Standing timber

From the 2024 DOR Tax Exemption Study

82.45.195 - Standing timber Description Sales of timber harvested within 30 months of a severance contract are exempt from the state or local real estate excise tax. Purpose Providing tax relief to the wood products industry. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $1.950 $2.310 $2.540 $3.580 Local Taxes $0.510 $0.580 $0.650 $0.790 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $2.080 $2.540 $3.580 Local Taxes $0.000 $0.520 $0.650 $0.790 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate for REET transactions mirrors the REET growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. - Growth rate for B&O tax mirrors the B&O growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. - Property sales price growth mirrors the five-year compound annual growth for existing property values by county. - Local revenue estimates use the statewide average local REET rate of 0.479%. - Taxpay