Tax Type
General Provisions
Description
Tax Bulletin
Topic
Rate of Tax
Date Issued
10-01-1998
Virginia Forest Products Tax
Legislation enacted during the 1998 session of the General Assembly created an alternate method for taxpayers to compute the forest products tax. The alternate method is based upon weight of the forest products, and it can be used at the election of the taxpayer.
Under prior law, the forest products tax was computed based on length or volume measurements of the forest product, which generally required a complicated ``conversion' for forest products measured by weight. The new alternate tax rates were designed to better reflect the current industry method of weight measurement. Taxpayers, however, will still be able to use the existing length/volume tax rates if they prefer.
The alternate tax rates shown below are effective beginning with returns required to be filed for the third quarter period that begins July 1, 1998 and ends September 30, 1998.
Tax Rate Based on Alternate Tax Rate Based on
Forest Product Length or Volume of Logs Weight of Logs Received
Lumber in various sizes and forms
including railroad switch ties, bridge
timber, and dimension stock
a. Pine ........ $1.15 per M ft. B.M. 20 cents per ton for pine
b. Hardwood, cypress, and other species 22 1/2 cents per M ft. B.M. 4 cents per ton for others
Timber sold as logs and not converted into
lumber or other products in the Commonwealth
a. Pine ........ $1.15 per M ft. Log Scale* 20 cents per ton for pine
b. Other species 22 1/2 cents per M ft. Log Scale* 4 cents per ton for others
Logs to be converted into veneer
a. Pine ........ $1.15 per M board ft. Log Scale* 20 cents per ton for pine
b.Other species 22 1/2 cents per M board ft. Log Scale*4 cents per ton for others
Pulpwood, excelsior wood, chemical wood,
bolts or billets, fuel wood, tanbark, and other
products customarily sold by the cord
a. Pine ........ 47 1/2 cents per std cord of 128 Cu. Ft. 20 cents per ton for pine
b. Other species 11 1/4 cents per std cord of 28 Cu. Ft. 4 cents per ton for others
Railroad crossties
a. Pine ........ 3.8 cents per piece 20 cents per ton for pine
b. Other species 1 cent per piece 4 cents per ton for others
Posts, mine ties, mine props, round mine collars,
and other types of timber used in connection with
mining and ordinarily sold by the piece
(Optional tax rate for all sizes shown below-length
rates per 100 pieces are unchanged)
a. Pine ........ $1.045 per M Lineal Ft. 20 cents per ton for pine
b. Other species 24 3/4 cents per M Lineal Ft. 4 cents per ton for others
Piling and Poles of all types 2.31% invoice value 20 cents per ton for pine
(f.o.b. loading pt) 4 cents per ton for others
Keg staves
a. Pine ........ 3.8 cents per std 400 in. bundle 20 cents per ton for pine
b. Other species 1 1/2 cents per std 400 in. bundle 4 cents per ton for others
Keg heads
a. Pine ........ 11 1/2 cents per 100 heads 20 cents per ton for pine
b. Other species 4 1/2 cents per 100 heads 4 cents per ton for others
Tight cooperage (non-pine species only) 4 1/2 cents per 100 staves 4 cents per ton
Tight heads (non-pine species only) 9 cents per 100 heads 4 cents per ton
* (International 1/4" Kerf Rule)
The tax rate per 100 pounds of chips manufactured from roundwood and customarily sold by the pound will remain at 0.986 cents for pine and 0.234 cents for other species.
The forest products tax is payable by every person engaged in business in Virginia as a manufacturer or shipper of forest products for sale, profit, or commercial use. ``Manufacturer' generally means any person who (i) operates a sawmill; (ii) operates a cooperage mill, veneer mill, excelsior mill, paper mill, chipmill, chemical plant, or other processing operation; (iii) purchases from the person who severs crossties, switch ties, mine ties, mine props, and other forest products used in connection with mining, piles, or poles (except fish net poles); or (iv) severs posts, fuel wood, fish net poles, and similar products. ``Shipper' generally means any person in the Commonwealth who sells or ships outside the Commonwealth any forest product in an unmanufactured condition, whether as owner, lessee, woodyard operator, agent, or contractor.
The forest products tax does not apply to individual owners of timber who occasionally sever or cut timber from their own premises for use in construction or repair of their own structures, in home consumption, or in processing of their own farm products.
If you have any questions regarding the new alternate tax rates or need additional information, please contact the Department of Taxation as follows:
Virginia Department of Taxation
Customer Services Section
P.O. Box 1115
Richmond, VA 23218-1115
Phone (804) 367-8098
Rulings of the Tax Commissioner