FOREST TAX SECTION

FOREST EXCISE TAX RETURN INSTRUCTIONS

FOR

STUMPAGE VALUE AREA'S

1, 2, 3, 4, 5, & 10

January 1 Through June 30, 2000

Use the attached tables to complete your Forest Excise Tax Return. Refer to the Tax Reporting Instructions included here for additional information. If you have questions or need assistance, CONTACT THE DEPARTMENT OF REVENUE, SPECIAL PROGRAMS DIVISION, FOREST TAX SECTION IN OLYMPIA, TOLL-FREE 1-800-548-8829.

The first page of the Forest Excise Tax Return is the Summary Page for the return. A Detail Page or several Detail Pages will first need to be completed before completing this Summary Page. Detail Page instructions begin on page 2.

ERRORS AND OMISSIONS

If there are errors or omissions in the pre-printed information on the Forest Excise Tax Return, line out the errors. Enter corrections on the blank lines.

SECTIONS WITH NO HARVEST

A column entitled "Check if No Harvest on This Section" is on the Summary Page. Check this column if no harvest occurred on a specific section.

DELETING PERMITS AND/OR LEGAL DESCRIPTIONS FROM FUTURE TAX RETURNS

Two columns indicating "Check to Delete" are on the Summary Page:

Delete Section. Check only if the specific section should be deleted.

Delete DNR Application (Permit) Number. Check only if all sections for this specific application number are to be deleted. CAUTION: A deleted DNR application number indicates that harvest is totally completed for all sections on the application and the tax has been paid. If the application has been transferred, please attach the DNR transfer form to you tax return.

SALMON CREDIT

The term "Salmon Credit" relates to the provisions set forth in 1999 1st Special Session WA. Laws Ch. 4 Sec. 401. Under this section of the law, taxpayers are allowed a credit (referred to as the Salmon Credit in the tax returns and instructions) on their Forest Excise Tax for timber harvested under a Department of Natural Resources (DNR) approved Forest Practices Application (FPA) subject to enhanced aquatic resources requirements. Look for the "Y" (yes) in the Approved Salmon Credit column on the Summary page of your tax return to determine if the DNR has approved your FPA(s) for this credit.

The Forest Excise Tax rate remains unchanged at 5% of taxable stumpage value. Under the Salmon Credit, eligible FPAs will receive a credit equal to 0.8% of taxable stumpage value. Instructions to calculate the Salmon Credit are provided in the detail page instructions and on the detail page of your tax return. Please follow these instructions to ensure you receive the proper credit.

COMPUTATION

Grand Total Stumpage Value. Add values in the Total Taxable Stumpage Value column. This may include multiple summary pages. Enter the amount calculated in the Grand Total Stumpage Value block at the bottom of the Summary Page.

Tax Due. Multiply the Grand Total Stumpage Value amount by the current Forest Tax rate (.05) and enter the tax due in this block. Please do not round the tax due to the nearest dollar. If the tax due is less than $50.00, do not pay. However, the return must be completed and mailed.

Salmon Credit. Add all credits in the Amount of Salmon Credit column on the Summary Page(s). Enter this amount in the Less Salmon Credit box at the bottom of the Summary Page.

Previous Credit. When entering credit(s), attach a copy of the credit note(s) to your tax return.

Penalty is computed as follows: Tax Due minus any credits (Salmon Credit and/or Previous Credit), multiplied by the appropriate penalty percentage rate. Please do not round the penalty amount to the nearest dollar. The minimum amount of penalty is $5.00 for any late filing if tax is due. Return must be postmarked by the due date to avoid penalties. Penalty is assessed as follows:

5% penalty assessed after due date;

10% penalty assessed after the last day of the month following the due date;

20% penalty assessed after the last day of the second month following the due date.

Total Payment Enclosed. Tax Due minus any credits (Salmon Credit and/or Previous Credit) plus penalty equals total payment. Please do not round total payment to the nearest dollar. Make check payable to: DEPARTMENT OF REVENUE.

