SB244 Summary

• Updates definitions and clarifies forest products subject to severance tax, including logs, pulpwood, chemical wood, bolts, crossties, switch ties, mine ties, poles, pilings, in-woods pulpwood chips, turpentine, and stumpwood.

• Provides taxpayers dual calculation options for severance tax on most forest products, allowing choice between per-unit measurement rates (board feet, log scale, standard cord, pieces, lineal feet) or per-ton rates (2,000 pounds).

• Eliminates double taxation of forest products and prevents manufacturers tax on out-of-state companies; clarifies that timber or manufacturing byproducts used as fuel are not taxed.

• Establishes that wood residue used as renewable energy in forest product manufacturing can be deducted from severance tax and manufacturers tax liability.

• Becomes effective the first day of the third month following passage and applies retroactively to all open tax periods, though no refunds shall be issued for periods prior to the effective date.