Form Sev-400t - Severance Tax Estimate - Timber - 2005
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1SIGNATURE O F TAXPAYER O R PREPARER
WVISEV400T
REV 7/05
WEST VIRGINIA SEVERANCE TAX ESTIMATE
-
TIMBER
DATE
I
I
GENERAL
INFORMATION
1
,
'
i..
i ~ h i s form
is
to
be
used to report the gross income for the production o f timber only.
If
you produce coal you must report o n form
WV/SEV-400C.
If
yoy
'produce any other natura! resource you must report o n form WV!SEV-400.
This
form
is
for quarterly
or
monthly reporting only,
i !
cannot
be used for
a
f i n d
or annual return. The exemption of
$41.67 per
month
can
not b e claimed on this return; however, the full
$500
exemption m ay
be
claimed o n the annual
return
if
you are registered
to
d o business for the entire reporting year.
INSTRIJCTIONS
1
'
I
MAKE
CHECK PAYABLE
AND
MAILTO:
STATE
TAX
DEPARTMENT
PROWCERS OF
COMMUST FILE
WVIs01-raoc
FOR A U OTHER
NATURAL
RESOURCES
USE WISEV4W
REPORT PRODUCTION O F TIMBER ONLY
I
IF BUSINESS WAS DISCONTINUED
G I V E
M T E AND IF SOLO NAME AND ADORESS
OF
N E W
OWNER
Severanca tax on timber is imposed on the gross value of the timber et the point the tree is cut and delimbed. The tax
is calculated by multiplying the gross value bj the tax rate of
3.22%.
The
gross value of the timber is the grgss
proceeds of saie if it Is sold at the point it is cut and delimbed. Report the gross value on Line
1
of the retum. In many
instances, there Is not a sale of the timber at the point of cutting and delimbing. In these instatices the gross value can
be determined in one of three ways.
(1) Use of a value that corresponds as closely as possible to the gross proceeds from the sale of similar products of like
quality or character.
(2) In the absence of such sales the gross value may be determined using a cost basis. The value of the timber would
be the sum of all costs attributable to the production of timber, including direct and indirect overhead costs and a
reasonable mark-up on the timber. Detailed records must be kept to support the value used for severance tax pur-
poses.
(3)
Use of the percentage
method.
To apply the percentage method of determining the gross value subject to tax, the
timber producer must find the activity that is similar to his situation, and apply the apporpriate percentages to his gross
proceeds of sales.
,,
TIMBER
I
A person who cuts timber and takes to wlleciion point in woods
A person who cuts timber and delivers to sawmill for sale
Amount received from sale X
75%
Amount received from saie X
50%
TAXABLE AMOUNT
PERIOD ENDED
I
INTERNAL AUDITING DIVISION
A
person who cuts timber and processes into other products
Amount rece~ved from sale X
25%
I
I
PO. BO X
425
CHARLESTON,
WV
253226425
If you feel you are not responsible for this tax, please notify this office, in writing, with a complete description of yoclr
FOR ASSISTANCE CALL: (304) 558-3333
timber acDwties If you are a contract logger, please supply the company you contract for Non-resident producers
TOLL FREE 1-8W-982-8297
must post a bond and supply a copy of the notice of intent to sever timber.
Visit our web site at:
2.
INVESTMENTS CREDITS
............ .
.
...........
DUE DATE
2
.
RATE
,0322
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F
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