wa-26-21-089: Revenue, Department of — WSR 26-21-089

WSR 26-21-089 (26-21)WSR 26-21-089PROPOSED RULESDEPARTMENT OF REVENUE[Filed October 21, 2026, 7:49 a.m.]Original Notice.Preproposal statement of inquiry was filed as WSR 26-18-086.Title of Rule and Other Identifying Information: WAC 458-40-530 Property tax, forest land—Land grades—Operability classes, 458-40-540 Forest land values—2026, and 458-40-660 Timber excise tax—Stumpage value tables—Stumpage value adjustments.Hearing Location(s): On Tuesday, November 24, 2026, at 2:00 - 3:00 p.m., via Zoom. Please contact Cathy Holder at CathyH@dor.wa.gov for login/dial-in information.Date of Intended Adoption: December 22, 2026.Submit Written Comments to: Tiffany Do, P.O. Box 47453, Olympia, WA 98504-7453, email TiffanyD@dor.wa.gov, fax 360-534-1606, beginning Wednesday, October 21, 2026, 5:30 p.m., by November 24, 2026, 11:59 p.m.Assistance for Persons with Disabilities: Contact Julie King, phone 360-704-5733, TTY 800-833-6384.Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: RCW 84.33.091 requires the department of revenue (department) to revise the stumpage value tables every six months. The department established the stumpage value tables to inform timber harvesters of the timber values used to calculate the timber excise tax, WAC 458-40-660. The values in the proposed rule will apply from January 1 through June 30, 2027.RCW 84.33.140 requires that forest land values be adjusted annually according to the statutory formula contained in RCW 84.33.140(3). The department proposes amending the forest land values rule, WAC 458-40-540, to adjust the table of forest land values in Washington as required by statute. County assessors will use these published land values for property tax purposes in 2027.RCW 84.33.035(5), in relevant part, states ""Forestland" is synonymous with "designated forestland" and means any parcel of land that is five or more acres or multiple parcels of land that are contiguous and total five or more acres that is or are devoted primarily to growing and harvesting timber." RCW 84.34.020(3), in relevant part, states ""Timberland" means any parcel of land that is five or more acres or multiple parcels of land that are contiguous and total five or more acres which is or are devoted primarily to the growth and harvest of timber for commercial purposes." Currently, WAC 458-40-530(1) provides, in pertinent part, "For the purpose of this rule and WAC 458-40-540, the term "forest land" is synonymous with timberland and means all land in any contiguous ownership of twenty or more acres which is primarily devoted to and used for growing and harvesting timber and means land only." The department amends WAC 458-40-530(1) to correct a typo in the acreage found in the meaning of "forestland" to reflect the correct acreage requirement as provided for in the definition of "forestland" under RCW 84.33.035(5) and "timberland" under RCW 84.34.020(3); the incorrect "twenty or more acres" in WAC 458-40-530(1) for "forestland" will be changed to "five or more acres."Reasons Supporting Proposal: This proposal provides the revised stumpage value tables for January 1 through June 30, 2027, and the forest land values for 2027. In addition, the proposal corrected the typo found under WAC 458-40-530(1) for the definition of "forest land." Statutory Authority for Adoption: RCW 82.01.060(2), 84.33.096, 82.33.091, and 82.32.300.Statute Being Implemented: RCW 84.33.091, 84.33.140, 84.33.035(5), and 84.34.020(3).Rule is not necessitated by federal law, federal or state court decision.Name of Proponent: Department of revenue, governmental.Name of Agency Personnel Responsible for Drafting: Tiffany Do, 7435 Linderson Way S.W., Tumwater, WA, 360-534-1558; Implementation and Enforcement: Jeannette Becker, 7435 Linderson Way S.W., Tumwater, WA, 360-534-1599.A school district fiscal impact statement is not required under RCW 28A.305.135.A cost-benefit analysis is required under RCW 34.05.328. A preliminary cost-benefit analysis may be obtained by contacting Tiffany Do, Interpretations and Technical Advice Division, P.O. Box 47453, Olympia, WA 98501-7453, phone 360-534-1558, fax 360-534-1606, TTY 800-833-6384, email TiffanyD@dor.wa.gov.Scope of exemption for rule proposal from Regulatory Fairness Act requirements:Is not exempt.The proposed rule does not impose more-than-minor costs on businesses. Following is a summary of the agency's analysis showing how costs were calculated. The proposed rule does not impose more-than-minor costs on businesses, as it does not propose any new requirements not already provided in statute. The proposed rule does not impose fees, filing requirements, or recordkeeping guidelines that are not already established in statute.October 21, 2026Perry SamansRules CoordinatorRDS-7511.1AMENDATORY SECTION(Amending WSR 10-07-040, filed 3/10/10, effective 4/10/10)WAC 458-40-530Property tax, forest land—Land grades—Operability classes.