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
Justin Price Becomes 75th FPS President
Evergreen Engineering co-CEO Justin Price will serve as president of the Forest Products Society for the 2022-23 term. Price takes over from Terry Liles, Director of Raw Materials for Huber Engineered Woods…
Nova Scotia’s Elmsdale Lumber Announces Big McDonough Project
Elmsdale Lumber Co. in Nova Scotia has engaged McDonough Manufacturing for what will be a complete sawmill modernization over the summers of 2022 and 2023. This project will see upgrades to both primary and secondary sawing systems designed to increase capacity and more importantly yield…
WWPA Conducts Annual Meeting In Washington
Scenic Skamani Lodge at the Columbia River Gorge hosted the Western Wood Products Assn. annual meeting and also the board meeting of the Softwood Lumber Board during May 24-26…
PotlatchDeltic Announces Project At Waldo Sawmill
PotlatchDeltic Corp. is investing $131 million to expand and modernize its sawmill located in Waldo, Ark. The project will increase the mill’s annual production capacity from 190MMBF of southern yellow pine dimension lumber to 275MMBF. The company states that the investment will reduce the mill’s operating costs significantly…
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.