Page 24 - Georgia Forestry - Issue 1 - Winter 2022

What’s next: Stay up to date on the introduction of legislation in 2022. If the legislation is passed with a 2/3 vote by the Georgia General Assembly, voters will be asked to approve the Constitutional Amendment on the November General Election Ballot.
3Fairness in Ad Valorem Tax on Logging Equipment
Logging companies must pay an ad valorem (property) tax on forestry equipment used to prepare or plant, cultivate or harvest timber. However, farm equipment used for similar purposes in the agriculture industry is exempt from the ad valorem tax. GFA is working to secure equal treatment for forestry and farm equipment.
Why it matters: A more equitable tax on forestry equipment would improve the competitiveness of the logging sector, which is a vital part of the forestry supply chain already under stress from other economic factors.
AMERICAN FOREST
MANAGEMENT
A more equitable tax on forestry equipment would improve the competitiveness of the logging sector.
What they are saying: “In Georgia, low log-truck weight limits, rising log-truck insurance premiums, and stiff competition for truck drivers result in higher hauling costs than in other states. Simultaneous increases in wages, fuel, equipment and hauling costs mean profit margins have been erased for many logging operations,” says Dr. Joe Conrad, Assistant Professor of Forest Operations at the University of Georgia’s Warnell School of Forestry & Natural Resources.
By the numbers: Georgia leads the nation in volume of timber harvested. More than 1,000 logging contractors in the state serve as the vital connection between woods and the mill. These companies have to invest in several
pieces of heavy equipment, ranging in cost from $250,000 to $1 million. On the other hand, the source of income is far from stable. The ability to harvest, get paid and make equipment payments depends upon multiple factors (natural disasters, wet weather, tract availability and consumer/mill demand) outside the control of loggers.
What’s next: Stay up to date on the introduction of legislation in 2022. If the legislation is passed with a 2/3 vote by the Georgia General Assembly, voters will be asked to approve a referendum on the November General Election Ballot.
MATT HESTAD IS THE VICE PRESIDENT OF ENGAGEMENT FOR THE GEORGIA FORESTRY ASSOCIATION.
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