Posted November 12, 2013
A bill, which would amend the Pennsylvania tax code to
exempt timber companies from paying sales and use tax on items used directly in
their operations, will be considered by the state House of Representatives on
Wednesday, according to an article by the Bradford Era available here.
House
Bill 1138 was introduced by Pennsylvania state Representative Matt Gabler
(R-DuBois), to extend a sales tax exclusion for timber harvesters. The tax exclusion already exists for
agriculture, manufacturing, and sawmills.
Gabler explained that the intent of the legislation is
to prevent compounding taxation on timber harvesters. The legislation has been reported by the
House Finance Committee and will be examined by the House Appropriations
Committee for the fiscal impact of omitting that stream of tax revenue.
Examples of the current sales tax exclusion that
applies to agricultural operations include tractors, combines, tools, feed, and
fertilizers that go directly into the farming operation, according to Gabler.
“The irony in current law has the very same sawmill
industry that works hand-in-hand with the timber industry exempt from sales and
use tax…The timber industry belongs in the same category with farming, dairy,
and manufacturing in being excluded from what essentially is double-taxation,
since sales tax is charged at retail on the final product.” A press release from Rep. Gabler’s office is
available here.
For more information on timber law, please visit the
National Agricultural Law Center’s website here.
