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How RedBuilt™ Products Will Be Affected by California’s Product Assessment Charge on Lumber?

Posted on January 02, 2013 by RedBuilt


I-Joist shadow According to the state of California’s Board of Equalization, “Beginning January 1, 2013, purchases of lumber products and engineered wood products for use in California will be subject to a one percent (1%) Assessment based on the selling price of products.” How does this law affect RedBuilt’s California Customers? “As a consumer of lumber products or engineered wood products, construction contractors will be required to pay the assessment to their California vendors.” “As a consumer of lumber products or engineered wood products, construction contractors will be required to pay the assessment directly to the BOE on purchases made from outside of California for use in California.” What does this mean for RedBuilt™? The State Board of Equalization states that under the new law, “retailers selling lumber products and engineered wood products to California consumers must charge and collect the 1% lumber products assessment from their customers and report and pay the assessment to the Board of Equalization.” “However, wood products that have been manufactured, assembled, processed, or produced from primary wood products are not subject to the 1% assessment. These include “secondary” wood products where there has been additional labor that adds significant value to the product.” Based on the definitions provided by the State Board of Equalization, it appears that RedBuilt™ Open-Web Trusses are not eligible for the 1% assessment, but the BOE has communicated to us that Red-I™ I-Joists and RedLam™ LVL (Laminated Veneer Lumber) are eligible - as are all of the “little pieces of wood” we provide as accessories. For more information, visit the California State Board of Equalization website. What are your thoughts regarding LPA? Please comment…    


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