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New York Bill Would Exempt Lumber From Sales and Use Tax

Posted on May 4, 2021

A New York lawmaker has proposed legislation that would temporarily exempt lumber from sales and use taxes.

S. 6466, introduced April 29 by Sen. James Gaughran (D), would amend the tax law to exempt timber, logs, lumber, pulpwood, and posts from sales and use taxes following an increase in prices during the COVID-19 pandemic.

“The costs of lumber have spiraled upwards by more than 150 percent in the last year due to tariffs on Canada, reduced output from mills during the COVID-19 pandemic and rising demands as our economy emerges from the pandemic,” according to the bill’s sponsor memorandum.

The rise in lumber prices and demand have contributed to a higher cost for local builders and homeowners who are building, remodeling, or making renovations, the memo said, adding that the bill would help reduce costs and improve the economy post-pandemic.

The sales and use tax exemption would expire and be deemed repealed one year after the effective date.

The bill has been referred to the Budget and Revenue Committee and would take effect immediately if enacted.

Gaughran did not respond to a request for comment by press time.

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