SENATE BILL REPORT

HB 2063

As Reported By Senate Committee On:

Natural Resources, Energy & Water, March 28, 2003

Title: An act relating to extending the expiration date for reporting requirements on timber purchases.

Brief Description: Extending the expiration date for reporting requirements on timber purchases.

Sponsors: Representatives Kristiansen, Blake, Linville, Schoesler, Hatfield, Eickmeyer and Orcutt.

Brief History:

Committee Activity: Natural Resources, Energy & Water: 3/26/03, 3/28/03 [DP].

SENATE COMMITTEE ON NATURAL RESOURCES, ENERGY & WATER

Majority Report: Do pass.

      Signed by Senators Morton, Chair; Doumit, Fraser, Hargrove, Honeyford, Oke and Regala.

Staff: Vic Moon (786-7469)

Background: Every harvester of timber is required to pay an excise tax of 5 percent of the stumpage value of any trees that he or she harvests. The excise tax applies to timber harvested from both private and public lands.

Every person who purchases more than 200,000 board feet of private timber in a voluntary sale is required to report certain information to the Department of Revenue. Information that is required to be reported includes the sale date, the total sale price, total acreage involved in the sale, net volume of timber purchased, road construction that was required, data from the timber cruise, and any timber thinning information. The department may assess a penalty of $250 for failure to report the required information.

Information gathered in the reports is used by the department to establish tables of stumpage values. A stumpage table is required to be prepared for each species of tree that is commercially harvested in Washington. The values on the tables indicate the amount that each species would sell for at a voluntary sale made in the ordinary course of business. The stumpage value tables are used to calculate the excise tax due from each timber harvester.

The requirement to report sales information to the department expires on July 1, 2004.

Summary of Bill: The expiration date of the requirement that data about timber purchases be reported to the department is extended from 2004 until 2007.

Appropriation: None.

Fiscal Note: Not requested.

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

Testimony For: The program to establish timber stumpage tax rates works well and is supported by both public and private timber owners.

Testimony Against: None.

Testified: Representative Kristiansen, prime sponsor (pro); John Ehrenreich, Washington Forest Protection Assn. (pro).