Page 8 - Georgia Forestry - Issue 1 - Winter 2023

LEGISLATION
COMPETITIVE DISADVANTAGE:
Georgia Has the Lowest Allowable Truck Weights and Highest Harvest
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• WHAT THEY ARE SAYING: Harry Sanders of Sanders Logging in Cochran, GA, said, “The ability to get products to market efficiently is crucial for the forestry industry, which is dependent on moving high volumes of timber. Increasing allowable haul weights would be critical for our business, as it will help us address driver shortages, high fuel and input costs and ever-increasing insurance costs. The forest industry needs this legislation to maintain productivity and efficiency to keep our businesses alive.”
• BY THE NUMBERS: According to data from the University of Georgia, the timber supply sector is dealing with an aging workforce and increasing turnover demand. Inflation has also had a massive impact, increasing the costs per ton by $2.50 over the last year, according to Forisk Consulting. This equates to roughly an additional $7,500/week for timber suppliers to maintain production levels.
Last year, the GFA helped champion House Bill 496, sponsored by Rep. James Burchett (R-Waycross), which would have increased Georgia’s allowable Gross Vehicle Weight for trucks hauling raw
forest products. While the bill did not get through the legislature, it helped set the groundwork to introduce new legislation for the 2023 Session.
Reforming Timber
Severance Taxation
When farmers harvest cotton, peanuts, blueberries, peaches or any other agricultural commodity, they are not subject to an additional tax at the time of harvest. However, when landowners harvest standing timber, they are subject to a harvest tax on 100% of the timber’s fair market value. The GFA is proposing a constitutional amendment that would reduce the ad valorem tax rate on harvested timber to be assessed on 40% of the fair market value, which is on par with other real property (e.g. homes, vehicles, etc.).
• WHY IT MATTERS: Even when preferential conservation programs are considered, Georgia has higher taxes than any of its neighboring states, and even though landowners don’t always get annual returns, they still pay annual taxes. Urbanization is the greatest threat
to forestry in the state, and a more equi- table severance tax that treats timber like other real property would help ensure landowners’ ability to maintain working forests. Reducing the severance tax on timber would create equity in taxation for timberland owners and help improve Georgia’s competitiveness with other tim- ber-producing states.
• WHAT THEY ARE SAYING: Dr. Matilda Riles, a forest landowner from Liberty County, GA, said, “As a small forest landowner, it is already very difficult and costly to manage, harvest and reforest our land. The profits from a timber sale on our property go directly to reforesting the land and paying the taxes from the harvest. I do want to keep my land in our family; however, I must ensure that it is a blessing and not a burden.
Beyond our own land, we often talk with heirs’ property landowners in our community. Their land is already tied up with expensive legal issues and back taxes on the property. When they are educated on all the taxes they have to pay — both annual property tax and the tax at the time of harvest — it is hard to keep them
6 | GEORGIA FORESTRY