Every purchaser of more than 200,000 board feet of privately owned timber in a voluntary sale must report the purchase to the Department of Revenue (DOR) on or before the last day of the month in which the purchase took place. DOR may assess a penalty of $250 if a purchaser fails to report the required information.
The purchaser must report information related to the value of the purchase including:
Information gathered in the timber purchase reports is used by DOR to establish stumpage value tables, which are prepared for each species of tree commercially harvested in Washington and indicates the amount each species would sell for at a voluntary sale made in the ordinary course of business. Timber harvesters must pay a 5 percent excise tax on any timber harvested. Stumpage value tables are used to calculate the excise tax amount due from each timber harvester.
The timber purchase reporting requirement expires on July 1, 2021.
The expiration date for reporting timber purchase information to DOR is changed from July 1, 2021, to September 30, 2025.
PRO: The bill has strong support from the timber industry and DOR. By reporting information to DOR it creates a database of transactions to create stumpage value tables and helps determine the fair market value for timber. If the requirement to report information expires, DOR would have to rely on voluntary reporting that would present administrative challenges.