In many US States, including those in which Drax Biomass operates, there is a system of local taxation called “severance tax”. This is a tax raised on each tonne of timber felled in a State, and is usually paid by the landowner.
Drax Biomass has elected to pay this tax directly, on behalf of the supplier, on all roundwood received at each pellet plant.
In Mississippi alone, over a 12-month period, severance tax in excess of $80,000 was paid. The monies raised are used for local schools, roads and other public services.