WSR 00-08-108



[ Filed April 5, 2000, 10:59 a.m. ]

Subject of Possible Rule Making: WAC 458-40-650 Timber excise tax -- Timber quality codes defined.

Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 82.32.300 and 84.33.096.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: The law (RCW 84.33.091) requires that the department provide stumpage value tables and take into account the timber's quality when drawing up these tables. The tables break specific species of timber into quality classes by code. This allows the department to more carefully define the stumpage value for that species. The stumpage values determined in these tables are used by timber harvesters to determine the value of the timber prior to harvesting and the timber excise tax due on this value.

The quality codes for the timber currently are diameter dependent (the diameter of the timber determines the grade of the timber). These quality codes are being reexamined because the log market has changed (moving from a diameter-basis to a product basis pricing system and because of the limited availability of larger diameter logs). Changes being considered are how to simplify this reporting and take into account these market changes.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: Although the United States Forest Service and Washington State Department of Natural Resources both regulate forest practices, they are not involved in valuation for purposes of taxation. The quality codes would not impact their regulatory functions or aid them in their regulatory functions so there is no need to involve them in the changes in quality coding for valuation purposes provided in this rule.

Process for Developing New Rule: Modified negotiated rule making.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication. Written comments should be submitted by the public meeting date to ensure full consideration, but will be accepted if they are received two weeks before the date of adoption. Written comments may be submitted by mail, fax, or at the public meeting. Oral comments will be accepted at the public meeting or later public hearing. A draft of the amended rule may be obtained upon request. Written comments or requests for the draft rule may be directed to Ed Ratcliffe, Legislation and Policy, P.O. Box 47467, Olympia, WA 98504-7467, phone (360) 586-3505, fax (360) 664-0693, e-mail

Location and Date of Public Meeting: Department of Revenue Conference Room, Target Place Building No. 4, 2735 Harrison Avenue N.W., Olympia, WA, on May 11, 2000, at 10 a.m.

Assistance for Persons with Disabilities: Contact Ginny Dale no later than ten days before the meeting date, TDD 1-800-451-7985, or (360) 586-0721.

April 5, 2000

Claire Hesselholt

Rules Manager

Legislation and Policy Division

Washington State Code Reviser's Office