Signature and Telephone Number. Sign your name in the signature space. Enter your daytime telephone and area code number. Enter the date.

STANDARD DETAIL PAGE INSTRUCTIONS

A separate Detail Page must be completed for each different Forest Practice Application (Permit) Number, section, and harvest unit.

The following items correspond to the blocks on the standard Detail Page:

Quarter/Year. Enter the quarter and year being reported.

Page Number. Enter the page number on each Detail Page.

BLOCK 1. Harvester’s Name. Enter the name of the harvester. On private land, the harvester is the timber owner.

BLOCK 2. Landowner’s Name. Enter landowner’s name.

BLOCK 3 through BLOCK 9. Transfer the information from the Summary Page.

BLOCK 10. Harvest Unit Number. A harvest unit is an area of proposed timber harvest, defined and mapped by the harvester before harvest. A harvest unit number is a number assigned by the harvester to a harvest unit having only one: county, stumpage value area, haul zone, harvest adjustments, and harvester. If any of the above circumstances vary within a given harvest operation, the area may be divided into separate harvest units, with an individual number assigned to each separate harvest unit. A harvest unit may include parts of more than one section. The harvest unit number assigned must remain the same until the harvest is completed. The harvester must maintain a separate set of records for each designated harvest unit for tax reporting purposes.

BLOCK 11. Harvest Adjustments make allowance for varying harvest conditions. Value adjustments relating to harvest volume per acre, logging conditions, thinning, damaged timber, and remote island are allowed against stumpage value rates.

No harvest adjustment is allowed for Chipwood (CHW), Western Redcedar Shakes (RCS), Western Redcedar Flatsaw (RCF), Western Redcedar Posts (RCP), Douglas-fir Christmas Trees (DFX), or True Fir Christmas Trees (TFX).

The harvest adjustment schedule for SVAs 1, 2, 3, 4, 5, and 10 is listed in the following pages.

Harvest Volume Per Acre. Determine the average volume per acre harvested (excluding Chipwood) within each harvest unit for the reporting quarter.

Enter the average volume per acre in the "Volume" column. Enter the class number in the "Adjustment Class" column. Enter the dollar amount in the "Adjustment Amount" column.

Logging Conditions. Determine from the definitions given in the adjustment tables on page 10 the class of logging conditions in the harvest unit. The logging condition is the majority condition for the harvest unit (as explained in Block 10). A separate Detail Page must be completed for each harvest unit.

A special logging condition adjustment is provided for timber, which is yarded from the stump to the landing by helicopter. This adjustment does not apply to Special Forest Products or Chipwood.

Enter the class number in the "Adjustment Class" column. Enter the dollar amount in the "Adjustment Amount" column.

Thinning Adjustment. Thinning is timber removed from a harvest unit meeting all the following conditions:

Located in SVAs 1, 2, 3, 4, 5, and 10.

The total volume removed is less than 40 percent of the total merchantable volume of the harvest unit prior to harvest.

Leave a minimum of 100 undamaged, evenly spaced dominant or co-dominant trees per acre of a commercial species or combination thereof.

Divide the total volume harvested by the total number of logs (piece count) (excluding Chipwood) taken in the thinning operation. Enter the average volume in the "Volume" column. Enter the class number in the "Adjustment Class" column. Enter the dollar amount in the "Adjustment Amount" column.

Damaged Timber Adjustment. Application for any damaged timber determination must be made prior to harvest. For more information call 1-800-548-8829.

For approved damaged timber, enter the dollar amount allotted by the DOR in the "Adjustment Amount" column.

Remote Island Adjustment. A remote island is an area of land which is totally surrounded by water at normal high tide and which has no bridge or causeway connecting it to the mainland.

For timber harvested from a remote island, enter the dollar amount from the Adjustment Table in the "Adjustment Amount" column.

Total Adjustment Amount, Block 11, Line G. Enter total in "Adjustment Amount" column for lines A through F. Also enter the Total Adjustment amount in Block 15, Column E for each species.

