Christmas trees and cottonwoods

From the 2024 DOR Tax Exemption Study

84.33.170 - Christmas trees and cottonwoods Description Timber excise tax does not apply to Christmas trees and short-rotation hardwoods. However, short-rotation hardwoods that are cultivated by agricultural methods on land classified as timberland are subject to timber excise tax. Purpose Christmas trees and short-rotation hardwoods are agricultural products and are not subject to the timber excise tax on their harvest value. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.205 $0.211 $0.216 $0.222 Local Taxes $0.823 $0.844 $0.866 $0.889 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.193 $0.216 $0.222 Local Taxes $0.000 $0.774 $0.866 $0.889 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Average national Christmas tree sales growth is 1.2% over the past 10 years. - The growth for short-rotation hardwood remains constant. Data Sources - U.S. Department of Agriculture, Agriculture data - Pacific Northwest Christmas Tree Association - Statista.com, 'Christ