(a) The Legislature finds and declares that the intent of Act 2017-301 is to simplify and clarify existing language used to calculate and collect forest product severance taxes and forest product manufacturing taxes and to ensure that these taxes are levied and paid only once. In furtherance of that intent, the Legislature finds that Act 2017-301 clarifies all of the following:
(1) Before July 1, 2017, if a manufacturer paid forest products severance tax utilizing a formula to convert from the weight of delivered logs to an estimate of volume based on either board measure lumber tally or log scale (Doyle Rule) for the purposes of determining the amount of forest products severance tax to be paid, then no additional forest products severance tax shall be due on the products produced from that log including the parts of the logs that are converted to residual pulpwood chips.
(2) Before July 1, 2017, if any manufacturer collected and paid forest products severance tax based on the weight of delivered logs, no additional forest products severance tax shall be due on the products produced from that log including the parts of the logs that are converted to residual pulpwood chips.
(3) Before July 1, 2017, if the forest products severance tax was paid on either pulpwood chips or the logs used to produce pulpwood chips, no additional forest products severance tax shall be due by the manufacturer purchasing the pulpwood chips for use in a manufacturing process.
(b) The clarifications provided in subsection (a) shall apply to all open tax periods and all periods for which a preliminary or final assessment of tax could be or was entered pursuant to Section 40-2A-7, or any successor general or local law, before July 1, 2017.
(c) No refunds shall be due or issued pursuant to the clarifications provided in subsection (a) with respect to those tax periods occurring before July 1, 2017.
Last modified: May 3, 2021