S-0143.1  _______________________________________________

                         SENATE BILL 5203

          _______________________________________________

State of Washington      56th Legislature     1999 Regular Session

By Senators Winsley and Loveland

Read first time 01/15/1999.  Referred to Committee on Natural Resources, Parks & Recreation.

Requiring the purchaser of timber from a sustained yield cooperative agreement to pay all taxes due as a result of the sales contract.

    AN ACT Relating to sustained yield cooperative agreements; and amending RCW 79.60.090.

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

    Sec. 1.  RCW 79.60.090 and 1988 c 128 s 74 are each amended to read as follows:

    The purchaser shall, at the time of executing the contract, deliver a performance bond or sureties acceptable in regard to terms and amount to the department of natural resources, but such performance bond or sureties shall not exceed ten percent of the estimated value of the timber purchased computed at the stumpage price and at no time shall exceed a total of fifty thousand dollars.  The purchaser shall also be required to make a cash deposit equal to twenty percent of the estimated value of the timber purchased, computed at the stumpage bid.  Upon failure of the purchaser to comply with the terms of the contract, the performance bond or sureties may be forfeited to the state upon order of the department of natural resources.

    At no time shall the amount due the state for timber actually cut and removed exceed the amount of the deposit as hereinabove set forth.  The amount of the deposit shall be returned to the purchaser upon completion and full compliance with the contract by the purchaser, or it may, at the discretion of the purchaser, be applied on final payment on the contract.

The purchaser must pay all taxes, including but not limited to excise and personal property taxes that are due, or that become due, as a result of the contract.

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