(1) Introduction. RCW 84.33.130 requires that the department of revenue annually adjust and certify forest land values to be used by county assessors in preparing assessment rolls. These values are based upon land grades and operability classes. The assessors use maps that provide the land grades and operability classes for forest land in Washington.This rule explains how the land grades and operability classes provided in the maps used by the assessors were established. The forest land values are annually updated in WAC 458-40-540. For the purposes of this rule and WAC 458-40-540, the term "forest land" is synonymous with timberland and means all land in any contiguous ownership of ((twenty))five or more acres which is primarily devoted to and used for growing and harvesting timber and means land only.(2) Land grades. The land grades are established based upon timber species and site index. "Site index (plural site indices)" is the productive quality of forest land, determined by the total height reached by the dominant and codominant trees on a particular site at a given age.washington state private forest land gradesspeciessite indexland gradewestside   Douglas Fir136 ft. and over118-135 ft.99-117 ft.84-98 ft.under 84 ft.12345 Western Hemlock136 ft. and over116-135 ft.98-115 ft.83-97 ft.68-82 ft.under 68 ft.123456 Red Alder117 ft. and overunder 117 ft.Marginal forestproductivityNoncommercial677 or 88*2eastside   Douglas Fir&Ponderosa Pine140 ft. and over120-139 ft.96-119 ft.70-95 ft.under 70 ft.Marginal forest productivityNoncommercial345677 or 88*1*1*1*1*1*2*1 These are the site indices for ((one hundred))100 percent stocked stands. Stands with lower stocking levels would require higher site indices to occur in the same land grade.*2 Marginal forest productivity is land grade 7 operability class 3, in the following townships. All marginal forest productivity in other townships is land grade 8.western washingtonWhatcom County - All townships east of Range 6 East, inclusive.Skagit County - All townships east of Range 7 East, inclusive.Snohomish County - All townships east of Range 8 East, inclusive.King County - All townships east of Range 9 East, inclusive.Pierce County - T15N, R7E; T16N, R7E; T17N, R7E; T18N, R7E; T19N, R9E; T19N, R10E; T19N, R11E.eastern washingtonChelan County - All townships west of Range 17 East, inclusive.Kittitas County - All townships west of Range 15 East, inclusive.Yakima County - All townships west of Range 14 East, inclusive.(3) Operability classes. Operability classes are established according to intrinsic characteristics of soils and geomorphic features. The criteria for each class apply statewide.(a) Class 1-Favorable. Stable soils that slope less than ((thirty))30 percent. Forest operations do not significantly impact soil productivity and soil erosion. Forest operations, such as roading and logging, are carried out with minimal limitations.(b) Class 2-Average. Stable soils that slope less than ((thirty))30 percent, but on which significant soil erosion, compaction, and displacement may occur as a result of forest operations.(c) Class 3-Difficult. Soils with one or both of the following characteristics:(i) Stable soils that slope between ((thirty and sixty-five))30 and 65 percent; and(ii) Soils that slope between zero and ((sixty-five))65 percent, but display evidence that rapid mass movement may occur as a direct result of forest operations.(d) Class 4-Extreme. All soils that slope more than ((sixty-five))65 percent.(e) Variations. Unique conditions found in any one geographic area may impact forest operations to a greater degree than the above classes permit. With documented evidence, the department of revenue may place the soil in a more severe class.AMENDATORY SECTION(Amending WSR 26-06-033, filed 2/23/26, effective 2/24/26)WAC 458-40-540Forest land values—((2026))2027.The forest land values, per acre, for each grade of forest land for the ((2026))2027 assessment year are determined to be as follows:landgradeoperabilityclass((2026))2027values per acre11234$((227))233((225))231((211))216((154))15821234((194))199((187))192((180))184((128))13131234((150))154((146))150((144))148((112))11541234((118))121((113))116((112))115((85))8751234((85))87((74))76((73))75((52))5361234((43))44((41))42((41))42((39))407123419191717811AMENDATORY SECTION(Amending WSR 26-14-025, filed 6/22/26, effective 7/1/26)WAC 458-40-660Timber excise tax—Stumpage value tables—Stumpage value adjustments.(1) Introduction. This rule provides stumpage value tables and stumpage value adjustments used to calculate the amount of a harvester's timber excise tax.