Forest land, statutory values

From the 2024 DOR Tax Exemption Study

Det. No. 99-309, 19 WTD 509 (2000) 510 stating he did not want to risk having to pay penalties for deducting any other costs; but his letter requested a finding that his labor costs could be included in his deductions. The return showed a log sale price of $. . . . Taxpayer deducted $. . . for costs to a logging company for “cutting, yarding, loading, trucking.” He also deducted $. . . for charges by a construction contractor for building a temporary road to the site. In addition, he deducted $. . . for the cost of a forest practice permit to cut the timber. The deductions represented 50.66 percent of the total price received for the logs. Because the amount was high, the costs were reviewed by the Department of Revenue’s Forest Tax Division and referred to a Department forester. The forester concluded the costs were reasonable for the area in which the harvest occurred, and the return was accepted as filed. The refund request was forwarded to the Appeals Division for consideration. That taxpayer expressed his frustration that the value of the small harvester’s labor is “not recognized by you as costs that I can deduct from the gross value to determine the taxable stumpage value. .