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Senate Bill 55 Sawmill Legislation

Senate Bill 55 Sawmill Legislation. Sawmill Legislation. Statutory Change

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Senate Bill 55 Sawmill Legislation

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  1. Senate Bill 55Sawmill Legislation

  2. Sawmill Legislation • Statutory Change • Agricultural and horticultural property shall also include any sawmill or planing mill defined in the U.S. Department of Labor’s Standard Industrial Classification (SIC) Manual under Industry Group 242 with the SIC number 2421, RSMo 137.016. • Implementation January 1, 2012 • Industry Group 242 - Sawmills and Planing Mills • SIC Number 2421 - Sawmills and Planing Mills General

  3. Sawmill Legislation • SIC 2421 Description • Establishments primarily engaged in sawing rough lumber and timber from logs and bolts, or resawing cants and flitches into lumber, including box lumber and softwood cut stock; planing mills combined with sawmills; and separately operated planing mills which are engaged primarily in producing surfaced lumber and standard workings or patterns of lumber.

  4. Sawmill Legislation • Types Of Wood Product Operations That Fall Under This Classification 1. Cutting of rough lumber-hardwood or softwood—from logs. 2. Resawing lumber into shorter dimensions (including pallet stock). 3. Planing of softwood lumber, including dimension lumber, flooring and siding. 4. Kiln drying any lumber. 5. Creating fuel wood from waste. 6. Creating chips, shavings, or mulch. 7. Cutting railroad ties or box lumber. 8. Sawing stave stock.

  5. Sawmill Legislation • Types Of Wood Product Operations That Do Not Fall Under This Classification 1. Cutting or planing hardwood dimension (finished). SIC 2426 2. Creating hardwood flooring and wood frames for household furniture. SIC 2426 3. Producing handle, furniture, or ladder rung stock. SIC 2426 4. Creating molding or trim. SIC 2431 5. Manufacturing wood shingles or, barrel staves, sawed or split. SIC 2419 6. Cutting firewood. SIC 2499 7. Manufacturing pallets. SIC 2448 (Note that the cutting of pallet stock – boards used to make pallets – is an agricultural activity. The assemblage of the pallets listed here is a commercial activity.)

  6. Sawmill Legislation • The SIC Code Is Not Definitive Or All Encompassing • The Assessor will have to determine if a property qualifies or a portion thereof, based on the nature of the wood processing taking place on the parcel.

  7. Sawmill Legislation • To what part of the property does the agricultural classification apply? • Land and Buildings • New classification may result in split use parcels. • Only the areas, land and buildings, which qualify for the agricultural classification should be classified accordingly. • The lines between classifications will blur in many operations and the judgment and discretion of the assessor will make final decision.

  8. Sawmill Legislation • Should the office be classified as agricultural, commercial or a combination thereof when the property has a split use as previously described? • Office classifications could be divided based upon the percentage of the use related to the agricultural use as compared to commercial use. • The judgment of the assessor will determine the portion of agricultural use.

  9. Sawmill Legislation • Should the underlying land of the property qualifying for the agricultural classification be valued based on productive value or market value? • The underlying land should be valued based upon its productivity and placed into one of the eight grades, 137.016.2, RSMo.

  10. Sawmill Legislation • Is personal property used in the qualifying agricultural sawmill or planing activity assessed as agricultural/farm equipment and assessed at 12% of market value? • Yes. Personal property used in agricultural activity is assessed at 12% of market value, section 137.115.3(3), RSMo.

  11. QUESTIONS/CONTACTS • Bruce Davis and Randy Holman, Commissioners • Randy Turley, Chief Counsel • Bob Epperson, Manager, Technical Assistance • Shawn Ordway, Manager, Ratio Study • Sandy Wankum, Administrative Secretary • Maureen Monaghan, Original Assessment 573-751-2414 Email: stc@stc.mo.gov

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