The Louisiana Forestry Commission and the Louisiana Tax Commission set stumpage values to be used for timber severance tax computations. These values are in effect for January 1, 2010 through December 31,  2010.

The sawtimber and chip-n-saw regular severance tax rate is 2 1/4 percent of the sawtimber stumpage value. The pulpwood regular severance tax rate is 5 percent of the stumpage value.

Product            2010 Stumpage Value                        Severance Tax

Pine sawtimber       $271.55/mbf$33.94/ton    $6.11/mbf$.76/ton

Hdwd sawtimber    $300.99/mbf $31.68/ton   $6.77/mbf $.71/ton

Chip-n-saw             $74.22/cord $27.49/ton    $1.67/cord $.62/ton

Pine pulpwood        $25.59/cord $9.66/ton     $1.28/cord $.48/ton

Weyerhaeuser Company  today announced that its board of directors has determined that conversion to a real estate investment trust (REIT) would best support the company’s strategic direction.

“Our company will be enhanced by the REIT structure,” said Dan Fulton, president and chief executive officer. “This conversion will position us to be more competitive in our timberlands business. In addition, we are able to convert with our existing business mix of Timberlands, Wood Products, Cellulose Fibers and Real Estate.”

Chuck Williamson, chairman, said “The board has not set a date for the conversion, but the earliest and most likely date would be for the year 2010 based on circumstances as we know them today.”

Factors the board will consider in determining the timing of converting to a REIT include the state of the economic recovery, changes in tax policy including shareholder tax rates and the distribution of earnings and profits required under tax laws for REIT election.

By the end of the year of conversion, Weyerhaeuser must issue a special, taxable dividend to stockholders of its undistributed earnings and profits. As of the beginning of 2010, Weyerhaeuser expects earnings and profits to total just under $6 billion.

Weyerhaeuser said it intends to pay a significant portion of the dividend in stock. This will require shareholder approval to increase the authorized number of shares at the annual shareholder meeting in April. Shareholders will receive information on this proposal, and the proposed governance changes announced earlier this morning, in the 2010 proxy statement to be mailed in February.

Loggers must apply to Louisiana Department of Revenue for Certification as a Manufacturer to claim 100% exclusion from state sales tax on purchases of equipment. Loggers must have the current form; the old document will not be accepted.

Loggers and forest products industry need to complete the Application for Certification as a Manufacturer for the purpose of Sales/Use Tax Exclusion from the Louisiana Department of Revenue.  Beginning October 1, 2009, Department of Revenue requires the equipment seller to hold a copy of this certificate from the purchaser before granting any state sales tax exemption. Local sales taxes may still be collected. The equipment seller could be liable for the sales tax if he can’t produce a copy of the buyer’s Exemption Certificate.

Loggers and forest products industry can access the form by going to www.rev.state.la.us, click Tax Forms, click Sales Tax under Business, click 2009, click Exemption Certificates under PDF Documents, find R- 1070 and click Forms and Instructions. (Or use this link: http://revenue.louisiana.gov/sections/taxforms/default.aspx?code=SLS&year=2009 - typeApplicationsforExemption

Logging and forest industry equipment are completely exempt from state sales tax with the proper certification certificate from the Department of Revenue.