California Enacts Tax on Lumber and Engineered Wood Products

Thursday, September 13th, 2012

 
 
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California Governor Jerry Brown signed Assembly Bill 1492 into law creating a new 1% tax on lumber and engineered wood products. 2012 Cal. Stat. ch. 289. This legislation adds section 4629 to the Public Resources Code, which in turn creates the Timber Regulation and Forest Restoration Fund. The statute directs the California Board of Forestry and Fire Protection to adopt a regulation implementing the tax no later than October 1, 2012. The tax itself will be effective on January 1, 2013.

While a full analysis of the impacted products must wait for the Board to draft its regulation, the statute gives some guidance as to what will be considered an engineered wood product. The statute specifically lists "plywood," "laminated beams," and "particleboard" as items that qualify as engineered wood product. Also, the statute defines "lumber products" as "product[s] in which wood or wood fiber is a principal component part"; however, items such as furniture, paper, and hardwood flooring are specifically excluded from the definition.


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TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

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