State Tax Laws > Property Taxes > Summary > Washington
For the complete text of Washington statutes and other property tax information please refer to the Washington Department of Revenue.
Washington's forest tax law is really two complimentary tax systems: (1) a "current use" property tax on the land, and (2) an excise or "yield" tax on timber.
Classified and Designated Timberland - Legislative changes made in 2001 combined classified and designated forest land into one category called designated forest land. If the assessor designates the property as forest land or the application for designation is approved, the property is assessed at forest land values as designated forest land (current use). To qualify for designation, the applicant must own at least 20 acres (not including one acre for a residence) and the land must be used primarily for growing and harvesting timber. The assessor may require the applicant to include a forest management plan with the application.
Open Space Timber - People who own less than 20 acres required for classification or designation under the Forest Tax Law may qualify for classification as "timberlands" under the Open Space Tax Law. A minimum of 5 acres is required for classification as timberlands. Once the land is classified under this law it is assessed for tax purposes in exactly the same manner as "classified" or "designated" land under the Forest Tax Law.
Removal and Compensating Tax for Classified and Designated Timberland - Designated land is assessed every year as forest land until the assessor removes the classification or the landowner requests removal. Assessors may remove the property from forest land designation if they feel that the property is no longer being managed for forest uses. Designation will also be revoked if the property is sold to a buyer who does not want to use it for forestry. In all cases, the property owner has the right to appeal a removal to the county Board of Equalization.
If the designation is removed either by the assessor or by request of the landowner, the owner may be required to pay a compensating tax to the county. The compensating tax is the difference in taxes between forest land assessment and "highest and best use" assessment, multiplied by the number of years the property has been classified as forest land up to a maximum of ten years.
Removal and Compensating tax for "Open Space Timber" - Once classified, land may not be used for any other purpose for at least ten years. Eight years from the classification date, the owner may request withdrawal, and the request is irrevocable. The assessor will withdraw the land after two assessment years from the time of request. The owner then becomes liable for an additional tax which is the difference between the taxes paid and the taxes which would have been paid but for the open space classification, for the preceding seven years plus interest. In the event of a land use change that is not in compliance with the authorized withdrawal after eight years, the owner becomes liable for the additional tax plus a 20% penalty.
Valuation and Assessment:
Having land in any of these three categories allows the land to be assessed under the "Forest Land Values" (WAC 458-40-540). Forest land values are determined by the state Department of Revenue and vary depending on the productivity of the soil and other factors. The values for each productivity class are updated annually by the Department of Revenue using a formula which ties changes in land values to the long term trend in timber values.
In preparing the assessment rolls as of January 1st, the assessor lists each parcel of forest land at a value per acre with respect to the grade and class as adjusted and computes the assessed value of the land by using the same assessment ratio applied generally in computing the assessed value of other property in the county (RCW 84.33.120; WAC 458-40-510).
The forest land values, per acre, for each grade of forest land for the 2005 assessment year are determined to be as follows: (WAC 458-40-540)
| Land Grade | Operability Class | 2005 Values (rounded) |
| 1 | 1 | 203 |
| 2 | 201 | |
| 3 | 190 | |
| 4 | 138 | |
| 2 | 1 | 172 |
| 2 | 167 | |
| 3 | 160 | |
| 4 | 115 | |
| 3 | 1 | 135 |
| 2 | 131 | |
| 3 | 130 | |
| 4 | 99 | |
| 4 | 1 | 103 |
| 2 | 100 | |
| 3 | 99 | |
| 4 | 76 | |
| 5 | 1 | 75 |
| 2 | 68 | |
| 3 | 67 | |
| 4 | 46 | |
| 6 | 1 | 38 |
| 2 | 35 | |
| 3 | 35 | |
| 4 | 33 | |
| 7 | 1 | 17 |
| 2 | 17 | |
| 3 | 16 | |
| 4 | 16 | |
| 8 | 1 |
The land grades are established based upon timber species and site index. "Site index (plural site indices)" is the productive quality of forest land, determined by the total height reached by the dominant and codominant trees on a particular site at a given age.
Washington State Private Forest Land Grades:
| Species | Site Index | Land Grade | |
| Westside | |||
| Douglas Fir | 136 ft. and over | 1 | |
| 118 - 135 ft. | 2 | ||
| 99 - 117 ft. | 3 | ||
| 84 - 98 ft. | 4 | ||
| under 84 ft. | 5 | ||
| Western Hemlock | 136 ft. and over | 1 | |
| 116 - 135 ft. | 2 | ||
| 98 - 115 ft. | 3 | ||
| 83 - 97 ft. | 4 | ||
| 68 - 82 ft. | 5 | ||
| under 68 ft. | 6 | ||
| Red Alder | 117 ft. and over | 6 | |
| under 117 ft. | 7 | ||
| MFP | 7 or 8 (*2) | ||
| NC | 8 (*3) | ||
| Eastside | |||
| Douglas Fir & Ponderosa Pine | 140 ft. and over | 3 (*1) | |
| 120 - 139 ft. | 4 (*1) | ||
| 96 - 119 ft. | 5 (*1) | ||
| 70 - 95 ft. | 6 (*1) | ||
| under 70 ft. | 7 (*1) | ||
| MFP | 7 or 8 (*2) | ||
| NC | 8 (*3) |
*1 These are the site indices for one hundred percent stocked stands. Stands with lower stocking levels would require higher site indices to occur in the same land grade.
