WAC 135-01

Tax upon extractors.

Tax on printers, publishers, highway contractors, extracting or processing for hire, cold storage warehouse or storage warehouse operation, insurance general agents, radio and television broadcasting, government contractors -- Cold storage warehouse defined -- Storage warehouse defined -- Periodical or magazine defined.

Exemptions -- Small harvesters.

PUT- Deductions

Timber harvest operations.Effective 7/15/01.

A statement of purpose and intent with respect to issues involving the forestry products industry

Dump truck operators

Dump Truck Operators The Department has issued ETA 3050.2013. This Excise Tax Advisory (ETA) explains the public utility (PUT), business and occupation (B&O), and retail sales tax reporting responsibilities for various services commonly provided by dump truck operators.

Dump Truck Operators This ETA explains the public utility tax (PUT), business and occupation tax (B&O), and retail sales tax reporting responsibilities for various services commonly provided by dump truck operators. This ETA previously issued on May 24, 2013, is being reissued in order to clarify how to distinguish the taxability of persons hauling for hire from persons hauling construction debris.

Firewood Sellers

Timber Activities - Reduced Business and Occupation Tax Rates

Timber Activities - Reduced Business and Occupation Tax Rates Revised 6/18/07

Timber Activities - Reduced Business and Occupation Tax Rates

Bio-composite Manufacturing Reduced B&O Tax Rate Restored

Trail Grooming - Sales Tax Exemption

Biofuel Manufacturers: Tax Benefits for Manufacturers of Biodiesel Fuel, Biodiesel Alcohol Fuel, Feedstock and Wood Biomass Fuel

The Tax Application for Tree and/or Stump Removal from Existing Orchards

Timber Activities - Reduced Business and Occupation Tax Rates

RETAIL SALES TAX -- LOGGING ROAD.A forest product company's charges to a utility company for logging road construction costs as consideration for the utility company to use the forest product company's road were classified as service activities under Rule 13501(9)(b), and were not subject to retail sales tax.

EXTRACTING B&O TAX -- TIMBER HARVESTING -- With regard to timber transactions, a person is an extractor if it fells, cuts, or takes timber, for sale or for commercial or industrial use, either directly or by contracting with others for the necessary labor or mechanical services from the person's own land, or from the land of another under a right or license granted by lease or contract.A taxpayer was found to be an extractor where it harvested timber pursuant to a profit à prendre to take timber.

RULE 13501, RULE 224; RCW 82.04.280(3) RCW 82.04.220:SERVICE & OTHER BUSINESS ACTIVITIES B&O TAX - PROCESSING FOR HIRE - SCALING OF LOGS - SORTING YARD OPERATIONS - REMOVAL OF BARK.Sorting yard operations including weighing, tagging, banding, appraising and sorting of logs, as well as the scaling of logs and the removal of bark are not manufacturing activities or processing for hire.They are service activities subject to service and other business activities B&O tax.

Rule 135; Rule 13501; RCW 82.08.02565; RCW 82.12.02565; RCW 82.04.100. EXTRACTING VERSUS MANUFACTURING - MACHINERY & EQUIPMENT EXEMPTION. Taxpayer’s purchase of a feller buncher was not exempt from deferred sales tax and/or use tax, since taxpayer did not use it directly in a manufacturing operation. Taxpayer only used the feller buncher to fell, cut and take trees, by definition an extracting activity, and not part of the manufacturing operation of cutting, delimbing, and measuring of trees already felled, cut, or taken.

RULE 13501; RCW 82.08.02565, RCW 82.12.02565: RETAIL SALES AND USE TAX -- MACHINERY AND EQUIPMENT EXEMPTION EXTRACTING TIMBER. The taxpayer’s purchase of a CAT excavator for use in extracting timber did not qualify for the manufacturer’s machinery and equipment exemption.

RULE ; RCW 82.04.260(12) - PREFERENTIAL B&O TAX RATE FOR MANUFACTURING AND SELLING OF TIMBER PRODUCTS - DEFINITION OF "MANUFACTURING": A Taxpayer's activity may constitute "manufacturing" either under the specific definition related to certain timber activities contained in RCW 82.04.120(1)(c), or under the general definition contained in RCW 82.04.120(1) for the purpose of qualifying for the preferential B&O tax rate for manufacturing and selling of timber products.

RULE 13601, RULE 13501; RCW 82.08.02561, RCW 82.12.02561: RETAIL SALES TAX - USE TAX - M&E - LOGGING - FELLER-BUNCHER. To qualify for the M&E exemption, a majority of the feller-buncher’s use must be in a manufacturing operation, not primarily to cut standing trees. Because the logger has not shown that a majority of the use of the feller-buncher was in a manufacturing operation, the logger’s feller-buncher does not qualify for the M&E exemption.