Senate Bill S970

                                
 
BILL NUMBER: S970

SPONSOR: YOUNG
 
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

 
PURPOSE:

The purpose of this legislation is to exclude standing timber on
privately owned forestland from the definition of real property for
purposes of real property tax assessment.

 
SUMMARY OF PROVISIONS:

Section 1: Amends section 305 of the real property tax law by adding a
new subdivision 4 which removes standing timber on privately owned
forest-land from the definition of real property for purposes of real
property tax assessment.

 
JUSTIFICATION:
              

This legislation would exclude standing timber on privately owned
forestland 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
looked for ways to increase their tax base. As assessors look harder at
ways to increase value, some are beginning to change their assessment on
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 practi-
cal results are likely to be over harvesting, liquidation cuttings or
conversion to development. At the very least, this policy is an incen-
tive 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 sustain-
able manner.

 
LEGISLATIVE HISTORY:

2017,2018: S.559 Referred to Local Government
2015,2016: S.3066 Referred to Local Government
2013,2014: S.2081 Referred to Local Government
2011,2012: S.788 Referred to Local Government
2009,2010: S.2432  Referred to Local Government
2007,2008: S.2412 Referred to Local Government
2006: S.6818/A.6638 Referred to Local Government

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
Effective immediately.