HOUSE BILL REPORT

HB 199

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

Modifying timber excise tax administrative provisions.

House Committe on Ways & Means/Revenue

Majority Report:     Do pass.  (10)

     Signed by Representatives Appelwick, Chair; Basich, Grimm, Holland, Madsen, Rust, Schoon, Taylor, Valle and Winsley.

House Staff:Rick Wickman (786-7150)

AS PASSED HOUSE MARCH 2,1987

BACKGROUND:

Under current law, 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 allowed 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 of product during any calendar quarter and 1,000,000 or less of product during any calendar year.

SUMMARY:

The threshold tax liability for paying the timber excise tax is increased from $10 in any calendar quarter to $50 in any calendar quarter. Small harvesters of specialty wood products on private lands are included in the definition of small harvester in RCW 84.33.073 and 84.33.074.

Revenue:   The bill has a revenue impact.

Fiscal Note:    Attached.

House Committee ‑ Testified For:     Barney McClure, Department of Revenue.

House Committee - Testified Against: None Presented.

House Committee - Testimony For:     This bill provides a minimum $50 quarterly liability as the threshold for collecting timber excise taxes and includes small harvesters of specialty woods under the exemption for small harvesters.

House Committee - Testimony Against: None Presented.