Legislation that would amend the Tax Reform Code of 1971 to exclude Pennsylvania timber companies from paying sales and use tax on items used directly in their operations will go to the state House of Representatives on Wednesday for second consideration.
Earlier this year, state Rep. Matt Gabler, R-DuBois, reintroduced House Bill 1138, formerly House Bill 2546 of 2011, to extend a sales tax exclusion for timber harvesters which already exists for agriculture, manufacturing and even sawmills.
Gabler said Sunday the intent behind the legislation is to prevent compounding taxation on timber harvesters. “To tax the items that go into their production, it ends up being a compounding tax,” he said. “It’s all part of generating a product, and the proper place to talk about sales tax is on the retail side of things — not in production.”
The legislation has already been reported by the House Finance Committee and will be examined by the House Appropriations Committee as to the fiscal impact of omitting that stream of tax revenue. On Wednesday, the state House will be able to add any amendments, but Gabler does not foresee any drastic changes.
“So far, there are not any amendments that would change the bill substantially,” he said. “I filed an amendment myself for the bill with consultation with my colleagues after it went through the finance committee just clarifying the language so the Department of Revenue has no trouble interpreting it.” Gabler said he anticipates that his amendment clarifying language should pass on Wednesday.
From The Bradford Era: https://www.bradfordera.com/news/article_dffffe24-4a78-11e3-8870-001a4bcf887a.html