Lumber Manufacturing: Production Exemption

Do you manufacture rough or finished lumber that you’ll sell? If so, you might qualify for the production exemption.

If you qualify for the production exemption, you can buy some equipment and supplies without paying sales or use tax. This guide talks about sales and use tax issues that are unique to lumber manufacturers.

Are you logging instead of producing lumber? See Logging.

Sales

Selling lumber you manufacture or vendors selling to you

Businesses That Qualify

Purchases That Qualify

Change Use

Of an exempt item

Taxable Items

Even with a production exemption

Buyer’s Responsibility

To keep records, pay use tax

Exemption Certificates

Laws and Rules