The Lincoln County Board of Supervisors is deferring to a stateauthority to help make a decision on the possibility of grantingtax exemptions to Brookhaven’s Industry of the Year.

Board attorney Bob Allen said Mississippi statute was not clearon whether two tax breaks totaling $76,000 in exemptions couldlegally be awarded to Columbus Lumber Co.

Although company co-owners Jeff Grierson and Doug Boykin – whoboth appeared before the supervisors Monday – made a case to claimboth exemptions, Allen was unable to find an attorney general’sopinion on the legality of the matter. Supervisors instructed himto request an opinion in writing before a decision on theexemptions was made.

“In Mississippi, you have to have statutory authority to dosomething,” Allen said. “It’s not a matter of you can do anythingthe law doesn’t say you can’t do. I have to write a very narrative,detailed request so the attorney general is operating with all thefacts.”

Grierson and Boykin are requesting a $63,000 tax break under thenew enterprise exemption – which would waive all of the company’sproperty taxes except school taxes. Even though Columbus Lumber hasexisted in Brookhaven since 1943, Grierson and Boykin believe thecompany meets the new enterprise qualification as it has only beenunder their ownership since mid-2006.

Allen disagreed.

“I don’t read the statute to say that, and I found no attorneygeneral’s opinion that would support that theory,” Allen said.

The other tax break requested by the company owners was a$13,000 free port warehouse exemption, which waives taxes on goodsin transit through the state for sale elsewhere. Columbus Lumberhas a stronger chance of obtaining this exemption, as a 1989 AG’sopinion exists saying that goods manufactured in the state for saleout of the state can be considered under the free port warehousestatute, Allen said.

Columbus Lumber exports 83 percent of its product outside ofMississippi, Boykin said, a factor that strengthens its case forthe exemption.

The same two tax breaks, if granted by the city board ofaldermen, could add $58,000 to the total – $10,000 for the freeport warehouse exemption and $48,000 for the new enterpriseexemption. Grierson and Boykin met with the aldermen in a worksession previously, but they have not officially presented therequest to the board.

The total of both exemptions within the city and county is$134,000.

The Lincoln County Industrial Development Foundation made afavorable recommendation toward the company’s pursuit of the freeport warehouse exemption , although it tabled any action on the newenterprise exemption in order to observe how the county ruled onits legality.

“The IDF members and myself were surprised that Columbus Lumberdid not already have a free port warehouse exemption,” saidBrookhaven-Lincoln County Chamber of Commerce Executive VicePresident Cliff Brumfield.

Still, the board was unwilling to test the legal waters oneither exemption request without an opinion from the AG. Allenpointed out that if the board gets an AG opinion favorable toColumbus Lumber’s request, the board will be shielded from anyliability if the exemption is later overruled by the courts.

Even if such a favorable opinion is granted by the AG’s office,it will not mean that Columbus Lumber will receive the exemptions.The final decision rests with the board, who, like the lumberindustry and the rest of the nation, are dealing with hard economictimes.

“We’ve learned that there’s really not any such thing as a taxexemption – it’s a tax shift,” said District Four Supervisor DougMoak. “When we grant tax exemptions, it shifts it over to someoneelse who has to pick up the tab. My biggest concern is that if wewere to exempt them, I really can’t see us being able to trimcorners in our county budget. It would have to be passed on to thetaxpayers.”

Moak said he did not think Columbus Lumber would be awarded bothtax breaks in the end, only the free port warehouse exemption.

“That ad valorem request – that’s a big heap,” he said. “Iappreciate them being there – Columbus Lumber has been with us fora long time. But we have to look at this on the county’s side, too.We have to suck it up like everyone else.”

Sucking it up is exactly what Columbus Lumber has been doing fortwo years. Along with everyone involved in the nation’s lumberindustry – which is at almost an all-time low due to the woefulcondition of the housing market- the company has been forced toscale back production, implement curtailments and has been steadilylosing money.

That is why the tax exemptions are being sought.

“We’re here with our hats in our hands,” Boykin said to thesupervisors. “We’re committed to this community, and we’re tryingto make it through some tough times.”

Boykin pointed out Columbus Lumber’s contribution to the localeconomy and community. The company has 115 employees, 65 percent ofwhich live in Lincoln County, he said. Columbus Lumber distributed$4.6 million in payroll in 2007. Some of the employees have beenwith the company for almost half a century.

Grierson said the tax exemptions he and Boykin are seeking willnot solve all of the company’s problems, but will definitely helpit through a time of historic difficulties.

“It will not be critical if we do not get these exemptions, butwe will have to find other ways of getting this kind of money,” hesaid. “This is part of a bunch of pieces. In and of itself, it’snot the saving grace.

“But when you put it together with other things we’re doing -manufacturing new products and other ways to cut out costs – itbecomes a part of a bigger picture that helps us significantlyduring our downturn,” Grierson said. “It could be a way to keep usfrom having to do additional curtailments and cuts. We’re askingfor a little help.”