A bill allowing for the extension of time to report timber purchase information to the Department of Revenue was signed by Gov. Jay Inslee on Wednesday.
First introduced by 19th District state Rep. Jim Walsh, R-Aberdeen, the law allows for potential changes in tax policy and market conditions by extending the deadline from July 2018 to July 2021.
“The timber industry continues to play a vital role in our region’s economy,” said Walsh. “This program is a great combination of private sector property interests and public sector agencies. The best sort of cooperation. I’m glad to play a small role in keeping it in place.”
Because changes often occur in tax policy and market conditions, a three-year extension is better than a permanent change, Walsh said in a press release. This extension helps ensure stumpage tax rates are based on actual market value and not on other sources of information. In addition, it protects landowners from unnecessary costs and reduces the risk of misreporting information, he said.
Under the program, private forest landowners share certain information about the value of their land and assets with the Department of Revenue. The program also provides a way to use that information, ensuring fair market valuations without disclosing individual landowner’s proprietary financial information, according to Walsh.
