Most situations that apply to trucking activity, in general, also apply to deliveries by log trucks. However, there are certain exemptions and taxability issues that apply specifically to log truck drivers. Following is information on the PUT tax rate for hauling of logs over public highways, on export sites, hauling on private roads, and fuel refunds:
PUT tax rate for log trucks
Effective August 1, 2015, the PUT tax rate for hauling logs over public highways is 1.3696 percent of gross income.
For additional information see our Special Notice Reduced Tax Rate for Log Transportation Businesses.
With proper documentation, log truck drivers can deduct amounts received for logs delivered to an export site. The “interstate and foreign sales deduction” is taken on the Deduction Detail page of the Excise Tax Return. The hauler is responsible for getting the Exemption Certificate for Logs Delivered to an Export Facility. All documents must be retained for a period of five years.
TIP: Export sites are located on the water and a docking facility must be present for ships.
Taxability of hauling on private roads
Hauls: In some instances, log truck drivers conduct hauls which are entirely on private roads. If a haul is entirely on private roads the income is reported under the service and other B&O tax classification. The tax rate for service and other activities is 1.5%. Records that document private road hauls must be retained for a period of 5 years.
TIP: Proof of private road hauls include a contract and record of beginning and ending points of a haul.
Fuel: An exemption is allowed for fuel tax paid when the fuel is used off-road. This includes fuel used on private roads to haul logs. If you pay the “special fuel tax” on the purchase of fuel and use the fuel for non-highway purposes, you are eligible for a refund of the special fuel tax. When the special fuel tax is refunded, use tax is due on the fuel.
To get a refund, you must submit a request to the Department of Licensing’s Fuel Tax Section. Send your refund request to:
Fuel Tax Section
Washington State Department of Licensing
PO Box 9228
Olympia, Washington 98507-9228
TIP: If you have questions about fuel tax refund you may call the Fuel Tax Refunds Unit at (360) 664-1838.