Taxing Timber
Did you know trees can be taxed?Most people aren't aware standing timber on properties - which in some instances totals thousands of dollars - can be considered part of the value.
The reason is simple: Inclusion of timber value is rarely done. But that may soon change.
The topic has been gaining volume as local town officials, legislators and conservationists debate its implications. Yet the provisions for timber assessment themselves, according to Joe Hesch, public information officer for the state Office of Real Property Services, are hardly new.
Hesch said standing timber has been in the real property tax law for more than 100 years. This year, however, it's become a top priority of forestry officials who are concerned about the financial impact of including trees in property assessment formulas.
“There's really no equitable way for assessors to put a number on somebody's land,” said forester Pete Collin. “The value of a wood will change every year. You can't hire a forester to cruise every tree every year. It's a very controversial law.”
Collin said taxing standing timber might cause people to chop down their trees simply to save money.
Mark Lawton, a western New York forester, agreed. He said the Southern Tier is made up of anywhere from 60- to 80-percent timber ground, and it would cause logging companies to chop too many trees before allowing enough growth. Currently he said the companies only cut a certain number of trees every year because they need at least 15 years to regenerate.
“It wouldn't surprise me that people would try to cut,” Collin added. “Essentially trees become a pest and a tax liability.”
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Loggers aren't the only people taking notice. State Sen. Catharine Young, R-Olean, has drafted a bill to amend that portion of the property law to exclude forestland from home assessments. According to the document, Young believes municipal service costs have risen, which will cause local governments to look for ways to increase their tax base.“We've seen the devastating impact, and we need to end it,” she said. “In New York state it seems like we tax everything, and it's amazing we even tax trees.”





Comments
On one hand, NY taxes can be ridiculous and we've seen taxes/fees be generated in many places. On the other hand, standing timber is a valuable commodity and ignoring its presence seems like in inequitable tax break. I think the more logical solution would be to revisit 480/480a provisions for tax breaks on timber rather than exempting the forest for the trees.
Posted by: Todd | May 24, 2006 04:02 PM