BLOCK 12. Check the appropriate box for Log Scale Method Used.

APPROVED SCRIBNER LOG SCALING & GRADING RULE

SVAs 1, 2, 3, 4, 5, and 10

The acceptable log scaling and grading rule is the Scribner Decimal C log rule. For a complete

description of standard methods and procedures, refer to the most current edition of the "Official Log Scaling and Grading Rules" handbook. Copies can be obtained from the Log Scaling and Grading Bureaus.

Important Points:

The Standard Rule requires that logs be scaled in multiples of one foot in length with no minimum trim required and a maximum trim of 12 inches allowed.

Alternative procedures or Special Services Scaling are used only with prior written approval from the Department of Revenue.

CONVERSION DEFINITIONS AND TABLES

Refer to the Stumpage Value Determination Tables (WAC 458-40-684) for conversion procedures to be used for timber not originally scaled by approved Scribner Decimal C log scale rule, such as weight or cords, etc. Sample scaling or conversion factors (other than the published tables) require written approval prior to harvest. To be approved, sample scaling must be in accordance with guidelines contained in WAC 458-40-682.

Enter a checkmark in the box to the left of the scaling method used.

BLOCK 13. Number of Acres Logged This Quarter. Enter the number of acres actually logged this quarter only for this harvest unit.

BLOCK 14. Is Harvesting Completed for Harvest Unit? The correct box must be checked.

BLOCK 15. Is the FPA eligible for the Salmon Credit? Look on the Summary Page to determine whether this FPA is eligible for the Salmon Credit and check the appropriate box.

BLOCK 16. Taxable Stumpage Value Calculation. The Timber Quality Code Table and the Stumpage Value Table are in the following pages.

COLUMN A. Species Code. Enter the species codes as they are listed on the Stumpage Value Table. (Example: Douglas Fir – DF; Red Alder – RA; Red Cedar Shake Blocks – RCS).

If you harvest other conifer species that are not listed in the Stumpage Value Tables, report them as OC (Other Conifer).

If you harvest other hardwood species that are not listed in the Stumpage Value Tables, report them as OH (Other Hardwood).

COLUMN B. Quality Code. Enter only one quality code for each species reported. Use the scaling information provided by the purchaser or scaler of the logs to determine the quality code. The scaling information provides the species, volume, and log grade. Determine what percentage of the total net Scribner or net volume of each species is a number two sawmill and better log grade. Also determine what percentage of the total volume of each species is special mill, number one sawmill and better log grade. Refer to the Timber Quality Code Table and select the correct quality code for that species.

COLUMN C. Volume Harvested. Enter the net volume of each species harvested during the quarter. All volumes must be rounded to the nearest thousand board feet (MBF). For example: 15,499 BF, enter as 15 and 15,500 BF enter as 16. All species having at least 500 board feet (rounded

to 1 MBF) must be reported. For tons to MBF conversions see WAC 458-40-684 at the end of this document.

All volume except for Christmas trees, posts, and Chipwood must be reported in Scribner Decimal C log scale. Christmas trees are reported in lineal feet. Posts are reported in number of posts (8 lineal feet per post). Chipwood is reported in tons.

Add lines 1 through 9 of Column C and enter this total on line 10.

COLUMN D. Stumpage Value. Enter the stumpage value for the correct species, quality code and haul zone from the Stumpage Value Table.

COLUMN E. Total Adjustment Amount. This is the amount transferred from Block 11, Line G as an adjustment to the stumpage value for all sawlog species reported.

COLUMN F. Adjusted Stumpage Value. Enter the amount determined by subtracting the adjustment amount from the stumpage value (Column D minus Column E equals Column F). This value cannot be adjusted to less than $1.00 per MBF.

COLUMN G. Taxable Stumpage Value. Multiply the volume in Column C times the adjusted stumpage value in Column F and enter the figure in Column G. (Column C times Column F equals Column G).

