BILL NUMBER: S6466

SPONSOR: GAUGHRAN
 
TITLE OF BILL:

An act to amend the tax law, in relation to exempting timber, logs,
lumber, pulpwood and posts from sales and use taxes; and providing for
the repeal of such provisions upon expiration thereof

 
PURPOSE:

This bill exempts timber, logs, lumber, pulpwood and posts from sales
and use taxes for one year after the effective date.

 
SUMMARY OF PROVISIONS:

Section one amends subdivision (a) of section 1115 of the tax law by
adding a new paragraph 15-a to exempt timber, logs, lumber, pulpwood and
posts from sales and use taxes.

Section two is the effective date.
              

 
JUSTIFICATION:

The costs of lumber have spiraled upwards by more than 150 percent in
the last year due to tariffs on Canada, reduced output from mills during
the COVID-19 pandemic and rising demands as our economy emerges from the
pandemic. This is contributing to an increased cost for homeowners look-
ing to remodel, build, or make home renovations.  It is also increasing
costs on local builders who stick to quotes priced out prior to price
surges and absorb the cost. In order to alleviate costs and jump start
the local economy post-pandemic, this legislation will exempt sales and
use taxes for timber, logs, lumber, pulpwood and posts for one year
after the effective date.

 
LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This bill shall take effect immediately and shall expire and be deemed
repealed one year after the effective date of this act.