Reports - Mississippi Renewal

THE GOVERNOR’S COMMISSION REPORT | 105supports efforts to ensure the preservationof salvaged wood for future manufacturingby a process termed “wet storage.”The forest products industry andsmall wood dealer businesses have actedquickly to expand the capacity of wetstorage yards to keep salvaged timberviable for utilization for as long as twoyears and increase the value recoveredin salvage operations for landowners.The Commission recommends thatincome derived from salvage cuts in theaffected areas be exempt from federalincome tax of up to $2.5 million foreach landowner who has filed reforestationplans by 2010. The capital gain taxalso should be limited to 5 percent or10 percent of the value of the salvagedtimber. The Commission also recommendsthat an additional incentive allowlandowners to avoid taxes on salvageincome by reinvesting in qualifiedreplacement property, including the costof restoration and reforestation.Casualty Loss Reform. While somelandowners can write off losses on federalincome tax returns, many landownersaffected by Hurricane Katrina havelittle or no basis in timber to providethis option. Long-term landowners andthose who received gifted propertypresumably have little unused basis in it.The Commission recommends a casualtyloss be allowed for these landownerswhen filing federal income taxes, whichwould allow a loss to be taken on somepercentage of market value prior to thedisaster, rather than on basis. The programwould provide a set rate per unitdestroyed and a requirement for professionalappraisal to help prevent fraud.Infrastructure and Public SafetyInfrastructure. In Mississippi, the forestproducts and agricultural industriesmust rely on safe and well-engineeredAn essentialproject is theconstruction ofMississippiHighway 15from the Coast,north to theTennesseestate line. Thisroad willsupport thegrowth of theregion andprovide acriticalhurricaneevacuationroute.road systems to transport products tomarkets and maintain their global competitiveness.New highway constructionto encourage economic developmentand extensive repairs to damagedroads and bridges in South Mississippiare now necessary. An essential projectfor Mississippi is the construction ofMississippi Highway 15 from the Coast,north to the Tennessee state line. Thisroad will support the economic growthof the region and provide a critical hurricaneevacuation route.The Commission recommends thatMDOT implement the following:■ Construct a bypass for Highway 98that will allow traffic to flow southand west of Hattiesburg. Currently,through traffic must travel through acongested urban area, passing retail,commercial, and residential areas.■ Construct a four-lane highway connectingMobile, Ala., with McComb,Miss., thereby creating the “Mobileto McComb Highway.” (Route detailsin the full committee report onwww.governorscommission.com.)■ Widen U.S. Highway 26 to fourlanes from Lucedale west to the PearlRiver Bridge near Bogalusa. Thisroute is a major highway, with heavytruck traffic that has significantly increasedover the past 10 years. Everyday, 450 to 600 loads of forest-relatedproducts travel to various Mississippiand Louisiana mills betweenWiggins and Bogalusa.■ Widen U.S. Highway 589 to fourlanes from Seminary, adjacent toU.S. Highway 49, south to I-59 atthe Purvis exit. This route wouldprovide a safer route and relievetraffic on the north and west sidesof Hattiesburg.Public Safety. Hurricane Katrina hascreated a significant need for the federal