Prohibits assessors from increasing the assessments of forestland based on the stumpage value of the trees thereon

1 Co-sponsor

• David J. Valesky

BILL NUMBER:S787C

Title of bill

An act to prohibit local assessors from increasing the assessed value of real property based on the stumpage value of the trees thereon and to establish the forestland taxation task force

Purpose

This bill prohibits local assessors from increasing the assessed value of real property based on the stumpage value of the trees thereon and establishes the forestland taxation task force.

Summary of provisions

This legislation prohibits local assessors from increasing the assessed value of real property based on the stumpage value of the trees thereon and establishes the forestland taxation task force. The 7 member task force shall examine, evaluate and make recommendations on assessment and taxation of private forest lands which are consistent with promoting sustainable forestry practices, encouraging private investment in work- ing forests and maintaining open spaces. The task force shall issue a report with its recommendations to the Governor and the Legislature before April 30, 2014.

Justification

Private forest owners who steward their land for forest uses provide great value and social contributions to the state's goals to promote open space. Escalating land and timber values, in addition to increasing municipal budgets, have left private forest landowners facing signif- icant assessment and property tax increases. Revaluation of forested parcels often results in assessment increases of 30-50% compounded by the tax rate increases associated with the annual growth of municipal budgets. These anticipated property tax increases leave the owners of forestland with an economically unsustainable resource that may have to be liquidated, resulting in loss of forested open spaces.

This legislation prohibits local assessors from increasing the assessed value of real property based on the stumpage value of the trees. It also establishes the forestland taxation task force which will look to ensure that present and future forestlands may be protected and enhanced as a viable segment of the state's economy and as an environmental resource. Specifically, the forestland taxation task force will address how to obtain equitable and consistent assessment of forest lands statewide.

Legislative history

2011: S.787A Reported and Committed to Finance; A.5828 Referred to Real Property Taxation Committee 2009-10: S.2418A Referred to Local Government A.10315 Referred to Real Property Taxation Committee 2007-08: S.2775A Referred to Local Government 2006: S.7776A Referred to Local Government

Fiscal implications

None to the State.

Effective date

Effective immediately.