HARRISBURG – Pennsylvania’s timber harvesters would be exempt from Pennsylvania’s Sales and Use Tax under legislation authored by state Rep. Matt Gabler (R-Clearfield/Elk). House Bill 1138 may now be taken up in session following unanimous passage Tuesday by the House Finance Committee.
“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,” Gabler commented. “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.”
Gabler’s bill would amend the Tax Reform Code to exclude the purchase of machinery, equipment and parts used in timbering, just as farmers currently enjoy a sales tax exemption on the purchase of tractors, combines, tools, feed, and fertilizers used in their operations.
“Foresters and farmers both manage a crop, but the Department of Revenue does not allow them to both be classified under agriculture,” added Gabler. “That designation is the catalyst for my legislation, which will also protect local jobs, benefit consumers and allow local timber producers to remain competitive.”
Questions about this or any other legislative issue should be directed to Gabler’s DuBois office at 814-375-4688 or his St. Marys office at 814-781-6301.