TITLE 17: CONSERVATION
CHAPTER I: DEPARTMENT OF NATURAL RESOURCES
SUBCHAPTER d: FORESTRY
PART 1535
TIMBER BUYER LICENSING AND HARVEST FEES
SECTION 1535.1 DEFINITIONS
Section 1535.1 Definitions
"Act" means the Timber
Buyers Licensing Act [225 ILCS 735].
"Agent" means any
person acting on behalf of a timber buyer, employed by a timber buyer, or under
an agreement, whether oral or written, with a timber buyer who buys timber,
attempts to buy timber, procures contracts for the purchase or cutting of
timber, or attempts to procure contracts for the purchase of cutting of timber.
[225 ILCS 735/2]
"Department"
means the Illinois Department of Natural Resources.
"Fair market value"
means the price that property would sell for on the open market. It is the
price that would be agreed on between a willing buyer and a willing seller,
with neither being required to act, and both having reasonable knowledge of the
relevant facts.
"Good
standing" means any person who is not:
currently serving a sentence of
probation, or conditional discharge, for a violation of this Act or
administrative rules adopted under this Act;
owes any amount of money
pursuant to a civil judgment regarding the sale, cutting, or transportation of
timber;
owes the Department any
required fee, payment, or money required under this Act; or
is currently serving a
suspension or revocation of any privilege that is granted under this Act. [225
ILCS 735/2]
"Harvest
fee" means:
an amount of money equal to 4% of
the purchase price for timber between a timber buyer and a timber grower;
4% of the minimum fair market stumpage
value, as determined by administrative rule, when the purchase price of timber between
a timber buyer and a timber grower cannot otherwise be determined; or
4% of the minimum fair market stumpage
value as determined by administrative rule utilized by a timber grower that was
produced on land the timber grower owns or operates for sawing into lumber, for
processing, or for resale and such timber or lumber is not the personal use of
the timber grower.
"High value" means
timber that is classified as sawtimber logs or veneer logs.
"Illinois Timber Prices
Survey" means a survey published by the Illinois Department of Natural
Resources that contains the lowest, highest and State average prices for
stumpage and logs delivered to a mill.
"Liability insurance" means
no less than $500,000 in insurance covering a timber buyer's business and agents
that shall insure against the liability of the insured for the death, injury,
or disability of an employee or other person and insurance against the
liability of the insured for damage to or destruction of another person's
property. [225 ILCS 735/2]
"Low value" means timber
which is not classified as sawtimber logs or veneer logs.
"Sawtimber logs" means
trees of commercial species at least 11.0 inches diameter breast height (dbh)
containing at least a 8-foot sawlog or longer, up to a 6-inch top, that is free
of major defects such as branches, forks, or diseased stem and can yield
dimensional lumber.
"Stumpage value" means
the value of timber as it stands uncut in terms of an amount per unit of volume
expressed as dollar value per board foot for that portion of a tree or timber
deemed merchantable by Illinois forest products markets. [740 ILCS 185/1]
"Timber" means trees,
standing or felled, and parts thereof which can be used for sawing or
processing into lumber for building or structural purposes or for the
manufacture of any article. "Timber" does not include firewood,
Christmas trees, fruit or ornamental trees, or wood products not used or to be
used for building, structural, manufacturing, or processing purposes. [225
ILCS 735/2]
"Timber buyer" means
any person licensed or unlicensed, who is engaged in the business of buying
timber from the timber growers thereof for sawing into lumber, for processing
or for resale, but does not include any person who occasionally purchases
timber for sawing or processing for the person's his own use and not for
resale. [225 ILCS 735/2]
"Timber grower" means
the owner, tenant, or operator of land in this State who has an interest in or
is entitled to receive any part of the proceeds from the sale of timber grown
in this State and includes persons exercising authority to sell timber. [225
ILCS 735/2]
"Utilized" means timber harvested
on the land a timber grower owns or operates for sawing into lumber, for
processing, or for resale.
