Draft Tax Advisories (ETAs & PTAs)

Brief Description

The purpose of this ETA is to explain the tax application on sales of standing timber. This ETA addresses situations when the sale of standing timber is subject to real estate excise tax (REET) under RCW 82.45.060, when the sale of standing timber is subject to the preferential business and occupation (B&O) tax under RCW 82.04.260(12)(d), or when neither apply. This ETA does not address whether these sales are subject to the forest excise tax under chapter 84.33 RCW (Timber and forestlands), property tax under chapter 84.34 RCW (Open space, agricultural, timberlands – current use – conservation futures), retail sales tax under chapter 82.08 RCW, or other B&O tax under chapter 82.04 RCW.

Draft ETA

Draft ETA 3XXX – Taxability of Standing Timber Sales

Public Comment Period

The Department requests comments and feedback related to this Draft ETA no later than April 18, 2025. After a review of the feedback, if any, the department will consider the appropriate next steps in the process.

General Questions and/or How to Make a Public Comment

If you wish to make a public comment or have general questions about this Draft ETA, please contact Tiffany Do at TiffanyD@DOR.WA.GOV. Any written comments received will be retained as part of the official Tax Advisory File.