14-01-097

WSR 14-01-097

PERMANENT RULES

DEPARTMENT OF REVENUE

[Filed December 17, 2013, 3:31 p.m., effective January 1, 2014]

Effective Date of Rule: January 1, 2014.

Other Findings Required by Other Provisions of Law as Precondition to Adoption or Effectiveness of Rule: The forest land value rule is required by statute (RCW 84.33.140) to be effective on January 1, 2014. The stumpage value rule is also required by statute (RCW 84.33.091) to be effective on January 1, 2014.

Purpose: WAC 458-40-540 contains the forest land values, which must be adjusted annually by a statutory formula contained in RCW 84.33.140(3). This rule has been amended to provide county assessors with forest land values for the 2014 assessment year.

WAC 458-40-660 contains the stumpage values used by harvesters of timber to calculate the timber excise tax. This rule is being revised to provide the stumpage values to be used during the first half of 2014.

Citation of Existing Rules Affected by this Order: Amending WAC 458-40-540 Forest land values and 458-40-660 Timber excise tax-Stumpage value tables-Stumpage value adjustments.

Statutory Authority for Adoption: RCW 82.01.060(2), 82.32.300, and 84.33.096.

Other Authority: RCW 84.33.091.

Adopted under notice filed as WSR 13-22-066 on November 5, 2013.

A final cost-benefit analysis is available by contacting Mark E. Bohe, P.O. Box 47453, Olympia, WA 98504-7453, phone [phone], fax [phone], e-mail [e-mail].

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 2, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.

Date Adopted: December 17, 2013.

Alan R. Lynn

Rules Coordinator

AMENDATORY SECTION (Amending WSR 13-02-034, filed 12/21/12, effective 1/1/13)

WAC 458-40-540 Forest land values-((2013)) 2014.

The forest land values, per acre, for each grade of forest land for the ((2013)) 2014 assessment year are determined to be as follows:

LAND GRADE	OPERABILITY CLASS	((2013)) 2014 VALUES PER ACRE
((1	1 2 3 4	$191 189 177 128
2	1 2 3 4	161 156 149 107
3	1 2 3 4	125 121 120 93
4	1 2 3 4	97 94 93 70
5	1 2 3 4	70 63 62 43
6	1 2 3 4	35 33 33 31
7	1 2 3 4	16 16 15 15
8	1	1))
1	1 2 3 4	$189 187 175 127
2	1 2 3 4	160 155 148 106
3	1 2 3 4	124 120 119 92
4	1 2 3 4	96 93 92 69
5	1 2 3 4	69 62 61 43
6	1 2 3 4	35 33 33 31
7	1 2 3 4	16 16 15 15
8	1	1

AMENDATORY SECTION (Amending WSR 13-14-056, filed 6/28/13, effective 7/1/13)

WAC 458-40-660 Timber excise tax-Stumpage value tables-Stumpage value adjustments.

(1) Introduction. This rule provides stumpage value tables and stumpage value adjustments used to calculate the amount of a harvester's timber excise tax.

(2) Stumpage value tables. The following stumpage value tables are used to calculate the taxable value of stumpage harvested from ((July)) January 1 through ((December 31, 2013)) June 30, 2014:

Washington State Department of Revenue

STUMPAGE VALUE TABLE

((July)) January 1 through ((December 31, 2013)) June 30, 2014

Stumpage Values per Thousand Board Feet Net Scribner Log Scale(1)

Starting July 1, 2012, there are no separate

Quality Codes per Species Code.

((Species Name	Species Code	SVA (Stumpage Value Area)	Haul Zone
			1	2	3	4	5
Douglas-fir(2)	DF	1	$392	$385	$378	$371	$364
		2	388	381	374	367	360
		3	308	301	294	287	280
		4	442	435	428	421	414
		5	424	417	410	403	396
		6	224	217	210	203	196
Western Hemlock and	WH	1	361	354	347	340	333
Other Conifer(3)		2	353	346	339	332	325
		3	260	253	246	239	232
		4	340	333	326	319	312
		5	352	345	338	331	324
		6	211	204	197	190	183
Western Redcedar(4)	RC	1-5	808	801	794	787	780
		6	483	476	469	462	455
Ponderosa Pine(5)	PP	1-6	190	183	176	169	162
Red Alder	RA	1-5	479	472	465	458	451
Black Cottonwood	BC	1-5	90	83	76	69	62
Other Hardwood	OH	1-5	229	222	215	208	201
		6	23	16	9	2	1
Douglas-fir Poles & Piles	DFL	1-5	789	782	775	768	761
Western Redcedar Poles	RCL	1-5	1379	1372	1365	1358	1351
		6	854	847	840	833	826
Chipwood(6)	CHW	1-5	10	9	8	7	6
		6	1	1	1	1	1
Small Logs(6)	SML	6	27	26	25	24	23
RC Shake & Shingle Blocks(7)	RCS	1-5	164	157	150	143	136
Posts(8)	LPP	1-5	0.35	0.35	0.35	0.35	0.35
DF Christmas Trees(9)	DFX	1-5	0.25	0.25	0.25	0.25	0.25
Other Christmas Trees(9)	TFX	1-5	0.50	0.50	0.50	0.50	0.50