(2) Stumpage value tables. The following stumpage value tables are used to calculate the taxable value of stumpage harvested from ((July 1 through December 31, 2026))January 1 through June 30, 2027:Washington State Department of RevenueWESTERN WASHINGTON STUMPAGE VALUE TABLE((July 1 through December 31, 2026))January 1 through June 30, 2027Stumpage Values per Thousand Board Feet Net Scribner Log Scale(1)Starting January 1, 2019, there are no Haul Zone adjustments.Species NameSpecies CodeSVA (Stumpage Value Area)Stumpage ValuesDouglas-fir(2)DF1$((390))354 2((558))535 3((543))561 4((588))577 5((542))515 9((376))340 Western Hemlock andOther Conifer(3)WH1((191))156 2((362))314 3((274))237 4((243))245 5((301))275 9((177))142 Western Redcedar(4)RC1-5((1,106))1,198 9((1,092))1,184 Ponderosa Pine(5)PP1-5((136))150 9((122))136 Red AlderRA1-5((372))453 9((358))439 Black CottonwoodBC1-51 91 Other HardwoodOH1-5((45))34 9((31))20 Douglas-fir Poles & PilesDFL1-5((890))788 9((876))774 Western Redcedar PolesRCL1-5((1,880))1,861 9((1,866))1,847 Chipwood(6)CHW1-51 91 RC Shake & Shingle Blocks(7)RCS1-9((352))316 Posts(8)LPP1-90.35 DF Christmas Trees(9)DFX1-90.25 Other Christmas Trees(9)TFX1-90.50 (1)Log scale conversions Western and Eastern Washington. See conversion methods WAC 458-40-680.(2)Includes Western Larch.(3)Includes all Hemlock, Spruce and true Fir species, or any other conifer not listed on this page.(4)Includes Alaska-Cedar.(5)Includes all Pines in SVA 1-5 & 9.(6)Stumpage value per ton.(7)Stumpage value per cord.(8)Includes Lodgepole posts and other posts, Stumpage value per 8 lineal feet or portion thereof.(9)Stumpage value per lineal foot.Washington State Department of RevenueEASTERN WASHINGTON STUMPAGE VALUE TABLE((July 1 through December 31, 2026))January 1 through June 30, 2027Stumpage Values per Thousand Board Feet Net Scribner Log Scale(1)Starting January 1, 2019, there are no Haul Zone adjustments.Species NameSpecies CodeSVA (Stumpage Value Area)Stumpage ValuesDouglas-fir(2)DF6$((270))256 7((284))270 Western Hemlock andOther Conifer(3)WH6((194))192 7((208))206 Western Redcedar(4)RC6((1,089))1,139 7((1,103))1,153 Ponderosa Pine(5)PP6((122))136 7((136))150 Other HardwoodOH61 79 Western Redcedar PolesRCL6((1,504))1,599 7((1,518))1,613 Chipwood(6)CHW61 71 Small Logs(6)SML611 713 RC Shake & Shingle Blocks(7)RCS6-7((352))316 Posts(8)LPP6-70.35 DF Christmas Trees(9)DFX6-70.25 Other Christmas Trees(9)TFX6-70.50 (1)Log scale conversions Western and Eastern Washington. See conversion methods WAC 458-40-680.(2)Includes Western Larch.(3)Includes all Hemlock, Spruce and true Fir species, and Lodgepole Pine in SVA 6-7, or any other conifer not listed on this table.(4)Includes Alaska-Cedar.(5)Includes Western White Pine in SVA 6-7.(6)Stumpage value per ton.(7)Stumpage value per cord.(8)Includes Lodgepole posts and other posts, Stumpage value per 8 lineal feet or portion thereof.(9)Stumpage value per lineal foot.(3) Harvest value adjustments. The stumpage values in subsection (2) of this rule for the designated stumpage value areas are adjusted for various logging and harvest conditions, subject to the following:(a) No harvest adjustment is allowed for special forest products, chipwood, or small logs.(b) Conifer and hardwood stumpage value rates cannot be adjusted below one dollar per MBF.(c) Except for the timber yarded by helicopter, a single logging condition adjustment applies to the entire harvest unit. The taxpayer must use the logging condition adjustment class that applies to a majority (more than 50 percent) of the acreage in that harvest unit. If the harvest unit is reported over more than one quarter, all quarterly returns for that harvest unit must report the same logging condition adjustment. The helicopter adjustment applies only to the timber volume from the harvest unit that is yarded from stump to landing by helicopter.(d) The volume per acre adjustment is a single adjustment class for all quarterly returns reporting a harvest unit. A harvest unit is established by the harvester prior to harvesting. The volume per acre is determined by taking the volume logged from the unit excluding the volume reported as chipwood or small logs and dividing by the total acres logged. Total acres logged does not include leave tree areas (RMZ, UMZ, forested wetlands, etc.,) over two acres in size.