T63CH17

Title 63 > T63CH17

Sections (9)

63-1701

TITLE 63 REVENUE AND TAXATION CHAPTER 17 TAXATION OF FOREST LANDS AND FOREST PRODUCTS 63-1701. Definitions. As used in this chapter, unless the context requires otherwise: (1) Average annual net wood production means the average net usable volume of wood one (1) acre of forest land will grow in one (1) year under average current and actual forest conditions and under current and reasonable management practices for each forest value zone. (2) Designation period means any one (1) ten (10) year period in a sequence of ten (10) year periods which begin January 1, 1983. (3) Forest means forest land and the timber thereon. (4) Forest land means privately owned land being held and used primarily for the continuous purpose of growing and harvesting trees of a marketable species. Having met the above criteria, forest land may be further identified by the consideration of any of the following criteria: (a) Forest land is land evidenced by present use and silvicultural treatment. (b) Forest land is land which has a dedicated use that is further evidenced by a forest land management plan that includes eventual harvest of the forest crop. (c) Forest land is land bearing forest growth or land which has not been converted to another use. (d) Forest land is land which has had the trees removed by man through harvest, including clear-cuts or by natural disaster, such as but not limited to fire, and which within five (5) years after harvest or initial assessment will be reforested as specified in the forest practices act ( chapter 13, title 38 , Idaho Code). (5) Forest landowner means the legal entity which holds the property rights under law to the forest land surface. (6) Forest products means any forest crop harvested from forest land. (7) Forest products yield tax means a tax levied on the value of forest products harvested from a parcel as prescribed in sections 63-1703 and 63-1706 , Idaho Code. (8) Forest value means the market value for assessment purposes as determined only on the basis of its ability to produce timber, other forest products, and associated agricultural products through the timber productivity valuation process as prescribed by section 63-1705 , Idaho Code. (9) Stumpage value means the value of timber, whether standing or downed by other than an intentional act of severance, expressed in terms of dollars per unit of measure. (10) Timber means wood growth, of any species and of any size, standing or down on privately owned lands. (11) Bare land value means the value of forest land exclusive of the value of timber and other products growing or being thereon. (12) Stumpage owner means the legal entity which holds the property rights under law to the timber growing on private lands. (13) A substantial change of use means any use other than as forest land as defined in subsection (4) of this section. (14) Deferred taxes as used in section 63-1703 , Idaho Code, means a tax levied to recapture the difference between taxes that were collected on a

63-1702

TITLE 63 REVENUE AND TAXATION CHAPTER 17 TAXATION OF FOREST LANDS AND FOREST PRODUCTS 63-1702. Lands of less than five acres. Land parcels of less than five (5) contiguous acres must be appraised, assessed and taxed as real property, without regard to its ability to produce timber or forest products. Buildings and other improvements located on forest lands of less than five (5) contiguous acres shall be appraised, assessed and taxed as provided by applicable laws, rules and regulations. History: [63-1702, added 1982, ch. 123, sec. 5, p. 352.]

63-1703

TITLE 63 REVENUE AND TAXATION CHAPTER 17 TAXATION OF FOREST LANDS AND FOREST PRODUCTS 63-1703. Certain forest lands to be designated for taxation by owner — Limitations. For the purposes of appraisal, assessment and taxation under the provisions of this chapter, all forest lands in parcels of five (5) or more acres but less than five thousand (5,000), whether contiguous or not, as long as such parcels are held in common ownership, must be designated by the forest landowner to be subject to the provisions of either subsection (a) or (b) of this section. A forest landowner cannot have parcels designated under the provisions of both subsections (a) and (b) of this section at one time. If the forest landowner fails to make a designation, his forest lands shall be subject to appraisal, assessment and taxation under the provisions of section 63-1702 , Idaho Code. Once a designation is made by the forest landowner, such designation must remain in effect until the designation period expires, unless the forest lands are transferred to another owner using a different taxing category; in such case, the taxing category of the transferred forest lands shall be the same as that maintained by the new owner. A forest landowner may change the designation of all forest lands in common ownership at the end of any designation period, subject to the recapture of any deferred taxes due as a result of such change. After January 1 and by December 31 of the tenth year of each designation period, the forest landowner must notify the county assessor of any change in forest land designation. Failure to notify the county assessor will result in the continuation of the landowner’s present designation until the end of the next designation period. Any substantial change in the use of forest lands not conforming with the definition of forest land in section 63-1701 , Idaho Code, during such ten (10) year period under the designations made in subsection (a) or (b) of this section shall be reported by the landowner to the county assessor within thirty (30) days of the change in use. Upon notification of the change in use or a determination by the assessor that the land no longer meets the definition of forest land in section 63-1701 , Idaho Code, the assessor shall appraise, assess and tax those acres as provided by applicable laws and rules. Failure to notify the assessor of the change in use when forest lands have been designated as subject to the provisions of subsection (a) or (b) of this section shall cause forfeiture of such designation and cause that property to be appraised, assessed and taxed as provided in section 63-1702 , Idaho Code. If there are deferred taxes subject to recapture as a result of loss of forest land designation, the assessor shall take no action to supply deferred tax amounts to the county treasurer before the taxpayer has been notified and provided an opportunity to appeal the decision of the assessor to the county board of equalization. Said appeal s