(1)	Log scale conversions Western and Eastern Washington. See conversion methods WAC 458-40-680.
(2)	Includes Western Larch.
(3)	Includes all Hemlock, Spruce and true Fir species, Lodgepole Pine, or any other conifer not listed on this page.
(4)	Includes Alaska-Cedar.
(5)	Includes Western White Pine.
(6)	Stumpage value per ton.
(7)	Stumpage value per cord.
(8)	Includes Lodgepole posts and other posts, Stumpage Value per 8 lineal feet or portion thereof.
(9)	Stumpage Value per lineal foot.))

Species Name	Species Code	SVA (Stumpage Value Area)	Haul Zone
			1	2	3	4	5
Douglas-fir(2)	DF	1	$440	$433	$426	$419	$412
		2	462	455	448	441	434
		3	379	372	365	358	351
		4	476	469	462	455	448
		5	437	430	423	416	409
		6	250	243	236	229	222
Western Hemlock and	WH	1	380	373	366	359	352
Other Conifer(3)		2	392	385	378	371	364
		3	344	337	330	323	316
		4	357	350	343	336	329
		5	337	330	323	316	309
		6	253	246	239	232	225
Western Redcedar(4)	RC	1-5	972	965	958	951	944
		6	654	647	640	633	626
Ponderosa Pine(5)	PP	1-6	209	202	195	188	181
Red Alder	RA	1-5	464	457	450	443	436
Black Cottonwood	BC	1-5	52	45	38	31	24
Other Hardwood	OH	1-5	262	255	248	241	234
		6	23	16	9	2	1
Douglas-fir Poles & Piles	DFL	1-5	802	795	788	781	774
Western Redcedar Poles	RCL	1-5	1401	1394	1387	1380	1373
		6	913	906	899	892	885
Chipwood(6)	CHW	1-5	6	5	4	3	2
		6	1	1	1	1	1
Small Logs(6)	SML	6	30	29	28	27	26
RC Shake & Shingle Blocks(7)	RCS	1-5	178	171	164	157	150
Posts(8)	LPP	1-5	0.35	0.35	0.35	0.35	0.35
DF Christmas Trees(9)	DFX	1-5	0.25	0.25	0.25	0.25	0.25
Other Christmas Trees(9)	TFX	1-5	0.50	0.50	0.50	0.50	0.50

(1)	Log scale conversions Western and Eastern Washington. See conversion methods WAC 458-40-680.
(2)	Includes Western Larch.
(3)	Includes all Hemlock, Spruce and true Fir species, Lodgepole Pine, or any other conifer not listed on this page.
(4)	Includes Alaska-Cedar.
(5)	Includes Western White Pine.
(6)	Stumpage value per ton.
(7)	Stumpage value per cord.
(8)	Includes Lodgepole posts and other posts, Stumpage Value per 8 lineal feet or portion thereof.
(9)	Stumpage Value per lineal foot.

(3) Harvest value adjustments. The stumpage values in subsection (2) of this rule for the designated stumpage value areas are adjusted for various logging and harvest conditions, subject to the following:

(a) No harvest adjustment is allowed for special forest products, chipwood, or small logs.

(b) Conifer and hardwood stumpage value rates cannot be adjusted below one dollar per MBF.

(c) Except for the timber yarded by helicopter, a single logging condition adjustment applies to the entire harvest unit. The taxpayer must use the logging condition adjustment class that applies to a majority (more than 50%) of the acreage in that harvest unit. If the harvest unit is reported over more than one quarter, all quarterly returns for that harvest unit must report the same logging condition adjustment. The helicopter adjustment applies only to the timber volume from the harvest unit that is yarded from stump to landing by helicopter.

(d) The volume per acre adjustment is a single adjustment class for all quarterly returns reporting a harvest unit. A harvest unit is established by the harvester prior to harvesting. The volume per acre is determined by taking the volume logged from the unit excluding the volume reported as chipwood or small logs and dividing by the total acres logged. Total acres logged does not include leave tree areas (RMZ, UMZ, forested wetlands, etc.,) over 2 acres in size.

