May 05, 2017
The Senate Tuesday gave final passage to legislation redefining timber severance taxes paid by forest product manufacturers. The House of Representatives concurred with the amended version of the bill Thursday, and it now awaits Gov. Kay Ivey’s signature.
HB 313 by Rep. Elaine Beech, D-Chatom, aims to simplify the severance tax and prevent double taxation of materials or residue from a single log. Among other changes, the measure would allow the rate basis of severance tax to be tonnage rather than board feet.
The Senate amended the bill to ensure the new calculation method does not reduce revenue to the Alabama Forestry Commission. It also excludes trees grown specifically as an energy crop from receiving a tax exemption.