Senate Bill S3895A

                                BILL NUMBER:S3895A

TITLE OF BILL:  An act to amend the real property tax law, in relation
to excluding the value of trees for the purposes of assessment in
certain counties

PURPOSE: This bill excludes the value of trees for the purposes of
real property tax assessments in the Southern Tier.

SUMMARY OF PROVISIONS: Section 305 of the Real Property Tax Law is
amended to exclude the value of trees for the purposes of real
property tax assessments in the Counties of Allegany, Cattaraugus,
Chautauqua, Chemung, Schuyler, Steuben and Yates, retroactively
effective from January 1, 2014.

JUSTIFICATION: This legislation would exclude standing timber on
privately owned forestland in the Counties of Allegany, Cattaraugus,
Chautauqua, Chemung, Schuyler, Steuben and Yates from the definition
of real property for purposes of real property tax assessment. The
escalating costs of municipal services have placed tremendous pressure
on the real property tax system. local governments have improved their
information management systems and are looking for ways to increase
their tax base.

As assessors are becoming more assertive in finding ways to increase
property values, some have changed their assessment on forestlands by
              

including the value of standing timber in the assessment of
forestlands. Those applying this change note that the current
definition of real property includes the value of standing timber in
the assessment of forestlands.

New assessments that attempt to reflect current timber values can
produce a steep tax increase on these properties. The practical
results are likely to be over harvesting, liquidation cuttings or
conversion to development. At the very least, this policy is an
incentive for landowners to practice poor forest management.

Changing the definition of real property to exclude standing timber on
private forestland will simplify the assessment process, reduce
inequities and encourage landowners to manage their forest resources
in a more sustainable manner.

LEGISLATIVE HISTORY:  2011,2012: S.857 Referred to Local Government
2009,2010: S.2261-A Referred to Local Government 2007,2008: S.2868
Referred to Local Government 2006: S.7762 Referred to Local Government

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: immediately, and shall be deemed to have been in full
force and effect on and after January 1, 2014.