California Lumber Tax Dropped
A proposed 1% additional sales tax on selected lumber products that was part of Governor Jerry Brown’s attempt to close a state budget gap has been dropped, much to the relief of California LBM dealers. The tax pitted retail lumber sellers against lumber producers by shifting fees the timber industry currently pays to its customers.
The 1% tax would have been used to fund the regulatory activities of four state agencies involved in reviewing and monitoring timber harvest plans that are required for all private and public timber cutting. Currently, those costs are paid by the landowners and from state general fund expenditures. The proposal to shift the program costs to the retail lumber dealers was supported by the California Forestry Association.
The Lumber Association of California and Nevada (LACN) lobbied hard against the tax, citing the additional cost and complexity of setting up a new tax collection system. It was also unclear exactly which wood products would be subject to the tax, the LACN pointed out.
LACN disagreed with that proposal and advocated that the fees should remain as they are and not be an additional cost to consumers. The timber industry wanted the fees to be passed on to the end user to lessen the competition they face from timber produced outside California and thus not subject to California regulations.
From HBS Dealer: hbsdealer.com.
Latest News
B.C. Sawmill Study Makes Surprise Finding On Using Moisture To Prevent Explosions
The smallest-sized wet wood dust is just as explosive as dry wood dust from B.C. sawmills,...
Wood Science 101: Where Does Lumber Come From?
One of the more interesting phenomena of today's world is the insulation we have from the source...
U.S. Homebuilders Face High Lumber Prices
Total housing starts rose 35% year-over-year in the first quarter of this year, according to data...
J.D. Irving Sawmills Division Invests To Open Maine Sawmill, Creating 60 Jobs
J.D. Irving, Limited Sawmills Division announced today that it will invest $30 million in a new...
Find Us On Social
Newsletter
The monthly Timber Processing Industry Newsletter reaches over 4,000 mill owners and supervisors.
Subscribe/Renew
Timber Processing is delivered 10 times per year to subscribers who represent sawmill ownership, management and supervisory personnel and corporate executives. Subscriptions are FREE to qualified individuals.
Advertise
Complete the online form so we can direct you to the appropriate Sales Representative.