BLOCK 17. Chipwood Value Calculation. Utility grade logs scaled by approved DOR scaling methods may be reported as Chipwood. Logs delivered to DOR approved destinations for the purpose of being chipped may be reported as Chipwood. The volume of Chipwood shall be reported in tons. The documentation shall be retained to show that the logs sold were "chip", "pulp", or "fibre" type logs. Logs chipped in the woods may also be reported as chipwood. The volume of logs chipped in the woods shall be measured in tons of green chips and sufficient documentation of volume shall be retained for verification of reporting. The Species and Timber quality code is printed on the return and the value found in the following table.

COLUMN C. Tons Harvested. Enter the total Chipwood tons for all species harvested during the quarter. All volumes must be reported in tons rounded to the nearest ton. For example: 30,999 pounds enter as 15 and 31,000 pounds enter as 16. All species having at least 1000 pounds (rounded to 1 ton) must be reported. All scaled utility (Code 99) volume shall be multiplied by 9 to convert from MBF to tons for reporting as Chipwood. For tax reporting purposes, a ton equals 2000 pounds.

COLUMN D. Ton Value. Enter the ton value for Chipwood from the proper haul zone in the Stumpage Value Table. Enter the appropriate destination code or codes for Chipwood from the published destination table. If you are reporting scaled utility or sample scaled utility as Chipwood, your "destination code" will be 99.

Chipwood Destination Codes. Use the following two digit codes for reporting Chipwood:

01 Logs chipped in the woods

03 Boise Cascade (Umatilla, OR)

07 Bullfrog (Cle Elum)

14 Citifor Inc. (Port of Olympia)

10 Coastal Fibre Inc. (Arlington)

09 Columbia Fiber (Kalama)

06 Crown Pacific Inland (Coeur d’Alene, ID)

11 DaPaul (Tumwater)

13 Diashowa (Port Angeles)

21 Dodge Logging Inc. (Glenwood)

25 Edman Company (Tacoma)

68 Edwards Forest Products (Port Gamble)

54 Evergreen Fiber (Port Angeles)

27 Flaggate & Woodworth Log (Canada)

30 Granger Company (Clarkston)

32 James River Corporation (Wauna, OR)

57 Kimberly Clark (Everett)

43 Local Manufacturing (Aberdeen)

65 Longview Fibre Co. (Winton)

34 Mountain Fir Chip Co. (Clarkston)

35 Mountain Fir Chip Co. (The Dalles, OR)

37 North Mason Fiber (Belfair)

39 Northwest Forest Fiber (Morton)

41 Northwest Forest Fiber (Tacoma)

42 Northwest Forest Fiber (Birdsview)

45 Oakville Forest Products (Oakville)

47 Olympic Fiber (Aberdeen)

49 Pacific Fiber (Longview0

51 Ponderay Valley Fiber (Usk)

56 S. V. Pullin (Tacoma)

59 S. V. Pullin, Inc. (Shelton)

62 Trans Coastal Trading Inc. (Canada)

66 Vaagen Brothers Lumber Co. (Colville)

60 Warrenton Fiber or Nygards (Warrenton, OR)

15 Willis Enterprises (Forks)

16 Willis Enterprises (Hoquiam)

19 Willis Enterprises (Shelton)

20 Willis Enterprises (Port of Olympia)

22 Willis Enterprises (Everett)

64 Woodchip Inc. (Black Diamond)

70 Zosel Lumber Co. (4 miles south of Oroville)

99 Scaled Utility

COLUMN G. Taxable Tonnage Value. Multiply the volume in Column C times the ton value in Column D and enter the figure in Column G. (Column C times Column D equals Column G).

BLOCK 18. Total Taxable Value. Add lines 1 through 9 of column G in Block 16 and the two lines of Column G in Block 17 and enter this total in Block 18.

Transfer to the "Total Taxable Stumpage Value" column on the Summary Page in the row that corresponds to this FPA.

BLOCK 19. Salmon Credit. If the Salmon Credit is allowed for this FPA, multiply Total Taxable Value (Block 18) by 0.008. This is the amount of your Salmon Credit for this FPA. Transfer the amount of credit from Block 19 to the column entitled "Amount of Salmon Credit" on the Summary Page in the row that corresponds to this FPA.

