LOGGING EQUIPMENT SALES AND USE TAX EXCLUSION
Act 84 of 2016 amended Article II of the Tax Reform Code of 1971 to exclude purchases of certain types of logging equipment from the Pennsylvania sales and use tax.
To ensure the exemption covered a wide range of necessary equipment, the Act expanded the definitions of “timbering” and “logging equipment.” This broader definition now includes machinery such as feller bunchers, skidders, and loaders, as well as parts and services for these machines. Additionally, the Act clarified that only equipment directly involved in the cutting, removal, and initial processing of timber qualifies for the tax exemption, ensuring that the benefits are restricted to essential logging activities.
Overall, these changes aimed to support the logging industry in Pennsylvania by reducing operational costs associated with purchasing essential equipment, thus promoting growth and sustainability within the sector.
ADDITIONAL RESOURCES:
