TITLE 17: CONSERVATION
CHAPTER I: DEPARTMENT OF NATURAL RESOURCES
SUBCHAPTER d: FORESTRY
PART 1535 TIMBER BUYER LICENSING AND HARVEST FEES
SECTION 1535.20 VALUE DETERMINATION


 

Section 1535.20  Value Determination

 

a)         The value of timber purchased shall be the gross amount received by the owner and paid by the timber buyer for any interests involved in the timber purchase.

 

b)         When timber is purchased in whole or in part by barter, the fair market value of the bartered item or service used as payment for timber or logs to the timber owner shall be used in determining the harvest fee due the Department of Natural Resources.  Any payment made from any source shall require a 4% harvest fee payment to the Department.

 

c)         If timber is cut from an owner's land without establishing the amount to be paid or the bartered value of the timber or logs, such timber or logs shall have the value set at the point in the marketing system where ownership changes at the mill or primary processing plant.

 

1)         When harvested logs (used for lumber, cooperage, piling or veneer) are piled and sold but not delivered to the primary plant site by the timber owner, a deduction of $100 per thousand board feet or 50% of the purchase price, whichever is less, may be taken from the purchase price paid by the timber buyer prior to determining the 4% harvest fee.  This deduction is not available to persons in the business of timber buying or acting as a timber buyer.

 

2)         When logs (used for lumber, cooperage, piling or veneer) are sold and delivered to the primary plant site by the timber owner, a deduction of $125 per thousand board feet or 50% of the purchase price, whichever is less, may be taken from the purchase price paid by the timber buyer prior to determining the 4% harvest fee.  This deduction is not available to persons in the business of timber buying or acting as a timber buyer.

 

3)         For pulpwood purchased by weight and delivered to the mill by the timber owner, 50% of the purchase price may be deducted prior to determining the 4% harvest fee.

 

d)         Value determination methods at the mill site, other than for logs for lumber, cooperage, piling, veneer, or pulpwood, shall be determined by the Department on request.  All requests must state in detail the nature of the product and method of determining mill site value.

 

e)         For timber cut on lands owned by a timber buyer or mill and used by that timber buyer or mill in its production process, value will be determined as a stumpage value.  The Illinois Timber Prices Survey, for the quarter when the timber was harvested, may be used as a guide.  ("Illinois Timber Prices" survey published by the Illinois Agricultural Statistics Service and the Illinois Department of Natural Resources.)

 

(Source:  Amended at 27 Ill. Reg. 7761, effective April 21, 2003)