WSR 00-08-109

PREPROPOSAL STATEMENT OF INQUIRY

DEPARTMENT OF REVENUE


[ Filed April 5, 2000, 11:00 a.m. ]

Subject of Possible Rule Making: WAC 458-40-660 Timber excise tax -- Stumpage value tables.

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 stumpage value tables be revised twice each year and directs that reasonable and adequate allowances for age, size, quality, costs of removal, accessibility to point to conversion, and market conditions be considered. The stumpage values are established by the department so that timber harvesters are apprised of the timber values on which the timber excise tax is calculated. The current rule adjusts values by a fixed amount for the volume of timber harvested per acre or board feet and the slope of the area being harvested. Harvesting practices and regulations involving these practices have changed since these adjustments were adopted. The department is reviewing the rule to determine if the fixed values, need, and method for these adjustments remain valid and/or whether these adjustments can be simplified for ease in reporting and administration.

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 nontax processes and definitions are coordinated with these agencies to avoid conflict, but there should be no need to involve them in the valuation revisions 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 after April 25, 2000, 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 edr@dor.wa.gov.

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