ATLANTA — A proposed amendment to the Georgia Constitution would end sales taxes on timber, a major industry battered by mill closings and storms. House Majority Leader Chuck Efstration said a bipartisan group of legislators want to help protect “a cornerstone of the state’s rural economy.” “The timber tax cut is necessary because Georgia timber farmers are facing severe economic hardship following the closure of multiple sawmills in Georgia and significant losses in the aftermath of Hurricane Helene,” said Efstration, R-Mulberry, the sponsor of House Resolution 1000. “Georgia is a national leader in forestry, and I want to help this state’s rural economy and the livelihood of many Georgians.” Georgia’s forestry industry was the largest in the nation in 2021 based on harvest volume and product export values of nearly $4 billion, according to a report by the Georgia Forestry Association. But timber producers have suffered in recent years. International Paper closed two pulp and paper mills in Savannah and Riceboro last year, soon after Georgia-Pacific shuttered a containerboard mill in Cedar Springs. Hurricane Helene damaged about 1.5 million acres of forested land in 2024, with a $1.28 billion impact to the industry, according to the Georgia Forestry Commission. The timber tax elimination would cost the state government up to $18 million a year, Efstration said. The state government would compensate counties, municipalities and school districts for some or all of the loss of local tax revenue. “In heavy-timber counties, that’s their major industry. They certainly don’t want their industry to go out of business,” said Clint Mueller, deputy director for Association County Commissions of Georgia, which advocates on behalf of county governments and hasn’t yet taken a position on HR 1000. “If the state fully pays for this, I don’t know why our members would be opposed to it.” If approved by two-thirds of the state House and Senate, the constitutional amendment would be on voters’ ballots in November. The timber industry could also receive additional support from state lawmakers this year. Gov. Brian Kemp is seeking $14 million in his proposed budget, primarily to support adoption of technology that uses wood products in the auto industry and in pharmaceutical manufacturing.
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