New Lumber Tax Passed for Bay Area Hardwood Flooring & Manufacturing Companies.

If you’re busy shopping for new hardwood floors for your Bay Area condo, business, or fifth home, you may have missed important breaking news out of Northern California. On September 11, Governor Jerry Brown signed into law a 1% sales tax on certain lumber products. This legislative move is reverberating powerfully through the timber and wood floor manufacturing industries. It ultimately might significantly impact consumer prices.

photo source: soperwheeler.com

The lumber tax is designed to infuse cash into four state regulatory bodies, which had been funded by the state’s general fund and landowners.

The Golden State’s timber industry introduced the idea of this tax; producers wanted to pass the buck down the supply chain in order to make California’s industry more competitive. Industry advocates have long complained that CA lumber companies must abide by strict regulations. The bill also reduces liability concerns for landowners re: forest fires.

Diverse groups opposed the lumber law, including the Lumber Association of California and Nevada, the National Lumber and Building Materials Dealers Association, and Home Depot. Opponents argued that it’s not fair for the industry to shunt costs down the line to dealers and customers. Furthermore, ambiguity remains about what the law means by “engineered wood products” and “lumber products.” Expect some serious lawyer battles to ensue over the nature and extent of those definitions.

So what does it all mean to Bay Area hardwood flooring consumers shopping for hardwood floors?

Very little, probably!

The Strum und Drang out of Sacramento could certainly have an effect on the industry – especially on dealers and companies – but if you’re making a one-time purchase or budgeting out a simple kitchen or rec room remodeling job, the impact of this new law on your plans will be minimal, if negligible.

Bigger hardwood installation questions loom, however:

• Are you going to do the job yourself?
• How do you know that the project will stay on budget and on spec?
• Do you have the right tools and designs to meet your needs?
• Do you have the proper technology to install, troubleshoot, and test your flooring work?

 

Elegant FloorsThe team here at Elegant Floors offers powerful, systematic and strategic help for homeowners and business owners like you. Connect with us today(650-961-1339) to get your questions answered, or visit us online at www.elegant-floors.com.

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California Passes New Lumber Tax
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