Section 9-13-82
Rates; additional taxes; exemption; legislative intent.
(a) The measure of the forest products severance tax is at the following rates:
(1) On pine logs severed in Alabama and delivered to a manufacturer, processor, or concentration yard in Alabama, the rate shall be $0.10 per ton (2,000 pounds). On pine logs severed in Alabama for transport out of the state, the rate shall be $0.10 per ton (2,000 pounds).
(2) On all other species of logs severed in Alabama and delivered to a manufacturer, processor, or concentration yard in Alabama, the rate shall be $0.065 per ton (2,000 pounds). On all other species of logs severed in Alabama for transport out of the state, the rate shall be $0.065 per ton (2,000 pounds).
(3) On pulpwood, $0.10 per ton (2,000 pounds) on pulpwood severed in Alabama and delivered to the manufacturer, concentration yard, or processor. On pulpwood transported out of the state, $0.10 per ton (2,000 pounds) for pulpwood severed in Alabama.
(4) On pilings and poles, $0.205 per ton (2,000 pounds) on pilings and poles severed in Alabama and delivered to a manufacturer or concentration yard. On pilings and poles severed in Alabama and transported out of the state, $0.205 per ton (2,000 pounds).
(5) On stumpwood (tarwood), $0.125 per ton (2,000 pounds) on stumpwood severed in Alabama and delivered to a manufacturer. On stumpwood severed in Alabama and transported out of the state, $0.125 per ton (2,000 pounds).
(6) On inwoods pulpwood chips, $0.10 per ton (2,000 pounds) on chips produced in the woods from pulpwood severed in Alabama and delivered to the manufacturer or concentration yard. On inwoods pulpwood chips produced from pulpwood severed in Alabama and transported out of the state, $0.10 per ton (2,000 pounds).
(b) There is also levied a privilege tax against the manufacturer using the forest products in an amount equal to 50 percent of the tax on the severer as set out above. The privilege tax shall be collected in the same manner as the forest products severance tax is collected and shall be known as the forest products manufacturers tax. This tax is levied on manufacturers located only within this state. It is the legislative intent that this privilege tax is not to be levied in any manner upon the person owning the land from which the forest products are severed nor upon the producer but it is levied upon the manufacturer that uses the forest products in the manufacturing process.
(c) Pulpwood, logs, or portions thereof on which the forest products severance tax has been paid shall not be subject to an additional forest products severance tax when converted into pulpwood chips. The additional forest products manufacturers tax levied by subsection (b) shall be paid by the manufacturer utilizing the pulpwood chips in a manufacturing process.
A manufacturer utilizing logs in a manufacturing process that also produces residual pulpwood chips from those logs shall not be liable for the additional forest products manufacturers tax levied by subsection (b) on that portion of the log that is converted into residual pulpwood chips. The additional forest products manufacturers tax levied by subsection (b) attributable to those residual pulpwood chips shall be paid by the manufacturer utilizing the residual pulpwood chips in a manufacturing process.
(d) A manufacturer may establish entitlement to the exemption from forest products severance tax provided by subsection (c) by obtaining a certificate from the seller providing that the seller is a manufacturer, concentration yard, or processor that is registered with the department to remit forest products severance taxes, and any manufacturer who obtains a certificate shall not be held liable for any forest products severance tax on the pulpwood chips or residual pulpwood chips purchased from the seller.
(e) It is the intent of the Legislature to encourage the use of forest based renewable energy. Fuel chips produced in the woods at the site of severance are not subject to the taxes set forth in this article. For purposes of this section, fuel chips include woodchips that are produced from tree tops and limbs, logging slash, down timber material, or standing live or dead trees which do not meet commercial standards because of size, species, merchantable volume, or economic selection criteria, and are used as a form of energy in conjunction with a manufacturing process. Fuel chips do not include similar materials utilized as feedstock in a manufacturing process. Trees that are grown specifically as an energy crop do not qualify for the exemption set forth in this subsection.
(Acts 1945, No. 169, p. 285, §3; Acts 1955, No. 385, p. 921, §1; Acts 1967, No. 763, p. 1619, §1; Acts 1973, No. 500, p. 738, §1; Acts 1985, No. 85-700, p. 1141, §1; Acts 1988, 1st Ex. Sess., No. 88-842, p. 315, §1; Acts 1993, 1st Ex. Sess., No. 93-888, p. 158, §2; Acts 1995, No. 95-255, p. 427, §1; Act 2017-301, §1.)