"Veneer logs" means a
roundwood product from which veneer is sliced or sawn and that meets industry
standards of minimum diameter, typically between 12 and 30 inches diameter
breast height (dbh), that is straight, free of bow and crook, with four clear
faces with minimal defect from knots, seams, peck, gum, ring shake, insect
damage, color and mineral that can yield sheets of peeled veneer wood.
"Yearly quarter" means
and are as follows:
Quarter 1 –
January 1 through March 31
Quarter 2 –
April 1 through June 30
Quarter 3 – July
1 through September 30
Quarter 4 –
October 1 through December 31
(Source: Section 1535.1
renumbered to Section 1535.3; new Section 1535.1 added at 48 Ill. Reg. 8643,
effective May 30, 2024)
 | TITLE 17: CONSERVATION
CHAPTER I: DEPARTMENT OF NATURAL RESOURCES
SUBCHAPTER d: FORESTRY
PART 1535
TIMBER BUYER LICENSING AND HARVEST FEES
SECTION 1535.3 TIMBER BUYER APPLICATION AND DEPARTMENT VERIFICATION
Section 1535.3 Timber Buyer
Application and Department Verification
a) All timber buyers shall obtain a license from the Department
before engaging in the business of timber buying. Application for such license
shall be filed on forms provided by the Department and shall contain the
following minimum information:
1) Name, date of birth and address of the applicant;
2) Business name, if any, including if the business is a
corporation, partnership or limited liability company;
3) Principal officers if applicant is a corporation or the
partners if applicant is a partnership;
4) Location of the principal office or place of business of the
applicant;
5) The counties in the State of Illinois which the applicant
proposes to engage in the business of timber buyer;
6) Name, date of birth, and address of all agents of the applicant;
7) A certificate of liability insurance issued by an insurance
company or surety company that is authorized to do business in the State of
Illinois in the principal amount of not less than $500,000 and shall include
the expiration date of the policy; and
8) Any other information as required by the Department in the
application.
b) The Department shall approve the issuance of a timber buyer's
license if all of the following criteria are met:
1) The
applicant has provided all documentation required in the application to the
Department's satisfaction.
2) The
applicant has paid the application fee pursuant to Section 8 of the Act. The
fee is:
A) $125
for residents
B) $300
for non-residents
3) The
applicant has provided proof of liability insurance as required by the Act and
this Part.
4) The
applicant and all agents listed in the application are in good standing with
the Department.
5) The
applicant and all agents listed in the application are 18 years of age or
older.
(Source: Section renumbered from
1535.1 to Section 1535.3 and amended at 48 Ill. Reg. 8643, effective May 30,
2024)
| TITLE 17: CONSERVATION
CHAPTER I: DEPARTMENT OF NATURAL RESOURCES
SUBCHAPTER d: FORESTRY
PART 1535
TIMBER BUYER LICENSING AND HARVEST FEES
SECTION 1535.4 LICENSE AND TIMBER BUYER IDENTIFICATION CARDS
Section
1535.4 License and Timber Buyer Identification Cards
a) License.
If a timber buyer's application is approved by the Department, then a license
shall be issued by the Department and shall contain the following information:
1) name
of the licensee and license number;
2) business
name of the licensee, if any;
3) address
of the licensee;
4) names
of all agents listed in the licensee's application that are in good standing
with the Department; and
5) expiration date of the
timber buyer license.
b) Timber
Buyer Identification Cards. All timber buyer identification cards shall be
issued by the Department to all timber buyers and the timber buyer's agents
that are in good standing with the Department. A timber buyer identification
card shall contain the following information:
1) name
of the timber buyer or agent that the card is issued to;
2) name
and license number of the licensed timber buyer that the timber buyer
identification card is being issued under;
3) address
and telephone number of the licensed timber buyer that the timber buyer
identification card is being issued under; and
4) the
expiration date of the timber buyer identification card.
(Source: Added at 48 Ill. Reg. 8643,
effective May 30, 2024)
| TITLE 17: CONSERVATION
CHAPTER I: DEPARTMENT OF NATURAL RESOURCES
SUBCHAPTER d: FORESTRY
PART 1535
TIMBER BUYER LICENSING AND HARVEST FEES
SECTION 1535.5 RECORDS AND REPORTING
Section 1535.5 Records and
Reporting
a) Records of the Timber
Buyer.