WAC 458-40-650 Timber excise tax – Timber quality codes defines. The timber quality code numbers for each species of timber shown in the stumpage value tables are defined as follows:

TABLE 1 -- Timber Quality Code Table

Stumpage Value Areas 1, 2, 3, 4, 5, and 10 All Harvesters

Species

Timber Quality Code Number

Log Grade Specifications

Douglas-fir

1

Over 50% No. 2 Sawmill and better log grade, and 15% and over Special Mill, No. 1 Sawmill and better log grade.

2

Over 50% No. 2 Sawmill and better log grade, and less than 15% Special Mill, No. 1 Sawmill and better log grade.

3

25-50% inclusive No. 2 Sawmill and better log grade.

4

Less than 25% No. 2 Sawmill and better log grade.

Western Redcedar and Alaska-Cedar

1

Over 30% No. 2 Sawmill and better log grade, and 15% and over Special Mill, No. 1 Sawmill, and better log grade.

2

Over 30% No. 2 Sawmill and better log grade, and less than 15% Special Mill, No. 1 Sawmill and better log grade.

3

5-30% inclusive No. 2 Sawmill and better log grade.

4

Less than 5% No. 2 Sawmill and better log grade.
Western Hemlock, True Firs, Spruce and Other Conifer

1

Over 50% No. 2 Sawmill and better log grade, and 5% and over Special Mill, No. 1 Sawmill and better log grade.

2

Over 50% No. 2 Sawmill and better log grade, and less than 5% Special Mill, No. 1 Sawmill and better log grade.

3

25-50% inclusive No. 2 Sawmill and better log grade.

4

Less than 25% No. 2 Sawmill and better log grade.

Ponderosa Pine

1

Less than 10 logs 16 feet long per thousand board feet Scribner scale.

2

10 or more logs 16 feet long per thousand board feet Scribner scale.

Lodgepole Pine

1

All log grades.

Red Alder and other hardwoods

1

Over 50% No. 3 Sawmill and better log grades.

2

10-50% inclusive No. 3 Sawmill and better log grades.

3

Less than 10% inclusive No. 3 Sawmill and better log grades.

Black Cottonwood

1

35% and over Peeler log grade.

2

Less than 35% Peeler log grade, and 15% and greater No. 1 Sawmill and better log grade.

3

Less than 15% No. 1 Sawmill and better log grade.

Chipwood

1

All logs that comply with the definition of chipwood in WAC 458-40-610 (18)(d).

Piles

1

Logs complying with the piles definition in WAC 458-40-610 (18)(g).

Poles

1

Logs complying with the poles definition in WAC 458-40-610 (18)(h).

 

For detailed descriptions and definitions of approved log scaling, grading rules, and procedures see WAC 458-40-680.

TABLE 2 -- Harvest Adjustment Table

Stumpage Value Areas 1, 2, 3, 4, 5, and 10

Type of Adjustment

Definition

Dollar Adjustment Per Thousand Board Feet Net Scribner Scale

I. Volume per acre

Class 1

Harvest of more than 40 thousand board feet per acre.

$0.00

Class 2

Harvest of 20 thousand board feet to 40 thousand board feet per acre.

-$4.00

Class 3

Harvest of 10 thousand board feet to but not including 20 thousand board feet per acre.

-$7.00

Class 4

Harvest of 5 thousand board feet to but not including 10 thousand board feet per acre.

-$9.00

Class 5

Harvest of less than 5 thousand board feet per acre.

-$10.00

II. Logging conditions

Class 1

Most of the harvest unit has less than 30% slope. No significant rock outcrops or swamp barriers.

$0.00

Class 2

Most of the harvest unit has slopes between 30% and 60%. Some rock outcrops or swamp barriers.

-$17.00

Class 3

Most of the harvest unit has rough, broken ground with slopes over 60%. Numerous rock outcrops and bluffs.

