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Are logs chipped in the woods subject to the severance tax?

April 26, 2017chipped logs severance Subject tax woods

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Are logs chipped in the woods subject to the severance tax?

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If the chips come from logs graded “4-sawmill and better,” then they are subject to the severance tax. If the chips come from logs below “4-sawmill” grade, then the severance tax does not apply.