Forest Excise Tax Return - Private Land - Small Harvester (Page 2 of 4) in pdf

INSTRUCTIONS FOR PAGE 3 (Detail)

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

Harvesting and Marketing Costs (WAC 458.40.610)(10)

are only those costs directly and exclusively associated with

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

harvesting timber and delivering it to the mill.

Block 1 – Your Tax Registration Account Number is the 9-

Examples of Allowable Costs:

digit number printed above your name and address on page 1.

 Falling, bucking and yarding (skidding) costs.

The first 3 digits are 800.

 Loading and hauling costs.

Block 2 – Timber owner’s name.

 Slash disposal costs as required by the permitting

Block 3 – Landowner’s name.

agency.

Blocks 4 through 8 – Transfer the information from page 1.

 Building costs for temporary roads and purchases of

Block 9 – Enter the number of acres logged (rounded to the

temporary easements.

nearest acre) this quarter. Check one box for partial cut or

 Timber sale preparation costs such as cruising, timber

clear cut.

marketing, sale administration and harvest

Block 10 – If harvesting is completed in this quarter, check

administration. These costs need to be clearly

yes; if not, check no.

documented in a written contract with a professional

Block 11 – If the permit has been approved for the EARR as

Forester.

shown on page 1, check yes. If not, check no.

 Timber harvesting permit fee(s).

Block 12 – Enter the net volume (MBF) of scaled conifer

Examples of Costs Which Are Not Allowed:

and hardwood logs and weighed conifer and hardwood logs.

 Property boundary surveys.

Convert the tons to MBF. Add together; this equals the total

volume. This information may be obtained from your scale

 Reforestation costs such as scarification, planting and

tickets, mill receipts, or your logger.

fertilization.

Stumpage Value

 Cost of improvements such as permanent roads or

When the land owner retains ownership of the timber until it

bridges, land clearing and stump removal.

is harvested and sold, the taxable stumpage value is the total

 Equipment purchases and repairs.

log selling price minus the harvesting & marketing costs.

 Cost for labor when performed by timber owner.

If ownership is transferred, a notice of transfer must be filed

 Forest Excise Tax.

with the permitting agency. If the ownership of the timber is

 DNR or county conversion fees.

in question (undocumented), the responsibility for the Forest

Excise Tax defaults to the landowner.

Conversion costs – Timber harvest costs must be

Forest Tax taxpayers are also subject to the Business &

documented separately from land conversion costs.

Occupation (B&O) tax for extracting timber. A small

Conversion work expenses such as stump removal,

harvester is allowed an annual $100,000 deduction on the

permanent roads, land clearing, and excavation are not

B&O tax. A Small Business Credit may apply. Contact us

allowable costs. If a clear separation cannot be documented,

at 1-800-548-8829 with any questions.

use the department allowance.

Block 13 – Sale of Logs

Block 14 – Purchase of Standing Timber - This applies to

the purchase of timber that has not been cut from the stump.

Line 1 – Enter the gross amount paid by the mill

Harvest must occur within 24 months of purchase. Total

(including the logger’s share).

Stumpage Value is the timber purchase price plus other

Line 2a or 2b – Enter either the harvesting and

considerations (permanent roads, reforestation, etc.). If

marketing costs (2a) or department allowance (2b). You

harvest occurs more than 24 months after the purchase, use

cannot apply both. Actual harvesting costs (2a) must be

Block 13 or the published Stumpage Value tables.

used in all instances where documented records are

Total Taxable Stumpage Value – Transfer Total Taxable

available.

Stumpage Value from Block 13 (3) or 14 to page 1 in the

Documented proof of costs must be available for audit.

column that matches with the correct permit number.

When the timber owner cannot document the actual

Block 15 – EARR Credit - If the EARR Credit is allowed

costs, the Department will allow a percentage deduction

for this permit, multiply Total Taxable Stumpage Value by

from the gross log sales. Currently, the Department

0.008, this is the amount of your EARR credit. Transfer this

allowance is thirty five percent (35%). Records must be

amount to the EARR column on page 1 that matches the

available for audit for five years.

correct permit number.

Line 3 – Subtract the harvesting & marketing costs (line

Refer to page 1 to determine Total Amount Due.

2a or 2b) from the gross amount (line 1) and enter on

line 3. Transfer this amount to the Total Taxable

Stumpage Value column on page 1.

Page 2

REV 62 0064

(1/20/11)

Forest Excise Tax Return - Private Land - Small Harvester Page 2

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