*2 (MFP) Marginal forest productivity will be land grade 7 operability class 3, in the following townships. All MFP in other townships will be land grade 8.
| Western Washington |
| Whatcom County--all townships east of Range 6 East, inclusive. |
| Skagit County--all townships east of Range 7 East, inclusive. |
| Snohomish County--all townships east of Range 8 East, inclusive. |
| King County--all townships east of Range 9 East, inclusive. |
| Pierce County--T15N, R7E; T16N, R7E; T17N, R7E; T18N, R7E; T19N, R9E; T19N, R10E; T19N, R11E. |
| Eastern Washington |
| Chelan County--all townships west of Range 17 East, inclusive. |
| Kittitas County--all townships west of Range 15 East, inclusive. |
| Yakima County--all townships west of Range 14 East, inclusive. |
*3 (NC) Noncommercial
Operability Classes:
Class 1--Favorable. Stable soils that slope less than thirty percent. Forest operations do not significantly impact soil productivity and soil erosion. Forest operations, such as roading and logging, are carried out with minimal limitations.
Class 2--Average. Stable soils that slope less than thirty percent, but on which significant soil erosion, compaction, and displacement may occur as a result of forest operations.
Class 3--Difficult. Soils with one or both of the following characteristics:
(a) Stable soils that slope between thirty and sixty-five percent; and
(b) Soils that slope between zero and sixty-five percent, but display evidence that rapid mass movement may occur as a direct result of forest operations.
Class 4--Extreme. All soils that slope more than sixty-five percent.
Variations. Unique conditions found in any one geographic area may impact forest operations to a greater degree than the above classes permit. With documented evidence, the department may place the soil in a more severe class.
Yield Tax: (RCW 84.33)
Harvesting timber on either private or publicly owned land is subject to a 5% excise (yield) tax on the stumpage value of timber harvested for sale or for commercial or industrial use.
Determining stumpage value:
The taxable value of stumpage is determined differently for large harvesters than for small harvesters. In addition public timber is valued by a different method than private timber.
Small Harvester Option - Anyone who cuts less than 2 million board feet in a calendar year is considered a small harvester. Small harvesters may pay tax on the actual amount paid for stumpage or the actual amount received from the sale of logs minus the costs of felling the timber and delivering the logs to the buyer. (Sec 84.33.074)
Larger Harvester Option - Large timber harvesters must calculate taxable stumpage value by using stumpage price tables published twice a year by the Department of Revenue. These tables are mailed to the taxpayer along with reporting forms. They list stumpage values by species and quality for different market areas (Stumpage Value Areas) across the state. The current stumpage price tables are available from the Washington Department of Revenue. (NOTE: Small harvesters may choose to use the value schedules instead of actual stumpage price.)
The timber excise tax must be paid by the timber harvester. The law defines a timber harvester as anyone who fells, cuts or takes timber for sale or for commercial or industrial use. Timber is considered harvested at the time the volume by species is first determined, that is at the time of scaling. Therefore, the person who owns the timber at the time is is scaled is the timber harvester and the one who must pay the tax.
The tax must be paid quarterly on all timber harvested during a calendar quarter. The reporting deadlines are as follows:
| Quarter of Harvest | Tax Due |
| 1st Qtr. Harvest (January, February, March) | April 30 |
| 2nd Qtr. Harvest (April, May, June) | July 31 |
| 3rd Qtr. Harvest (July, August, September) | October 31 |
| 4th Qtr. Harvest (October, November, December) | January 31 |
Timber harvest tax credit (Sec. 84.33.0775)
A taxpayer is allowed a credit against the tax imposed under RCW 84.33 for timber harvested on and after January 1, 2000, under a forest practices notification filed or application approved under RCW 76.09.050 and subject to enhanced aquatic resources requirements.
(a) For a person other than a small harvester who elects to calculate tax under RCW 84.33.074, the credit is equal to the stumpage value of timber harvested for sale or for commercial or industrial use multiplied by eight-tenths of one percent.
(b) For a small harvester who elects to calculate tax under RCW 84.33.074, the credit is equal to sixteen percent of the tax imposed under this chapter.
The amount of credit claimed by a taxpayer under this section shall be reduced by the amount of any compensation received from the federal government for reduced timber harvest due to enhanced aquatic resource requirements. If the amount of compensation from the federal government exceeds the amount of credit available to a taxpayer in any reporting period, the excess shall be carried forward and applied against credits in future reporting periods. This subsection does not apply to small harvesters as defined in RCW 84.33.073.
Forest Fire Protection Tax
If any owner of forest land within a forest protection zone neglects or fails to provide adequate fire protection as required by RCW 76.04.600, the department shall provide such protection and shall annually impose the following assessments on each parcel of such land:
(a) A flat fee assessment of fourteen dollars and fifty cents; and
(b) twenty-two cents on each acre exceeding fifty acres.
Assessors may, at their option, collect the assessment on tax exempt lands. If the assessor elects not to collect the assessment, the department may bill the landowner directly.
An owner who has paid assessments on two or more parcels, each containing fewer than fifty acres and each within the same county, may obtain the following refund:
(a) If all the parcels together contain less than fifty acres, then the refund is equal to the flat fee assessments paid, reduced by the total of (i) fourteen dollars and (ii) the total of the amounts retained by the county from such assessments under subsection (5) of this section.
(b) If all the parcels together contain fifty or more acres, then the refund is equal to the flat fee assessments paid, reduced by the total of (i) fourteen dollars, (ii) twenty-two cents for each acre exceeding fifty acres, and (iii) the total of the amounts retained by the county from such assessments under subsection (5) of this section.