(e) A domestic market adjustment applies to timber which meet the following criteria:(i) Public timber - Harvest of timber not sold by a competitive bidding process that is prohibited under the authority of state or federal law from foreign export may be eligible for the domestic market adjustment. The adjustment may be applied only to those species of timber that must be processed domestically. According to type of sale, the adjustment may be applied to the following species:Federal Timber Sales: All species except Alaska-cedar. (Stat. Ref. - 36 C.F.R. 223.10)State, and Other Nonfederal, Public Timber Sales: Western Redcedar only. (Stat. Ref. - 50 U.S.C. appendix 2406.1)(ii) Private timber - Harvest of private timber that is legally restricted from foreign export, under the authority of The Forest Resources Conservation and Shortage Relief Act (Public Law 101-382), (16 U.S.C. Sec. 620 et seq.); the Export Administration Act of 1979 (50 U.S.C. App. 2406(i)); a Cooperative Sustained Yield Unit Agreement made pursuant to the act of March 29, 1944 (16 U.S.C. Sec. 583-583i); or Washington Administrative Code (WAC 240-15-015(2)) is also eligible for the Domestic Market Adjustment.The following harvest adjustment tables apply from ((July 1 through December 31, 2026))January 1 through June 30, 2027:TABLE 9—Harvest Adjustment TableStumpage Value Areas 1, 2, 3, 4, 5, and 9((July 1 through December 31, 2026))January 1 through June 30, 2027Type ofAdjustmentDefinitionDollar Adjustment PerThousand Board FeetNet Scribner ScaleI. Volume per acreClass 1 Harvest of 30 thousand board feet or more per acre.$0.00Class 2 Harvest of 10 thousand board feet to but not including 30 thousand board feet per acre.-$15.00Class 3 Harvest of less than 10 thousand board feet per acre.-$35.00II. Logging conditionsClass 1 Ground based logging a majority of the unit using tracked or wheeled equipment or draft animals.$0.00Class 2 Logging a majority of the unit: Using an overhead system of winch-driven cables and/or logging on slopes greater than 45% using tracked or wheeled equipment supported by winch-driven cables.-$85.00Class 3 Applies to logs yarded from stump to landing by helicopter. This does not apply to special forest products.-$200.00III. Remote island adjustment:  For timber harvested from a remote island-$50.00IV. Thinning  A limited removal of timber described in WAC 458-40-610 (29)-$100.00TABLE 10—Harvest Adjustment TableStumpage Value Areas 6 and 7((July 1 through December 31, 2026))January 1 through June 30, 2027Type ofAdjustmentDefinitionDollar Adjustment PerThousand Board FeetNet Scribner ScaleI. Volume per acreClass 1 Harvest of more than 8 thousand board feet per acre.$0.00Class 2 Harvest of 8 thousand board feet per acre and less.-$8.00II. Logging conditionsClass 1 The majority of the harvest unit has less than 40% slope. No significant rock outcrops or swamp barriers.$0.00Class 2 The majority of the harvest unit has slopes between 40% and 60%. Some rock outcrops or swamp barriers.-$50.00Class 3 The majority of the harvest unit has rough, broken ground with slopes over 60%. Numerous rock outcrops and bluffs.-$85.00Class 4 Applies to logs yarded from stump to landing by helicopter. This does not apply to special forest products.-$200.00Note: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 of revenue.III. Remote island adjustment:  For timber harvested from a remote island-$50.00IV. Thinning  A limited removal of timber described in WAC 458-40-610 (29)-$60.00TABLE 11—Domestic Market AdjustmentClass Area Adjustment AppliesDollar Adjustment Per Thousand Board Feet Net Scribner Scale  SVAs 1 through 5 only:$0.00Note:This adjustment only applies to published MBF sawlog values.(4) Damaged timber. Timber harvesters planning to remove timber from areas having damaged timber may apply to the department of revenue for an adjustment in stumpage values. The application must contain a map with the legal descriptions of the area, an accurate estimate of the volume of damaged timber to be removed, a description of the damage sustained by the timber with an evaluation of the extent to which the stumpage values have been materially reduced from the values shown in the applicable tables, and a list of estimated additional costs to be incurred resulting from the removal of the damaged timber. The application must be received and approved by the department of revenue before the harvest commences. Upon receipt of an application, the department of revenue will determine the amount of adjustment to be applied against the stumpage values. Timber that has been damaged due to sudden and unforeseen causes may qualify.(a) Sudden and unforeseen causes of damage that qualify for consideration of an adjustment include:(i) Causes listed in RCW 84.33.091; fire, blow down, ice storm, flood.(ii) Others not listed; volcanic activity, earthquake.(b) Causes that do not qualify for adjustment include:(i) Animal damage, root rot, mistletoe, prior logging, insect damage, normal decay from fungi, and pathogen caused diseases; and(ii) Any damage that can be accounted for in the accepted normal scaling rules through volume or grade reductions.(c) The department of revenue will not grant adjustments for applications involving timber that has already been harvested but will consider any remaining undisturbed damaged timber scheduled for removal if it is properly identified.(d) The department of revenue will notify the harvester in writing of approval or denial. Instructions will be included for taking any adjustment amounts approved.(5) Forest-derived biomass, has a $0/ton stumpage value.