Forest Management and Present Use Value Tax Plans 

How would you like to lower your property taxes?

“Forestry PUV is the value of a tract of land used as forestland, based solely on its ability to produce income from timber growth, assuming an average level of management. A county tax assessor calculates the associated property tax by applying the current tax rate to the use-value of the land that is producing timber, rather than to the market value, which is based on the highest and best use of the property. In many counties the tax savings from enrolling in the PUV program are substantial and allow landowners to maintain their forestland despite development pressure.”

 “Qualified North Carolina owners of soundly managed commercial forestland have been eligible for property tax reductions since 1974 through the state’s forestry present-use property tax program. To be eligible for Forestry Present Use Valuation, qualified forestland must be actively engaged in the commercial growing of trees under sound management (NC General Statues 105 277.2- 277.7). Commercial growing of trees will entail a harvest as a thinning, partial, or complete harvest of trees (as prescribed in the forest management plan filed with the county tax office).”  (NC State University - Woodland Owner’s Note 40)

Why should you actively manage your forest?

The old saying - “you get what you pay for” applies to forest management. Letting a stand regenerate itself naturally (no cost), often results in a forest with low quality hardwood pulpwood and scattered pine trees. As a result, the land is not operating at full capacity and the owner does not get the most out of their land. Plus, the timber value will be greatly diminished.  

Forest management, on the other hand, is the science and art of managing the land and trees in your forest in order to achieve your goals or objectives. Whether your goal is to generate the highest monetary value possible or to manage and improve your land as a gift to the future generations of your family, sound forest management does pay a good return on investment.

Timberland Tax Tips for 2014

WoodsRun Consulting Forestry, PA
Greg Conner, RF, CF, ACF
(910) 876-2459
Bill Holmes, RF, ACF
​(910) 622-7790

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