Bulletin Number
VTB 84-12
Tax Type
Forest Products Tax
Description
1984 Legislative Changes in Forest Products Tax
Topic
Basis of Tax
Rate of Tax
Date Issued
04-12-1984
1984 Legislative Changes in Forest Products Tax
The 1984 Session of the General Assembly passed HB 674 which amends § 58-838.5:2 of the Code of Virginia. The purpose of the amendments is to increase those portions of the forest products tax which relate to hardwood, cypress and other species of timber products and to include cedar forest products in the other species category. The effective date of the tax increase is July 1, 1984.
The severance tax rates for hardwood, cypress, and other species, (hereinafter other species), are as follows:
Rate of Tax
Product Effective July 1, 1984
Lumber, Other Species 22 1/2 cents/MBF
Logs, Other Species 22 1/2 cents/MBF
(Int'l. 1/4" Kerf Rule)
Veneer Logs, Other Species 22 1/2 cents/MBF
(Int'l. 1/4" Kerf Rule)
Pulpwood, etc., Other Species 11 1/4 cents/Std. Cord
Railroad Crossties, Other Species 1 cents/Piece
Chips, Other Species 0.234 cents/100 lbs.
Posts, Props, etc., Other Species
4' Long, Other Species 9 cents/100 Pieces
4' - 8' Long, Other Species 14 1/4 cents/100 Pieces
Over 8' Long, Other Species 18 cents/100 Pieces
OR
Taxpayer may elect to pay taxes
on products in this item as follows:
Posts, Props, etc., Other Species 24 3/4 cents/M lineal ft.
Piling and Poles, Other Species 2.31% on invoice value
f.o.b. loading point
Keg Staves, Other Species 1 1/2 cents/400" Bundle
Keg Heads, Other Species 4 1/2 cents/100 Keg Heads
Tight Cooperage, Other Species 4 1/2 cents/100 Staves
Tight Cooperage, Other Species 9 cents/100 Keg Heads
Any other type of forest products not listed, other species The State Tax Commissioner shall determine a fair unit tax rate, based on the cubic foot wood volume relationship between the product and the unit rate of cedar or hardwood lumber.
All rates on pine forest products remain unchanged.
This amendment also changes the annual forest products tax for persons who sever for sale 100 or less cords of fuel wood, or 500 or less posts for fish net poles during any one calendar year. The tax on such products prior to amendment is applicable for the first 6 months of 1984 and the amended increased rates are applicable for the last 6 months of 1984.
The 1984 rates applicable to other species for such small severers who file forest products tax annually are as follows:
Fuel Wood, Other Species (1/2 X 3 3/4 cents plus 1/2 X 11 1/4 cents) =
7 1/2 cents/Cord 128 cu. ft.
Posts, Other Species
4' Long (1/2 X 3 cents plus 1/2 X 9 cents) =
6 cents per 100 pieces
4' - 8' Long (1/2 X 4 3/4 cents plus 1/2 X 14 1/4 cents) =
9 1/2 cents per 100 pieces
Over 8' Long (1/2 X 6 cents plus 1/2 X 18 cents) =
12 cents per 100 pieces
OR
Taxpayer may elect to pay taxes on products in this item as follows:
Posts, Props, etc., Other Species (1/2 X 8 1/4 cents plus 1/2 X 24 3/4 cents) =
16 1/2 cents per 1000 lineal ft.
For the years after 1984, the increased rates for such small severers of hardwood, cypress and other species of timber products will be applicable for the entire year. The tax rates for the year 1985 are as follows:
Fuel Wood, Other Species. 11 1/4 cents/Cord 128 Cu. ft.
Posts, Other Species
4' Long 9 cents/per 100 pieces
4' - 8' Long 14 1/4 cents/per 100 pieces
Over 8' Long 18 cents/per 100 pieces
OR
Taxpayer may elect to pay taxes
on products in this item as follows:
Posts, Props, etc., Other Species 24 3/4 cents per 1000 lineal ft.
Anyone having questions regarding this bulletin should contact the Department of Taxation, P.O. Box 6-L, Richmond, Virginia 23282.
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