A timber buyer shall retain the
books, accounts, records, proof of ownership, or other documentation required
under this Act or administrative rule used in the conduct of the buyer's
business for a period of 3 years after any purchase, cutting, or transportation
of timber made by the timber buyer or buyer's employee. [225 ILCS 735/9]
b) Harvest Fee – Reporting.
1) When a timber buyer buys timber in this State, the timber buyer
shall file a report to the Department on a report form provided by the
Department. [225 ILCS 735/9a(b)] Each timber purchase shall be fully
reported by the timber buyer no later than 30 days from the end of each yearly
quarter that the timber purchase occurred. Such report shall be on the
Department provided reporting form and shall include the following information:
A) date of purchase. For all purposes, except the payment of
harvest fees, the date of purchase shall be the date the purchase agreement was
made;
B) date of payments;
C) amount of payments;
D) amount of harvest fee;
E) date harvest fee sent to Illinois Department of Natural
Resources;
F) name, address and telephone number of timber grower;
G) quantity of board feet and species of high value timber that is
being reported;
H) estimated
quantity of board feet and species of low value timber that is being reported,
and
I) any other information
as required by the Department.
2) Timber Grower Report of
Utilization
A) Every
timber grower who utilizes timber produced on land the timber grower owns or
operates for sawing into lumber for processing or for resale, shall report
periodically, as required by this Act or administrative rule of the Department,
the quantity, value, and species of timber produced and utilized by the owner
or operator during the reporting period. [225 ILCS 735/9a(d)]
B) Each
Timber Grower Report of Utilization shall be fully reported by the timber
grower no later than 30 days from the end of each yearly quarter that the
timber utilization occurred. Such report shall be on the Department provided
reporting form and shall include the following information:
i) quantity
of board feet and species of the timber produced and utilized by the timber
grower;
ii) the
minimum fair market stumpage value of the timber that was produced on the
timber grower's land and utilized by the timber grower;
iii) parcel
identification number of where the timber was grown;
iv) amount
of harvest fee;
v) date
harvest fee sent to Illinois Department of Natural Resources;
vi) name,
address and telephone number of timber grower; and
vii) any
other information as required by the Department.
3) Liability Insurance
Changes or Cancellation
A) Any
licensed timber buyer that cancels or alters their liability insurance shall
inform the Department in writing within 14 days of the cancellation or
alteration of such policy.
B) Unless
the timber buyer is cancelling or surrendering their license to the Department,
a notification to the Department of a cancellation or alteration of liability
insurance shall also include a new certificate of insurance showing the new or
altered insurance policy that has been issued to the timber buyer. Such new or
altered insurance policy must conform to all requirements of the Act and this
Part.
C) At
any such time as a licensee fails to have the necessary liability insurance, as
required herein, the Department may immediately, and without notice, suspend
the privileges of such licensee. In the event of such suspension, the
Department shall give immediate notice of the same to the licensee and shall
further reinstate such license upon filing with the Department a certificate of
liability insurance that conforms to the requirements of this Act. [225
ILCS 735/4]
(Source: Amended at 48 Ill.
Reg. 8643, effective May 30, 2024)
| TITLE 17: CONSERVATION
CHAPTER I: DEPARTMENT OF NATURAL RESOURCES
SUBCHAPTER d: FORESTRY
PART 1535
TIMBER BUYER LICENSING AND HARVEST FEES
SECTION 1535.10 PAYMENT OF 4% FEE TO DEPARTMENT
Section 1535.10 Payment of
4% Fee to Department
a) All 4% harvest fees required to be paid to the Department by
timber buyers pursuant to Section 9a(a) of the Act and timber growers pursuant
to Section 9a(c) of the Act shall be sent to the Department, along with the
Department provided fee reporting form, no later than 30 days from the end of
each yearly quarter.
b) Any timber buyer purchasing timber from the federal government
shall not be required to deduct the 4% harvest fee from the purchase price,
report such purchases or make payment to the Department of an amount that
equals 4% of the purchase price.
c) Payments are to be made payable to the Department of Natural
Resources and must be in the exact amount shown due on the Department provided
fee reporting form. When any payment is returned to the Department by the
Office of the State Treasurer as non-negotiable, the person issuing the check
or order will be given written demand delivered by certified mail for payment
equal to the original amount by certified instrument, such as a cashier's check
or money order, to the person's last known address.
d) Payments to the Department may be made on an individual sales
or quarterly basis.
e) All timber transactions for which monies are due to the
Department shall be submitted no later than 30 days from the end of the quarter
in which the timber transaction occurred.
