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
U.S. Housing Starts Surge 27 Percent Above 2012 Rate
Housing starts in February rose 0.8% from January, to a seasonally adjusted annual rate of...
Wyoming Governor Marks Sawmill’s Startup and Celebrates New Jobs
Wyoming Governor Matt Mead attended a ribbon cutting today at the Saratoga Forest Management Mill....
Lumber Futures Climb To 8-Year High
Lumber futures have climbed to their highest level since 2005 and they have gained around 9% this...
Bat-Killing Fungal Disease Has U.S. Lumber Firms Fighting States
Greg Turner hoisted himself up with a rope from an unlighted 20-foot pit in an abandoned mine in...
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.