HOUSE BILL REPORT

                  HB 2478

                    As Passed Legislature

Title:  An act relating to reporting sales of timber stumpage and logs.

Brief Description:  Requiring reporting to the Department of Revenue by purchasers of timber and logs.

Sponsors:  Representatives Foreman and G. Fisher; by request of Department of Revenue.

Brief History:

Reported by House Committee on:

Revenue, January 28, 1994, DP;

  Passed House, February 10, 1994, 94-0;

  Amended by Senate;

House concurred;

Passed Legislature, March 9, 1994, 94-0.

HOUSE COMMITTEE ON REVENUE

Majority Report:  Do pass.  Signed by 16 members:  Representatives G. Fisher, Chair; Holm, Vice Chair; Foreman, Ranking Minority Member; Fuhrman, Assistant Ranking Minority Member; Anderson; Brown; Caver; Cothern; Leonard; Romero; Rust; Silver; Talcott; Thibaudeau; Van Luven; and Wang.

Staff:  Rick Peterson (786-7150).

Background:  The Forest Excise Tax is based on timber stumpage values.  Stumpage is the value of timber as it stands uncut in the woods.  The Department of Revenue is required by law to establish timber stumpage values semi-annually.  Until about two years ago, the department used publicly-owned timber sales as comparable sales for computing stumpage values.  Recently, the number of public sales has declined significantly.

Two years ago the department adopted an administrative rule requiring buyers of privately-owned timber to report details of sales in excess of 100,000 board feet.

Summary of Bill:   Buyers of privately-owned timber are required to report the details of transactions in excess of 200,000 board feet to the department.  Purchasers of privately-owned timber who fail to report may be liable for a penalty of $250 for each failure to report.  The requirement to report details of timber purchases ends March 1, 1997.

Fiscal Note:  Requested January 21, 1994.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  The Department of Revenue needs the information from private sales to accurately establish timber stumpage values.

Testimony Against:  None.

Witnesses:  Ryan Spiller, Department of Revenue; and Richard Junk, Washington Forest Protection Association.