63-1704

TITLE 63 REVENUE AND TAXATION CHAPTER 17 TAXATION OF FOREST LANDS AND FOREST PRODUCTS 63-1704. Large-size forest tracts. Tracts of forest lands which consist of five thousand (5,000) or more acres, whether contiguous or not, so long as such tracts are held in common ownership, must be appraised, assessed and taxed as real property as provided in section 63-1705 , Idaho Code. History: [63-1704, added 1982, ch. 123, sec. 5, p. 353; am. 1996, ch. 431, sec. 2, p. 1466.]

63-1705

TITLE 63 REVENUE AND TAXATION CHAPTER 17 TAXATION OF FOREST LANDS AND FOREST PRODUCTS 63-1705. Taxation of forest lands under the productivity option. (1) In order to encourage private forest landowners to retain and improve their holdings of forest lands and to promote better forest management, forest lands subject to this option shall be appraised, assessed and taxed as real property under the provisions of this section. (2) Forest lands shall be governed by the following productivity classifications and assessments: (a) All forest land shall retain the productivity classification that it held in tax year 2021 for each year thereafter, unless there is a substantial change of use or the landowner successfully appeals the classification pursuant to chapter 5, title 63 , Idaho Code. All forest land shall be assessed in accordance with subsection (4) of this section. (b) Changes to productivity classification of forest land prior to January 1, 2021, shall be made pursuant to the process set forth in section 63-1705A , Idaho Code, and shall be assessed each year thereafter in accordance with the provisions of subsection (4) of this section, except that all reviews by county assessors pursuant to section 63-1705A , Idaho Code, shall be completed no later than January 1, 2021. (c) The productivity classification for land newly classified as forest land after tax year 2021 shall be determined pursuant to section 63-1705A , Idaho Code. In the year immediately following classification and for each year thereafter, newly classified forest land shall retain its productivity classification and shall be valued in accordance with the provisions of subsection (4) of this section. (3)(a) Prior to tax year 2021, the forest land value shall be determined by the timber productivity valuation process, as provided for in the committee on forest land taxation methodologies (CFTM), user’s guide to the timber productivity option’s valuation method – 2005 (Schlosser, January 1, 2005, Moscow, Idaho), referred to in this chapter as the user’s guide, on file with the Idaho state tax commission, available on the website of the Idaho state tax commission, and which shall be made available in the office of each county assessor, which values the net wood production over a reasonable rotation period plus other agricultural-related income, if any, less annualized custodial expenses as defined in section 63-1701 , Idaho Code. The state tax commission shall promulgate rules relating to the timber productivity valuation process, including custodial expenses, as provided for in the user’s guide and the provisions of this chapter. (b) The market value for assessment purposes shall be determined annually by the county assessor using the timber productivity valuation process developed by the CFTM, and as further prescribed in rule. Effective January 1, 2012, the forest land values for taxation purposes will be floored at the 2011 valuation level of all four (4) of the forest value zone

63-1705A

TITLE 63 REVENUE AND TAXATION CHAPTER 17 TAXATION OF FOREST LANDS AND FOREST PRODUCTS 63-1705A. CLASSIFICATION OF FOREST LANDS. (1) The state shall be divided into four (4) forest valuation zones: (a) Zone 1 shall consist of Boundary, Bonner, and Kootenai counties; (b) Zone 2 shall consist of Benewah, Shoshone, Latah, Clearwater, Nez Perce, Lewis, and Idaho counties; (c) Zone 3 shall consist of Adams, Valley, Washington, Payette, Gem, Boise, Canyon, Ada, Elmore, Camas, Blaine, Gooding, Lincoln, Jerome, and Minidoka counties; and (d) Zone 4 shall consist of the remaining nineteen (19) counties. (2) In all forest valuation zones, there shall be three (3) separate productivity classes of forest land: poor, medium, and good. These classes apply to forest land that may or may not be stocked with commercial or young growth timber. (a) Poor productivity class is defined as forest land having a mean annual increment (MAI) of one hundred twenty-five (125) board feet per acre per year, based on a seventy-three (73) year rotation. This productivity class includes western white pine site index 35-45 and ponderosa pine site index 45-80. One hundred twenty-five (125) board feet per acre MAI shall be used in the valuation process. (b) Medium productivity class is defined as forest land having an MAI of two hundred twenty-five (225) board feet per acre per year, based on a sixty-eight (68) year rotation. This productivity class includes western white pine site index 46-60 and ponderosa pine site index 81-110. Two hundred twenty-five (225) board feet per acre MAI shall be used in the valuation process. (c) Good productivity class is defined as forest land having an MAI of three hundred fifty (350) board feet per acre per year, based on a sixty-three (63) year rotation. This productivity class includes western white pine site index 61 and above and ponderosa pine site index 111 and above. Three hundred fifty (350) board feet per acre MAI shall be used in the valuation process. (d) For forest valuation zones 1 and 2, forest land shall be stratified into areas of similar productive potential using the habitat typing methodology described in forest habitat types of northern Idaho: a second approximation, published by the United States government printing office for the United States forest service in 1991. Within these stratified areas, site index trees shall be selected and measured that will identify the site index to be used to place the land in one (1) of the three (3) productivity classes set forth in paragraphs (a), (b), and (c) of this subsection. (e) For forest valuation zones 3 and 4, the criteria for stratification shall be generally the same as that used in zones 1 and 2 based on the habitat typing methodology described in forest habitat types of central Idaho, published by the United States government printing office for the United States forest service in 1981, with the following adjustments made in growth rates for lower moisture levels: (i) For poor pr

