Mississippi Loggers Association - News

The New Tax Rate for Logging Equipment

John B. Auel

Logger Education Coordinator

Starting July 1st, qualified logging companies will only pay 1.5% sales tax on equipment directly related to logging. This will include tires and repair parts for that equipment as well as labor costs related to servicing. This is an enormous benefit to the logging community in MS. Cecil Johnson, MLA Executive Director, and Tamme Bufkin, MLA Lobbyist, worked very hard to get this bill passed through the legislature.

The only requirement for you to qualify for this new rate is to have at least one employee current with the Mississippi SFI Trained Logger Program. MSU Extension Logger Education will issue each certified logging company a permit for the Mississippi State Tax Commission.

We will mail every logging company that has one person certified a permit before July 1st so you can take complete advantage of this new tax rate. This permit will expire when your SFI Trained Logger Certification expires. As long as you maintain your certification, you will receive a new permit when you receive a new Trained Logger Card. The expiration date for the first permits will be 12/1/2010.

We will be distributing applications for this new tax permit. Please fill them out and return them to the Logger Education office as soon as possible. Applications will also be available through our office and the MLA office. The information needs to be the same information that you use to file your State Taxes.

When you receive your company permit, I recommend that you keep the original. A photocopy of your permit will have to be on file with each of your dealers and parts houses under your company name. I also suggest that you list the employees that are authorized to charge your business account and keep that with the permits in their files. The tax commission will be auditing to ensure that only authorized purchases are given the reduced tax rate.

Authorized purchases include all equipment, skidders, loaders, cutters and so forth that are directly related to logging. It also includes parts and service including oil and tires.

Purchases that are not covered under the new law include trucks and trailers, crew trucks, service trucks, air compressors, welders, chainsaws or any other had tools.

A detailed list of authorized and unauthorized purchases is available from the Logger Education office at MSU and the MLA office in Quitman.