The partial sales tax exemption for machinery and equipment used in commercial timber operations was replaced by a new exemption that will be phased in over several years. Until the new exemption on qualifying items is fully effective in 2008, tax- payers will be eligible for a partial refund or credit of state and local sales taxes.

The refund or credit applies to purchases, leases and rentals, but not labor charges, for taxable repair, remodeling, or maintenance services. Items qualifying for the refund or credit are as follows: Seedlings of trees commonly grown for commercial timber; defoliants, desiccants, fertilizers, fungicides, herbicides, insecticides and machinery or equipment exclusively used in timber production; tangible personal property installed as a component of an irrigation system exclusively used in timber production; machinery and equipment, including pollution control equipment used by an original timber producer to process, pack or market his products.

A timber producer must pay the full amount of the sales tax on the total price. A producer with a sales tax permit may then take a credit on his next sales tax return by reducing reported taxable sales or purchases by the appropriate amount. The tax- payer must use the credit within one year of the date of original purchase.

Timber producers who cannot take a sales credit on their tax return, may instead request a refund from the Comptrollers Office.

The amount of refund or credit is based on date of purchase: 33 percent for purchases from Oct. 1, 2001 through 2003; 50 percent for purchases in 2004 through 2005; and 75 percent for purchases in 2006 through 2007. Beginning in 2008, a timber producer may claim a full exemption when purchasing qualifying items.

If you have questions about your refund request, you may call 1-800-531-5441, extension 3-4545. Refund requests should be mailed to: Comptroller of Public Accounts, Sales Tax Refunds Verification Section, P. O. Box 13528, Austin, TX 78711-3528.

Source: Tax Policy News, Oct. 2001

Taxpayers fund environmental groups
Environmental funding, where does it come from? The taxpayer pays a big chunk, but the amount of money that flows from this source to the enviro groups "has never been calculated, partly because it springs from so many sources."

More than two dozen federal entities give grants to environmentalists. There is no government agency that charts the total spending, identifies trends or assesses what taxpayers are getting for their money.

In 2000, about $137 million went to 20 environmental groups. Four of them—The Nature Conservancy, Ducks Unlimited, National Fish, and the World Wildlife Fund—have received more than two-thirds of the money since 1998.

Source: Landowner, Vol. 24, No. 3, Feb. 11, 2002