63-1706

TITLE 63 REVENUE AND TAXATION CHAPTER 17 TAXATION OF FOREST LANDS AND FOREST PRODUCTS 63-1706. Yield tax on applicable forest products. (1) All forest lands designated by the owner to be subject to the provisions of section 63-1703 (b), Idaho Code, shall be appraised, assessed and taxed according to the provisions of this section. (2) Forest lands held in private ownership and designated by the owner to be subject to the provisions of this section for property taxation shall be valued by the county assessor as real property at rates which reflect only bare forest land value as determined under rules of the state tax commission. (3) All timber severed from lands subject to the provisions of this section and delivered to a point of utilization as logs or semiprocessed forest products shall be subject to a forest products yield tax. This yield tax is in lieu of and replacement for, and not in addition to, property taxes on timber. (4) The yield tax rate shall be three percent (3%) of stumpage value as determined by the state tax commission. In establishing stumpage values, the state tax commission shall: (a) Divide the state into appropriate stumpage value zones, with each zone designated so as to recognize the uniqueness of timber marketing areas. (b) By November 1, set stumpage values by zone for each species and/or product for use in the reporting and payment of yield taxes for timber severed during the following calendar year. Stumpage values shall be based on a five (5) year rolling average value of comparable timber harvested from state timber sales within the stumpage value zone and/or the best available data for the same five (5) year period. (5) Report and payment of yield taxes become the direct liability and responsibility of the landowner at the time of severance. At the time of severance the yield taxes become a perpetual lien on the real and personal property of the landowner. Yield tax amounts shall be calculated by the county assessor on forms prescribed by the state tax commission. Yield tax amounts shall be supplied by the county assessor to the county tax collector on or before November 15 for timber that was severed from January 1 through June 30. The county tax collector shall, by the fourth Monday in November, notify the landowner of any such yield tax amount with payments due and payable on or before December 20. If the taxes due for said period are not paid on or before December 20, the payment becomes delinquent and subject to late charges and interest in the amount provided in sections 63-201 and 63-1001 or 63-904 , Idaho Code, calculated from the following January 1. Yield tax amounts shall be supplied by the county assessor to the county tax collector on or before May 15 for timber severed from July 1 through December 31 in the year following severance. The county tax collector shall, by the fourth Monday in May, notify the landowner of any such yield tax amount with payments due on or before June 20 in the year following

63-1707

TITLE 63 REVENUE AND TAXATION CHAPTER 17 TAXATION OF FOREST LANDS AND FOREST PRODUCTS 63-1707. Examination of records. In order to properly administer the provisions of this chapter, the state tax commission shall have the right at reasonable times to examine the books, accounts and records of the landowner, timber owner or forest products owner at the time of severance or harvest, or party utilizing the logs or other forest products at the time of severance or harvest as necessary to verify the reports required under the provisions of this chapter and shall have the right to examine the source land. History: [63-1707, added 1982, ch. 123, sec. 5, p. 355.]

63-1708

TITLE 63 REVENUE AND TAXATION CHAPTER 17 TAXATION OF FOREST LANDS AND FOREST PRODUCTS 63-1708. Property exempt from taxation. The following property is exempt from the yield tax imposed by section 63-1706 , Idaho Code: Christmas trees, annual forest crops to include nuts, berries, foliage, cones and other forest products harvested for domestic use of the landowner; provided, that the taxes exempted from any one (1) ownership shall not exceed twenty-five dollars ($25.00) in any one (1) year. History: [63-1708, added 1982, ch. 123, sec. 5, p. 356.]