WSR 97-14-002

INTERPRETIVE STATEMENT

DEPARTMENT OF REVENUE

[Filed June 18, 1997, 3:58 p.m.]

Property Tax Bulletin 97-1--Procedure for assessment of state timber sales

Property Tax Bulletin 97-2--"True leases" or installment contracts

Property Tax Bulletin 90-2--Procedure for assessment of state timber sales

Property Tax Bulletin 91-14--Procedure for assessment of state timber sales

This announcement of the Department of Revenue's actions with respect to these advisory interpretive statements is being published in the Washington State Register pursuant to the requirements of RCW 34.05.230(4).

The Department of Revenue has adopted Property Tax Bulletins 97-1 (Procedure for assessment of state timber sales) and 97-2 ("True leases" or installment contracts).

The purpose of Property Tax Bulletin (PTB) 97-2 is to provide information that will assist counties to distinguish a "true lease" from a financing agreement. This information is necessary to determine the ownership of personal property when the lessee is a government entity or a nonprofit organization that may be entitled to an exemption. It will be used by the Department of Revenue in ratio audits and in determining the exemption status of personal property of nonprofit organizations.

PTB 97-1 provides uniform procedures for determining the taxable value of timber sold by agencies of state and local government. This bulletin is designed for use by assessors and Department of Revenue staff. PTBs 90-2 and 91-14, which address the same subject matter, have been repealed.

Requests for copies of these bulletins may be directed to Peri Maxey, Property Tax Division, P.O. Box 47471, Olympia, WA 98504-7471, phone (360) 586-2902, FAX (360) 586-7602.

Claire Hesselholt