(e) A domestic market adjustment applies to timber which meet the following criteria:

(i) Public timber - Harvest of timber not sold by a competitive bidding process that is prohibited under the authority of state or federal law from foreign export may be eligible for the domestic market adjustment. The adjustment may be applied only to those species of timber that must be processed domestically. According to type of sale, the adjustment may be applied to the following species:

Federal Timber Sales: All species except Alaska-cedar. (Stat. Ref. - 36 C.F.R. 223.10)

State, and Other Nonfederal, Public Timber Sales: Western Redcedar only. (Stat. Ref. - 50 U.S.C. appendix 2406.1)

(ii) Private timber - Harvest of private timber that is legally restricted from foreign export, under the authority of The Forest Resources Conservation and Shortage Relief Act (Public Law 101-382), (16 U.S.C. Sec. 620 et seq.); the Export Administration Act of 1979 (50 U.S.C. App. 2406(i)); a Cooperative Sustained Yield Unit Agreement made pursuant to the act of March 29, 1944 (16 U.S.C. Sec. 583-583i); or Washington Administrative Code (WAC 240-15-015(2)) is also eligible for the Domestic Market Adjustment.

The following harvest adjustment tables apply from ((July)) January 1 through ((December 31, 2013)) June 30, 2014:

TABLE 9-Harvest Adjustment Table

Stumpage Value Areas 1, 2, 3, 4, and 5

((July)) January 1 through ((December 31, 2013)) June 30, 2014

Type of Adjustment		Definition	Dollar Adjustment Per Thousand Board Feet Net Scribner Scale
I. Volume per acre
Class 1		Harvest of 30 thousand board feet or more per acre.	$0.00
Class 2		Harvest of 10 thousand board feet to but not including 30 thousand board feet per acre.	-$15.00
Class 3		Harvest of less than 10 thousand board feet per acre.	-$35.00
II. Logging conditions
Class 1		Ground based logging a majority of the unit using tracked or wheeled vehicles or draft animals.	$0.00
Class 2		Cable logging a majority of the unit using an overhead system of winch driven cables.	-$50.00
Class 3		Applies to logs yarded from stump to landing by helicopter. This does not apply to special forest products.	-$145.00
III. Remote island adjustment:
		For timber harvested from a remote island	-$50.00
IV. Thinning
Class 1		A limited removal of timber described in WAC 458-40-610 (28)	-$100.00

TABLE 10-Harvest Adjustment Table

Stumpage Value Area 6

((July)) January 1 through ((December 31, 2013)) June 30, 2014

Type of Adjustment		Definition	Dollar Adjustment Per Thousand Board Feet Net Scribner Scale
I. Volume per acre
Class 1		Harvest of more than 8 thousand board feet per acre.	$0.00
Class 2		Harvest of 8 thousand board feet per acre and less.	-$8.00
II. Logging conditions
Class 1		The majority of the harvest unit has less than 40% slope. No significant rock outcrops or swamp barriers.	$0.00
Class 2		The majority of the harvest unit has slopes between 40% and 60%. Some rock outcrops or swamp barriers.	-$50.00
Class 3		The majority of the harvest unit has rough, broken ground with slopes over 60%. Numerous rock outcrops and bluffs.	-$75.00
Class 4		Applies to logs yarded from stump to landing by helicopter. This does not apply to special forest products.	-$145.00
Note:	A Class 2 adjustment may be used for slopes less than 40% when cable logging is required by a duly promulgated forest practice regulation. Written documentation of this requirement must be provided by the taxpayer to the department of revenue.
III. Remote island adjustment:
		For timber harvested from a remote island	-$50.00

TABLE 11-Domestic Market Adjustment

Class		Area Adjustment Applies	Dollar Adjustment Per Thousand Board Feet Net Scribner Scale
		SVAs 1 through 5 only:	$((9.00)) 8.00

Note:	This adjustment only applies to published MBF sawlog values.

(4) Damaged timber. Timber harvesters planning to remove timber from areas having damaged timber may apply to the department of revenue for an adjustment in stumpage values. The application must contain a map with the legal descriptions of the area, an accurate estimate of the volume of damaged timber to be removed, a description of the damage sustained by the timber with an evaluation of the extent to which the stumpage values have been materially reduced from the values shown in the applicable tables, and a list of estimated additional costs to be incurred resulting from the removal of the damaged timber. The application must be received and approved by the department of revenue before the harvest commences. Upon receipt of an application, the department of revenue will determine the amount of adjustment to be applied against the stumpage values. Timber that has been damaged due to sudden and unforeseen causes may qualify.

(a) Sudden and unforeseen causes of damage that qualify for consideration of an adjustment include:

(i) Causes listed in RCW 84.33.091; fire, blow down, ice storm, flood.

(ii) Others not listed; volcanic activity, earthquake.

(b) Causes that do not qualify for adjustment include:

(i) Animal damage, root rot, mistletoe, prior logging, insect damage, normal decay from fungi, and pathogen caused diseases; and

(ii) Any damage that can be accounted for in the accepted normal scaling rules through volume or grade reductions.

(c) The department of revenue will not grant adjustments for applications involving timber that has already been harvested but will consider any remaining undisturbed damaged timber scheduled for removal if it is properly identified.

(d) The department of revenue will notify the harvester in writing of approval or denial. Instructions will be included for taking any adjustment amounts approved.

(5) Forest-derived biomass, has a $0/ton stumpage value.