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
Colorado Homebuilders Called To Use Beetle-Killed Timber
Senator Mark Udall recently called on Colorado homebuilders to use beetle-killed trees to build homes, thus clearing local forests of hazardous trees and creating jobs in the process. At an event showcasing a home built…
Washington Based Stimson Lumber Mill Facing Closure
The Washington State Employment Security Department said last week that the Stimson Lumber Mill in Arden, Wash. will layoff 67 of its workers in November and eventually shut down the mill. The 67 impending layoffs…
Bandit Industries Receives EPA Award
Bandit Industries, Remus, Mich., recently received an Environmental Protection Agency award in recognition of efforts to reduce hazardous chemicals through the National Partnership for Environmental Priorities (NPEP) program. The award was presented to Bandit Industries…
Coastal Lumber Ceases Operations
Charlottesville, Va. based Coastal Lumber Co., long a major hardwood lumber producer, closed operations in mid-August. The company laid off 200 employees and shut down five sawmills in West Virginia, nearly 70 employees and the…
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.