate schedules. Small harvesters of specialty wood products from public lands are allowed to exercise this option.  A small harvester is defined as one who harvests 500,000 board feet or less of product during any calendar quarter and 1,000,000 or less of product during any calendar year.

SUMMARY:

The threshold tax liability for paying the timber excise tax is increased from $10 in any calendar quarter to $50 in any calendar quarter. Small harvesters of specialty wood products on private lands are included in the definition of small harvester in RCW 84.33.073 and 84.33.074.

Revenue:    The bill has a revenue impact.

Fiscal Note:      available

Senate Committee - Testified: No one