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
Housing Starts Increase In May, Far Ahead Of One Year Ago
U.S. housing starts bounced back in May following a dip in April. Housing starts (single-family and multi-family combined) came in at a seasonally adjusted annual rate of 1.572 million, a…
Katerra Digs Too Deep Of A Hole: Anybody Want A New CLT Plant?
Rumors abound over which company will purchase the Katerra cross-laminated timber facility in Spokane, Wash. The new CLT plant is now part of Katerra’s Chapter 11 bankruptcy filing…
Homag Purchases Press Manufacturer
Homag Group is acquiring majority interest in the Danish mechanical engineering company, Kallesoe Machinery A/S, as Homag takes another step toward establishing itself as a leading technology partner for sustainable construction with solid wood…
Interfor Purchases Four Sawmills From GP
Interfor is acquiring four sawmill operations in Bay Springs, Miss.; Fayette, Ala.; DeQuincy, La.; and Philomath, Ore. from Georgia-Pacific for $375 million. Interfor says these sawmill operations are highly complementary to Interfor’s existing platforms in 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.