In 1984, the State Legislature authorized counties to impose a four (4) percent timber excise tax on timber harvested on private lands but not from timber harvested on public lands (Chapter 84.33 RCW). The tax was enacted by Clallam County pursuant to Ordinance 239, 1984.

In 2004, the State Legislature authorized counties to impose a timber excise tax that includes timber harvested from public lands (Chapter 177, Laws of 2004) with the tax rate phased in over ten (10) years and an effective date of January 1, 2005.

There is a five (5) percent tax imposed by the State on timber harvested from private and public lands. The County tax will be credited against the State tax, to maintain the current total rate of five (5) percent without increasing the tax burden imposed on timber harvesters.