HARRISBURG – Reps. Martin Causer (R-Turtlepoint) and Matt Gabler (R-Clearfield/Elk) are reminding area loggers of a sales tax exemption now available to them for business-related equipment, supplies and services.
The law providing the exemption was adopted last year as part of the state budget process, and it took effect on July 1.
“While timbering has always been a key part of the state’s agriculture industry, it did not receive the same tax benefit as was available to other agricultural operations,” Causer said. “This change brings fairness to the law.”
Gabler agreed. “We fought to fix this inconsistency in our state’s tax law because we know that it will help local timber producers to be competitive and it will ultimately protect local jobs,” he said.
According to the Department of Revenue, those eligible for the exemption would include purchasers engaged in timbering as a business enterprise. Timbering involves producing or harvesting trees for commercial production; it does not include harvesting trees for the purpose of clearing land for access roads.
The exemption would apply to the purchase of machinery and equipment and their associated parts and foundations, as well as supplies or services, which are necessary to perform operations prior to the transport of the harvested products, such as in-field processing of trees into logs or chips, loading forest products onto highway vehicles for transport to storage or processing facilities, or postharvest site reclamation.
The timbering exclusion does not apply to the following:
- Vehicles required to be registered under the Vehicle Code, regardless of how they are used.
- Materials, supplies or equipment used to construct, reconstruct, alter, remodel, service, repair or maintain real estate or real estate structures.
- Tools, equipment and supplies used in performing maintenance work.
- Property or services used in managerial, sales or other nonoperational activities.
- Property or services used after the harvested product is loaded onto highway vehicles for transport from the timbering site.
- Property or services used for the purpose of clearing land for access roads.
Purchasers who wish to claim the exemption should use the Pennsylvania Exemption Certificate (REV-1220), available at www.revenue.pa.gov.