(Source: Amended at 48 Ill.
Reg. 8643, effective May 30, 2024)
| TITLE 17: CONSERVATION
CHAPTER I: DEPARTMENT OF NATURAL RESOURCES
SUBCHAPTER d: FORESTRY
PART 1535
TIMBER BUYER LICENSING AND HARVEST FEES
SECTION 1535.15 BONDING DEFINITIONS (REPEALED)
Section 1535.15 Bonding Definitions (Repealed)
(Source: Repealed at 48 Ill.
Reg. 8643, effective May 30, 2024)
| TITLE 17: CONSERVATION
CHAPTER I: DEPARTMENT OF NATURAL RESOURCES
SUBCHAPTER d: FORESTRY
PART 1535
TIMBER BUYER LICENSING AND HARVEST FEES
SECTION 1535.16 BONDING REQUIREMENTS (REPEALED)
Section 1535.16 Bonding Requirements (Repealed)
(Source: Repealed at 48 Ill.
Reg. 8643, effective May 30, 2024)
| TITLE 17: CONSERVATION
CHAPTER I: DEPARTMENT OF NATURAL RESOURCES
SUBCHAPTER d: FORESTRY
PART 1535
TIMBER BUYER LICENSING AND HARVEST FEES
SECTION 1535.20 4% HARVEST FEE DETERMINATION
Section 1535.20 4% Harvest
Fee Determination
a) When a timber buyer buys timber in this State, the timber
buyer and timber grower shall determine the amount to be paid for such timber,
or the value of items to be bartered for such timber, and the timber buyer
shall deduct from the payment to the timber grower an amount which equals 4% of
the purchase price or 4% of the minimum fair market value, as determined
pursuant to administrative rule, when purchase price cannot otherwise be
determined and shall forward such amount to the Department of Natural
Resources. [225 ILCS 735/9a(a)]
EXAMPLE 1:
Harry
Harvester, an Illinois Licensed Timber Buyer, recently won a bid to purchase
$100,000 worth of timber from Larry Landowner, a Timber Grower. Harry would
report the sale to the Department and submit a payment of $4,000 for the
Harvest Fee ($100,000 * 0.04 = $4,000). Larry Landowner would receive a
payment from Harry Harvester of $96,000 for his timber ($100,000 - $4,000 =
$96,000).
EXAMPLE 2:
Harry Harvester,
an Illinois Licensed Timber Buyer, is cutting timber on shares for Larry
Landowner, a Timber Grower. Harry paid Larry $50,000 for the timber removed
from Larry's property. Harry would report the sale to the Department and
submit a payment of $2,000 for the Harvest Fee ($50,000 * 0.04 = $2,000).
Larry Landowner would receive a payment from Harry Harvester of $48,000 for his
timber ($50,000 - $2,000 = $48,000).
EXAMPLE 3:
Larry
Landowner, a Timber Grower, brings a small trailer of logs to Harry Harvester's
sawmill, an Illinois Licensed Timber Buyer. Harry pays Larry $300 for the
logs. Harry would report the sale to the Department and submit a payment of
$12 for the Harvest Fee ($300 * 0.04 = $12). Larry Landowner would receive a
payment from Harry Harvester of $288 for his timber ($300 - $12 = $288).
EXAMPLE 4:
Harry
Harvester, an Illinois Licensed Timber Buyer, sells $5,000 worth of logs he has
purchased from multiple landowners to Sammy Sawmill, who is not an Illinois
Licensed Timber Buyer. Harry Harvester reported the sale to the Department and
paid the harvest fee when he purchased the logs from the landowners and should
not report the sale to Sammy Sawmill as this would result in duplicated
reporting.
