FINAL BILL REPORT

HB 199

                                  C 166 L 87

BYRepresentatives Sayan, Taylor, Sprenkle and Holland; by request of Department of Revenue

Modifying timber excise tax administrative provisions.

House Committe on Ways & Means/Revenue

Senate Committee on Ways & Means

SYNOPSIS AS ENACTED

BACKGROUND:

Timber harvesters whose tax liability is less than $10 in any calendar quarter are exempt from paying the timber excise tax.  The Department of Revenue estimates that it takes approximately $50 to open and process a new taxpayer account.

Additionally, small harvesters of specialty wood products (cedar shakes, fenceposts, etc.) who harvest from private land are not permitted to use the small harvester reporting option which allows payment of tax based on the actual amount paid for stumpage instead of the Department of Revenue's published stumpage rate schedules. Small harvesters of specialty wood products from public lands are allowed to exercise this option.  A small harvester is defined as one who harvests 500,000 board feet or less during any calendar quarter and 1,000,000 or less during any calendar year.

SUMMARY:

The threshold tax liability for paying the timber excise tax is increased from $10 to $50 in any calendar quarter.  Small harvesters of specialty wood products on private lands are included in the definition of a small harvester.

VOTES ON FINAL PASSAGE:

      House 96   0

      Senate    47     0

EFFECTIVE:July 26, 1987