BILL ANALYSIS                                                                                                                                                                                                    �





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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2013-2014 Regular Session                    |
          |                                                                 |
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          BILL NO: AB 2031                   HEARING DATE: June 24, 2014  
          AUTHOR: Dahle                      URGENCY: No  
          VERSION: May 6, 2014               CONSULTANT: Bill Craven  
          DUAL REFERRAL: No                  FISCAL: Yes  
          SUBJECT: Forest resources: timber assessment.    
          
          BACKGROUND AND EXISTING LAW
          In 2012, California established a new assessment on the sales of  
          lumber products and engineered wood products at a rate of 1% of  
          gross receipts to be paid by purchasers and remitted to the  
          Board of Equalization by lumber retailers. The assessment was  
          one of the provisions in AB 1492 that were proposed by the  
          timber industry and incorporated by the Governor in the May  
          Revise that also included changes to the state's wildfire  
          liability laws, and extended the duration of timber harvest  
          plans (THPs). The funds are available upon appropriation for the  
          environmental review of THPs by state agencies, for  
          environmental restoration grants in watersheds adversely  
          affected by timber production, and for grants to various  
          entities for wildfire prevention. 
           
          Retailers with de minimis sales of qualified lumber products are  
          not required to collect the fee. Under existing law, that  
          threshold is $5,000.  

          PROPOSED LAW
          This bill would raise the de minimis threshold to retailers who  
          are not required to collect the assessment to $25,000. Those who  
          purchase lumber from exempt retailers would be given a form to  
          remit the assessment to the Board of Equalization. 

          ARGUMENTS IN SUPPORT
          According to the author, this bill is needed to provide relief  
          to small sellers of lumber products by eliminating the expense  
          of collecting and reporting the assessment. 

          ARGUMENTS IN OPPOSITION
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          None received

          SUPPORT
          State Board of Equalization
          CA Retailers Association
          Califonria Forestry Association
          CalTax
          George Runner, BOE member
          Humboldt Redwood Company
          Medocino Redwood Company

          OPPOSITION
          None Received


































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