H-1790              _______________________________________________

                                                   HOUSE BILL NO. 2100

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State of Washington                               51st Legislature                              1989 Regular Session

By Representative Hargrove

Read first time 2/22/89 and referred to Committees on Natural Resources & Parks/Revenue.

AN ACT Relating to revenue and taxation; adding a new chapter to Title 84 RCW; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.     An excise tax is imposed on every person engaging in this state in business as a harvester of timber on privately or publicly owned land.  This tax is equal to the stumpage value of timber harvested for sale or for commercial or industrial use multiplied by the rate provided in this chapter.

NEW SECTION. Sec. 2.     A credit is allowed against the tax imposed under this chapter for any tax paid under RCW 84.33.051.

NEW SECTION. Sec. 3.     Moneys received as payment for the tax shall be deposited in the timber tax distribution account in the state treasury.

NEW SECTION. Sec. 4.     All earnings of investments of balances in the timber tax distribution account shall be credited to the general fund.

NEW SECTION. Sec. 5.     The excise tax rate imposed under section 1 of this act for timber harvested after January 1, 1990, shall be taxed at the rate of six and seventy-three one-hundredths percent.

NEW SECTION. Sec. 6.     Exempted from this tax are all local processors of lumber, veneer, plywood, chips, and wood by-products.  This exemption shall take effect on January 1, 1990.

NEW SECTION. Sec. 7.     Sections 1 through 6 of this act shall constitute a new chapter in Title 84 RCW.

NEW SECTION. Sec. 8.     This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.