EXAMPLE 5:
Larry
Landowner, a Timber Grower, is wanting to sell 20 walnut logs he recently cut
from his property to Sammy Sawmill, who is not an Illinois Licensed Timber
Buyer. Sammy Sawmill should not purchase these logs from Larry Landowner
because he is not an Illinois Licensed Timber Byer. However, Sammy may
purchase these logs if Larry Landowner has already reported the sale and paid
the harvest fee to the Department.
b) The value of timber purchased shall be the gross amount
received by the timber grower and paid by the timber buyer for any interests involved
in the timber purchase.
c) 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 stumpage
or logs to the timber grower 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. The following formula
shall be used: Aggregate Value of Timber x 0.04 = 4% fee to be paid to the
Department.
EXAMPLE:
Larry
Landowner, a Timber Grower, has requested that Harry Harvester, an Illinois
Licensed Timber Buyer, repair his gravel road on his property. In lieu of payment
for this service Larry will allow Harry to remove 20 mature poplar trees from
his property. Estimated stumpage value of the trees removed is $2,000. Harry
would report the sale to the Department and submit a payment of $80 for the
Harvest Fee ($2,000 * 0.04 = $80).
d) If timber is cut from an owner's land without establishing the
amount to be paid or the bartered value of the stumpage or logs, such timber or
logs shall be valued at stumpage value.
e) For timber cut on lands owned by a timber grower or mill and
used by that timber grower or mill in its production process, value will be the
minimum fair market value. The Illinois Timber Prices Survey, for the quarter
when the timber was harvested, may, but is not required to, be used as a guide for
determining value.
EXAMPLE:
Larry
Landowner, a Timber Grower, decides to harvest 100 trees from his property. He
is planning on milling these trees into lumber and selling the lumber to local
purchasers. Larry estimates the stumpage value of these trees to be $12,500.
Larry is required to report this to the Department along with submitting a
payment of $500 for the Harvest Fee ($12,500 * .04 = $500). This report and
payment must be made no later than 30 days from the end of the quarter in which
the timber was harvested. Note, if Larry uses the lumber for personal use he
is not required to submit a report or payment to the Department. Additionally,
if after submitting a report and payment to the Department, Larry later decides
to sell his logs to a sawmill, the sawmill should not report the sale to the
Department nor submit a Harvest Fee as this would result in duplicated
reporting.
(Source: Amended at 48 Ill.
Reg. 8643, effective May 30, 2024)
| TITLE 17: CONSERVATION
CHAPTER I: DEPARTMENT OF NATURAL RESOURCES
SUBCHAPTER d: FORESTRY
PART 1535
TIMBER BUYER LICENSING AND HARVEST FEES
SECTION 1535.25 AGGREGATE VALUE DETERMINATIONS OF TIMBER
Section 1535.25 Aggregate
Value Determinations of Timber
a) Primary
determination of the aggregate value of timber shall be the total dollar value
paid at the first point of sale or change of ownership.
b) Secondary
determination of the aggregate value of timber shall be calculated using the
Doyle Log Rule, as published in the Forestry Handbook Second Edition (1984)
edited for the Society of American Foresters by Karl F. Wenger and published by
John Wiley and Sons, to determine volume. The average dollar amount of the
commercial timber for tree species had it been offered for sale on the open
market will be used for the price. The Illinois Timber Prices Survey for the
time frame of the timber harvest, shall be used to determine the commercial
timber value.
(Source: Amended at 48 Ill.
Reg. 8643, effective May 30, 2024)
| TITLE 17: CONSERVATION
CHAPTER I: DEPARTMENT OF NATURAL RESOURCES
SUBCHAPTER d: FORESTRY
PART 1535
TIMBER BUYER LICENSING AND HARVEST FEES
SECTION 1535.30 VOLUME ESTIMATES
Section 1535.30 Volume
Estimates
a) When volume estimates are used in the determination of value,
the following scales and measurements will be used:
1) Lumber, cooperage, & veneer – Board feet taken from the Doyle
Log Rule as published in the Forestry Handbook Second Edition (1984) edited for
the Society of American Foresters by Karl F. Wenger and published by John Wiley
and Sons.
