FOREST EXCISE TAX RETURN INSTRUCTIONS FOR
STUMPAGE VALUE AREA
6 & 7
6 & 7
January 1 through June 30, 2000
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.
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.
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. Harvesters Name. Enter the name of the harvester. On private land, the harvester is the timber owner.
BLOCK 2. Landowners Name. Enter landowners 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), Small Logs (SML), Western Redcedar Shakes (RCS), Western Redcedar Flatsaw (RCF), Lodgepole Pine Posts (LPP), Douglas-fir Christmas Trees (DFX), or Pine Christmas Trees (PX).
The harvest adjustment schedule for SVAs 6 and 7 is listed in the following pages.
Harvest Volume Per Acre. Determine the average volume per acre harvested (excluding Chipwood and Small Logs) 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 that is yarded from the stump to the landing by helicopter. This adjustment does not apply to Special Forest Products, Chipwood, or Small Logs.
Enter the class number in the "Adjustment Class" column. Enter the dollar amount in the "Adjustment Amount" column.
C. Not Applicable for SVAs 6 and 7.
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 6 and 7
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 "National Forest Log Scaling Handbook" (FHS 2409.11). Copies can be obtained from the U.S. Forest Service.
The maximum scaling length is twenty feet and a maximum trim allowance is six inches for logs eight to twenty feet in length.
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 458-40-686) 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; Ponderosa Pine - PP; Lodgepole Pine and Other Posts - LPP).
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. For Ponderosa Pine, these are determined by the number of sawable sixteen-foot logs per thousand board feet (MBF) net Scribner Decimal C log scale. This computation is made by the following three-step procedure:
Step 1. The highest possible total number of sawable sixteen-foot logs which could be recovered is determined by dividing the sum total length of all sawable logs by the number sixteen.
Step 2. The average net volume per sixteen-foot recoverable log is determined by dividing the total volume harvested (net log scale) by the total number of sixteen-foot logs as determined in Step 1.
Step 3. The total number of logs per thousand board feet (MBF) is determined by dividing one thousand by the average net volume as determined in Step 2. Refer to the "Timber Quality Code" tables and select the correct code.
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 and Small Logs are 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 and Small Log 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. Small log (SML) value applies only in SVA-6 and SVA-7.
COLUMN C. Tons Harvested. Enter the total Chipwood and Small Logs 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 and Small Logs 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 and Small Logs 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 dAlene, 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
Small logs are conifer logs generally measuring seven inches or less in scaling diameter, delivered to and purchased by weight measure at the following facilities. Use the following two digit codes:
81 Longview Fibre Co. (Winton)
83 Vaagen Brothers Lumber Co. (Colville)
85 Vaagen Brothers Lumber Co. (Republic)
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 contained in this chapter are defined as follows:
TABLE 1 -- Timber Quality Code Table
Stumpage Value Areas 6 and 7
Quality Code Number
Log Grade Specifications
|Less than 10 logs 16 feet long per thousand board feet Scribner scale.|
|10 or more logs 16 feet long per thousand board feet Scribner scale.|
|All Conifers other than Ponderosa Pine||
|All log sizes.|
|All conifers logs that comply with the definition of small logs in WAC 458-40-610 (18)(e).|
|All logs that comply with the definition of chipwood in WAC 458-40-610 (18)(d).|
|All logs that comply with the definition of piles in WAC 458-40-610 (18)(g).|
|All logs that comply with the definition of poles in WAC 458-40-610 (18)(h).|
TABLE 2 -- Harvest Adjustment Table
Stumpage Value Areas 6 and 7
Type of Adjustment
Dollar Adjustment Per Thousand Board Feet Net Scribner Scale
|I. Volume per acre|
|Harvest of more than 8 thousand board feet per acre.||
|Harvest of 3 thousand board feet to 8 thousand board feet per acre.||
|Harvest of less than 3 thousand board feet per acre.||
|II. Logging conditions|
|Most of the harvest unit has less than 40% slope. No significant rock outcrops or swamp barriers.||
|Most of the harvest unit has slopes between 40% and 60%. Some rock outcrops or swamp barriers.||
|Most of the harvest unit has rough, broken ground with slopes over 60%. Numerous rock outcrops and bluffs.||
|For logs which are yarded from stump to landing by helicopter. This does not include special forest products.||
|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.|
|III. Remote island adjustment:|
|For timber harvested from a remote island||
WAC 458-40-686 TIMBER EXCISE TAX VOLUME HARVESTED CONVERSIONS TO SCRIBNER DECIMAL C SCALE FOR EASTERN 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.
Table 3 -- Converting tons to MBF
Stumpage Value Areas 6 & 7
Weight Scale Factors
|Ponderosa Pine (quality code 1)||5.0|
|Ponderosa Pine (quality code 2)||6.5|
|Douglas-fir and Western Larch||5.5|
|Western Redcedar and Alaska cedar.||4.5|
* Includes Western Hemlock, Mountain Hemlock, Pacific Silver Fir, Noble Fir, Grand Fir, and Subalpine Fir. Pacific Silver Fir, Noble Fir, Grand Fir, and Subalpine Fir are all commonly referred to as "White Fir".
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 470 board feet per cord. Logs having an average scaling diameter of less than 8 inches shall be converted to Scribner volume using 390 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 88% and round to the nearest one thousand board feet (MBF).
EASTERN, WESTERN LOG SCALE CONVERSION. Timber harvested in stumpage value areas 6 and 7, which has been scaled by methods and procedures published in the "Official Log Scaling and Grading Rules" handbook, developed and authored by the Northwest log rules advisory group, shall have the volumes reported increased by 18% to reflect the difference between eastern and western scaling practices.
TIMBER POLE VOLUME TABLE. Harvesters of poles in stumpage value areas 6 & 7 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.