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SUBJECTS › ENVIRONMENT › County Timber Revenues - Payments and Taxes
Updated 10/08

County Timber Revenues - Payments and Taxes

Contents

Introduction

This page provides information about payments from the federal government and state government to Washington counties representing a share of the revenues received for the harvesting of timber on those lands within each county. It also provides links to information about the timber excise tax that counties can impose. See also the Forest Lands in Washington Counties page, which provides information about federal and state timber lands in Washington, and the Washington State Association of Counties Timber Program pages.

Federal Payments for Forest Lands in Washington

Payments Received

See Washington State Association of Counties PILT  Calculator Spreadsheet on Timber: Other Documents Page

Payments in Lieu of Taxes (PILT) (PL 97-258)

The federal government makes payments to units of local government as proxies for property taxes on the land base of federal land managing agencies (e.g., Forest Service, Bureau of Land Management, Army Corps of Engineers, U.S. Fish and Wildlife Service, National Park Service, Bureau of Reclamation).

Secure Rural Schools and Community Self Determination Act of 2000 (PL 106-393 and 110-343)

History: Before 2001, the federal government remitted 25 percent of the receipts from timber harvested from national forests within the state to the counties where the forests were located. These amounts were divided equally to be used for public schools, public roads, and other public purposes. The Secure Rural Schools and Community Self-Determination Act of 2000 (PL 106-393) changed the determination of the federal forest distribution amounts. Counties were given the option of a "full payment amount" based on a share of the state’s highest three years from 1986 to 1999 or an amount based on actual receipts. All counties opted for the "full payment amount." The counties receive payments under Title I and Title III of this federal legislation. The Title I amount is then divided to be used 50 percent for schools and 50 percent for schools or roads. The Title III money is to be used for county projects. The entire distribution under Titles I and III is distributed after the end of the federal fiscal year. This is in effect through federal fiscal year 2006. Interest earnings applied to the receipts while residing in the state treasury are distributed to participating counties based on the corresponding distribution of federal receipts. (Source: Washington State Treasurer's Report)  

Current:  On October 3, 2008, H.R. 1424 became Public Law (P.L.) 110-343. Division C, Section 601 of H.R. 1424 reauthorized the Secure Rural Schools and Community Self-Determination Act of 2000 by amending the original law (P.L. 106-393) with some significant changes.   See U.S. Forest Service Payments to States  and New SRS Act

By November 14, 2008, each State must submit to the Forest Service the following information:
(1) each county’s election to receive a share of the State payment under the SRS Act, or a share
of the 25-percent payment; and (2) for each county that elects to receive a share of the State
payment under SRS, the county’s allocations for Title II and Title III projects. Counties in States
that receive transition payments also must make these elections and allocations.

Funding

Military Forest Receipts (Public Law 97-99)

The State Treasurer receives receipts from the federal government and remits to counties a percentage of net proceeds on the sale of timber and forest products from military installations. Fifty percent of the moneys distributed are to be used for public schools and the remaining fifty percent for public roads. (Source: Washington State Treasurer's Report)

  • 10 USC 2665 (e) - Armed Forces - General Military law - Sale of certain interests in land, logs (Cornell Law Institute)
  • Explanation of PL 97-99 Distributions - State Treasurer, Revenues for Distribution
  • Distribution of military forest receipts in 2004 was listed as $586,775 (Clark, Pierce, Spokane, and Thurston Counties) in the State Treasurer's Monthly Report, January 2005.  See Federal Funds Distributed to Counties.

Washington Forest Trust Revenue Distribution Counties

A portion of the monies derived from the lease of state lands held in trust or from the sale of forest products, oils, gases, coal, minerals, or fossils, or from land designated as state forest land is distributed twice monthly by the State Treasurer to the counties in which the lands are located as certified by the Department of Natural Resources. Interest earnings are distributed to participating counties monthly. (Source: Washington State Treasurer's Monthly Report)

Forest Board Transfer Trust Lands

When a revenue-generating activity such as a timber sale occurs on the lands, the DNR may deduct up to 25 percent of the proceeds for administration, reforestation, and protection of the forest lands. The balance of the revenue goes to the respective counties and is distributed among various funds in the same manner as general tax dollars are distributed.

  • Forest Board Transfer Lands - Joint Legislative Audit and Review Committee, Report 96-5, 1996
  • All County Quarterly Income Reports - Each quarter, DNR reports the earned income and projected revenue from State Forest Lands (formerly known as Forest Board lands) in several Washington counties -  Department of Natural Resources
  • Forest Board Transfer Lands & Their Fiscal Role with Junior Taxing Districts - A presentation prepared by Rod Fleck and Kyle Hjelmseth, City of Forks, 2003
  • DNR 2007 Annual Report to Trust Beneficiaries per RCW 79.10.010  in Department of Natural Resources Annual Report, page 16 of report.

Forest Board Purchase Lands

Forest Board purchase lands are acquired by the state by either purchase or gift. Fifty percent of the revenues from the sale of timber or other products from these lands goes to DNR's Forest Development Account and 50 percent goes to the state general fund for the support of public schools and to the counties with the same distribution as the forest board transfer land revenues. See RCW 79.22.050 - Sales and leases of timber, timber land, or other products thereon.

Timber Tax Revenues

Timber (Forest) Excise Tax

Counties are authorized to impose an excise tax on each person engaging in business as a harvester of timber on private land. This tax, based on the stumpage value of timber harvested for sale or for commercial or industrial use, is credited against the state's excise tax. The Department of Revenue certifies to the State Treasurer the amount of the excise tax collected to be distributed to participating counties each quarter. (Source: Washington State Treasurers Report)

Return to Forest Lands in Washington Counties