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Good morning from Montpelier,
It has been another very busy week for the PLC, but with federal action overshadowing activity at the State House for a change.
This week, PLC President Chuck Ames and Treasurer Andy Irish, Board Members Sam Lincoln, Gabe Russo, Jack Bell, and PLC members, Craig Hammer, and Walker McAllister, joined myself and Deputy Director, Ben Grant, for the annual American Loggers Council (ALC) Fly-In.
This important annual event gives us a chance to bring our concerns directly to our legislators in the nation's capital and remind them of the importance of our industry. It was gratifying to bring such a strong contingent from Vermont at a time when many decisions affecting the industry directly and indirectly are being made.
In the course of the week, we were able to meet with Vermont Senator Peter Welch and with the staff of Vermont Senator Bernie Sanders and Vermont Representative Becca Balint to discuss our federal policy priorities. These were positive meetings and important in establishing and improving relationships with legislators and their key staff members.
On our second full day in Washington, the announcement detailing U.S. reciprocal tariffs on other nations was made. As you know, these tariffs and their effects on markets have dominated the news here and around the world ever since. In our meetings, we emphasized that the PLC is taking a wait-and-see approach to the tariffs, hoping for the best, but keeping a close eye on any negative impacts on loggers. Thus far, wood and lumber have not been part of the tariffs, though softwood lumber from Canada is still subject to the 14.5 percent duties already in place, but this could change. We are also monitoring price increases on goods important to the industry, including parts, machines, and fuel. This is an ongoing and rapidly developing situation, but the ALC's lobbyists have shared a full list of the tariffs which we can share with you HERE, as well as a more detailed list and analysis, HERE.
Elsewhere, this week, the ALC has requested Vermont loggers respond to a call to action telling their senators to pass the Fix Our Forests Act immediately. As you know, lack of proper forest management is contributing to catastrophic wildfires, particularly in the western United States. The bipartisan Fix Our Forests Act (H.R. 471) is a solution we need. This critical legislation, sponsored by Rep. Bruce Westerman (R-AR) and Rep. Scott Peters (D-CA), will streamline forest management, reduce fuel loads, and help prevent devastating wildfires before they ignite.
The House of Representatives passed the Fix Our Forests Act in January with bipartisan support, but the Senate has yet to act. We encourage you to urge your Senators to pass this bill without delay and send it to the President's desk. The link to send a message to your Senators is HERE.
Meanwhile, back here in Montpelier, action was limited on the PLC's priority bill this session, S. 46, An Act Relating to the Taxation of Vehicles Used for Forestry Operations, which cleared the Senate last week and arrived this week in the House, where it was referred to the Ways and Means Committee and will receive a first reading next Tuesday.
This bill, as originally submitted, would have exempted new and used heavy-duty trucks and parts used in forestry operations from sales, purchase and use taxes, lowering costs for loggers and forest truckers in the state and putting them on a more equal footing with those in neighboring states where such exemptions already exist. It is vital, as the cost of trucks has more than doubled in the last decade due in part to the cost of mandatory Tier 4 engines designed to reduce emissions, yet that cost increase is preventing many in the logging industry from upgrading to these lower-emissions engines, thus defeating the intent.
As the bill moved through Senate Committees in recent weeks, concerns over its impact on tax revenues that support transportation and education funding prompted a push to amend the bill to reduce the purchase and use tax exemption to 50% and remove the sales tax exemption entirely. While not ideal, this was a deliberate move on the part of supporters of the original bill to improve its chances of passage in the Senate, keeping it alive in hopes of restoring the original language in the latter stages of the legislative process in the House.
Last week, the full Senate took up the bill and, as we anticipated, a recommendation to amend it further in order to sunset it after three years was adopted. Last Thursday, the bill as amended received its third reading and was passed.
At this point, the bill is scheduled to be taken up at 10:30 a.m. next Wednesday, April 9, in the Ways and Means Committee. Our strategy at this point is similar to that we employed in the Senate - namely moving the bill as amended as far through the process as possible before attempting to restore the full sales, purchase and use tax exemptions. We also plan to try and rescind the three-year sunset provision, as inconsistent tax policy will not help us. This strategy depends on our supporters in the Legislature successfully shepherding the bill past obstacles, and it is possible we will need our members to reach out to legislators to support these moves and the bill itself, so please be ready to respond if we need you.
Please reach out to me with any questions, concerns, or suggestions.
Dana