Californian governor Jerry Brown signed legislation that charges consumers a 1% tax on lumber products starting in January 2013 and restricts damages landowners
pay for sparking wildfires. Source: Sacramento Bee
The timber industry backed the Assembly Bill 1492 for several reasons for a start consumers will pay for regulatory costs that landowners previously paid and the liability provisions could restrict payouts in future federal lawsuits.
Harvest plans remain effective for longer periods and result in less frequent environmental reviews and the tax applies to purchases of imported lumber that comprises the majority of wood sold, in addition to in-state products.
“California’s laws have saddled our timber industry with costly burdens while giving out-of-state competitors a free ride – but that stops today,” Brown said.
The California Forestry Association argued that small timber companies were at risk of going under because they faced high regulatory costs and could not get sufficient insurance in light of record-high wildfire lawsuit awards.
Some environmentalists supported the bill because it generates $30 million for timber regulatory activities, especially at the Department of Fish and Game, whose budget has faced cuts in recent years.
Lumber retailers Home Depot and Lowe’s were opposed, as were dealers that sell wood to homebuilders.
A meeting of the Board of Forestry and Fire Prevention is expected to decide which wood products will be taxed. A draft regulation says that solid wood products such as lumber, fence boards and wooden roof shakes would be charged. So would “engineered” and “composite” wood products such as particle board.
Exempt would be furniture, paper products, indoor flooring, firewood, cabinets and sporting goods, as well as other finished items.