2) Pulpwood, ton or cord – As established by local market
specifications in use at the time of cutting or delivery to the pulpwood mill.
3) Piling – Linear feet by grade within established
specifications and dimensions in use by the buyer. If such specifications
cannot be determined, the Doyle Log Rule will be used.
4) Other specialized forest products – Established local market
specification or custom in use at the time of harvest as described by the buyer
in a written communication to the Department.
b) Standard forest mensuration procedures shall be used whenever
estimates are substituted for actual measurements provided that the procedure
has a probability of error of less than ten percent.
c) In the establishment of volume-price values, such published
price guides as the Illinois Timber Prices Survey may be used as a guide when
published by a government agency, accredited school of forestry or trade
association.
(Source: Amended at 27 Ill.
Reg. 7761, effective April 21, 2003)
| TITLE 17: CONSERVATION
CHAPTER I: DEPARTMENT OF NATURAL RESOURCES
SUBCHAPTER d: FORESTRY
PART 1535
TIMBER BUYER LICENSING AND HARVEST FEES
SECTION 1535.40 ARBITRATION (REPEALED)
Section 1535.40 Arbitration
(Repealed)
(Source: Repealed at 27 Ill.
Reg. 7761, effective April 21, 2003)
| TITLE 17: CONSERVATION
CHAPTER I: DEPARTMENT OF NATURAL RESOURCES
SUBCHAPTER d: FORESTRY
PART 1535
TIMBER BUYER LICENSING AND HARVEST FEES
SECTION 1535.50 INFORMATION
Section 1535.50 Information
Anyone wishing additional
information concerning this Part, or a supply of Department approved form, may
contact the Department of Natural Resources at the following address:
Department of
Natural Resources
Division of
Forestry
One Natural
Resources Way
Springfield,
IL 62702-1271
DNR.timber@illinois.gov
(Source: Amended at 48 Ill.
Reg. 8643, effective May 30, 2024)
| TITLE 17: CONSERVATION
CHAPTER I: DEPARTMENT OF NATURAL RESOURCES
SUBCHAPTER d: FORESTRY
PART 1535
TIMBER BUYER LICENSING AND HARVEST FEES
SECTION 1535.60 SUSPENSION OR REVOCATION OF TIMBER BUYER'S LICENSE
Section 1535.60 Suspension
or Revocation of Timber Buyer's License
a) Any person violating the provisions of this Part shall, upon finding
of guilt by a court of law, be subject to revocation of license and suspension
of privileges. Any person found to not be in good standing shall have their
timber buyer license and any timber identification card issued to that person
shall be cancelled by the Department pursuant to Section 7 of the Act. [225
ILCS 735/7] Any person's timber buyer's license or timber identification card
may appeal such decision of the Department.
b) Any such revocation, suspension, or appeal of cancellation
procedures shall be governed by the Timber Buyers Licensing Act and by
Department Revocation Procedures (17 Ill. Adm. Code 2530). Any conflict
between this Part and 17 Ill. Adm. Code 2530, this Part shall control.
c) Those persons convicted of a violation of the Act or this Part,
or those found to not be in good standing shall be suspended from obtaining or
renewing a timber buyers license and any such license that has been issued at
the time of the suspension shall be revoked by the Department. The suspension
and revocation timeframes shall be as set in 17 Ill. Adm. Code 2530 for those
convicted of a violation of the Act.
d) For purposes of the Department cancelling a timber buyer
license or timber identification card pursuant to Section 7 of the Act due to
an individual that owes any amount pursuant to a civil judgment regarding
the sale, cutting, or transportation of timber [225 ILCS 735/2], such
determination by the Department must include a final judgement by a court of
the State of Illinois regarding the sale, cutting, or transportation of timber
and that there is any amount of money still owed to an Illinois timber grower.
(Source: Amended at 48 Ill.
Reg. 8643, effective May 30, 2024)
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