-$25.00

Class 4

For logs which are yarded from stump to landing by helicopter. This does not include special forest products.

-$145.00

Note: A Class 2 adjustment may be used for slopes less than 30% 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.

III. Remote island adjustment:
For timber harvested from a remote island

-$50.00

IV. Thinning (see WAC 458-40-610(20))

Class 1

Average log volume of 50 board feet or more.

-$25.00

Class 2

Average log volume of less than 50 board feet.

-$125.00

WAC 458-40-684 TIMBER EXCISE TAX – VOLUME HARVESTED – CONVERSIONS TO SCRIBNER DECIMAL C SCALE FOR WESTERN WASHINGTON. The following definitions, tables, and conversion factors shall be used in determining taxable volume for timber harvested that was not originally scaled by the Scribner Decimal C Log Rule. Conversion methods, other than those listed, are not to be used for tax reporting purposes without prior written approval of the Department. For conversions not found in this reference call 1-800-548-8829.

WEIGHT MEASUREMENT. If the original unit of measure was by weight, and the harvester has not applied for approval of sample scaling (WAC 458-40-682), the following table shall be used for converting to Scribner Decimal C. Harvesters must keep records to substantiate the species and quality codes reported. For tax reporting purposes, a ton equals 2,000 pounds.

CLICK ON DESIRED STUMPAGE VALUE AREA FOR TABLE:

SVA 1   SVA 2     SVA 3     SVA 4    SVA 5    SVA 10

Table 3 -- BOARD FOOT WEIGHT SCALE FACTORS

Stumpage Value Areas 1, 2, 3, 4, 5, &10

(TONS/MBF)

Quality Code

Species Code

DF*

WH**

RC

RA***

1

5.0

6.0

4.5

7.0

2

6.0

6.5

5.0

7.8

3

6.5

7.5

6.5

8.5

4

7.5

8.3

7.0

* Includes Douglas fir, and Sitka Spruce.

** Includes Western Hemlock, Mountain Hemlock, Pacific Silver Fir, Noble Fir, Grand Fir, Subalpine Fir, and other conifers not separately designated. Pacific Silver Fir, Noble Fir, Grand Fir, and Subalpine Fir are all commonly referred to as "White Fir".

*** Maple, Black Cottonwood and other hardwoods.

CORD MEASUREMENT. A cord is a measure of wood with dimensions of 4 feet by 4 feet by 8 feet (128 feet).

Logs with an average scaling diameter of 8 inches and larger shall be converted to Scribner volume using 400 board feet per cord. Logs having an average scaling diameter of less than 8 inches shall be converted to Scribner volume using 330 board feet per cord.

A cord of Western Redcedar shake or shingle blocks shall be converted to Scribner volume using 600 board feet per cord.

CANTS OR LUMBER FROM PORTABLE MILLS. To convert from lumber tally to Scribner volume, multiply the lumber tally for the individual species by 75% and round to the nearest one thousand board feet (MBF).

EASTERN, WESTERN LOG SCALE CONVERSION. Timber harvested in stumpage value areas 1, 2, 3, 4, 5, and 10 and which has been scaled by methods and procedures published in the "National Forest Log Scaling Handbook" (FSH 2409.11) shall have the volumes reported reduced by 18% to reflect the difference between eastern and western scaling practices.

TIMBER POLE VOLUME TABLE. Harvesters of poles in stumpage value areas 1, 2, 3, 4, 5, and 10 in need of the Scribner board foot volume for each pole length and class: CONTACT THE DEPARTMENT OF REVENUE, SPECIAL PROGRAMS DIVISION, FOREST TAX SECTION IN OLYMPIA, TOLL-FREE 1-800-548-8829.

CLICK HERE FOR TIMBER POLE VOLUMES

CONTACT THE DEPARTMENT OF REVENUE, SPECIAL PROGRAMS DIVISION, FOREST TAX SECTION IN OLYMPIA, TOLL-FREE 1-800-548-8829.