US Laws, Codes, Statutes & Cases

                                  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)  The forest land value shall be determined by the timber productivity
valuation process, as provided for in the committee on forest land taxation
methodologies, 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. Pursuant to the provisions of this
section, the inventory of forest products shall not be included as part of the
valuation of the forest land as provided in section 63-602W, 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.
    (3)  Effective January 1, 2005, 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. Notwithstanding any other provision of law, the state tax
commission is authorized to cite the user's guide in its rules and shall:
    (a)  Divide the state into appropriate forest valuation zones, with each
    zone designated so as to recognize the uniqueness of marketing areas,
    timber types, growth rates, access, operability, and other pertinent
    factors of that zone;
    (b)  Establish a uniform system of forest land classification which
    considers the productive capacity of the soil to grow forest products and
    furnish other associated agricultural uses;
    (c)  Provide for the annual input to the timber productivity valuation
    process including the stumpage value, rotation length, mean annual
    increment, guiding discount rate, annualized custodial expenses,
    appropriate property tax rates, and real price appreciation rate of
    stumpage according to the user's guide. The guiding discount rate and the
    real price appreciation rate for timber products shall remain constant at
    four percent (4%) and one and one-quarter percent (1.25%) respectively,
    until January 1, 2012;
    (d)  Conduct a forest management cost study every five (5) years to
    determine the annualized custodial expenses to be used in the timber
    productivity valuation process as provided in the user's guide. The first
    study shall be conducted in 2005 and evaluated by the CFTM, with the
    results incorporated into the user's guide timber productivity valuation
    process on January 1, 2007. The forest management cost study shall be
    funded by the state tax commission, subject to appropriation by the
    legislature; and
    (e)  Provide for any additional data as needed.
    (4)  The state tax commission shall by March 1 of each year, furnish all
input for the timber productivity valuation process to the county assessor.
    (5)  Stumpage values shall be based upon the preceding five (5) year
rolling average value of timber harvested within the forest value zone from
state timber sales and/or the best available data for the same five (5) year
period. Average agricultural-related income and the average expense component
for each forest value zone shall be determined for the same time period as the
period used to determine average stumpage values.
    (6)  Forest lands upon which, at any time after January 1, 1982, the trees
are destroyed by fire, disease, insect infestation or other natural disaster
such that the lands affected will not meet minimum stocking requirements under
rules adopted pursuant to chapter 13, title 38, Idaho Code, shall be eligible
for a reduction in value for the first ten (10) property tax years following
the loss. The amount of reduction shall be determined by dividing the average
age of the trees destroyed by the rotation age for the specific forest
productivity class appropriate for the affected acres. In no instance shall
the annual reduction exceed eighty percent (80%) of the original forest value
per year. In order to obtain a reduction, the landowner shall, on or before
January 1, following the destruction, make written application to the assessor
indicating the legal description of the lands in question and stating all
pertinent facts. The assessor may investigate the facts and may request
assistance from the state tax commission in performing such investigations. If
the requirements are met, such forest lands shall be assessed and taxed on the
reduced basis herein provided.
    (7)  Buildings and other improvements, other than roads, located on forest
lands shall be appraised, assessed and taxed as provided by applicable laws
and rules.
    (8)  Effective January 1, 2004, there is created within the Idaho state
tax commission the CFTM. The membership of the CFTM shall be:
    (a)  A nonvoting chairman who shall be the member of the Idaho state tax
    commission assigned to property tax matters;
    (b)  Four (4) members selected from the membership of the intermountain
    forest association;
    (c)  One (1) member selected from the membership of the Idaho forest
    owners' association;
    (d)  Five (5) members selected from the membership of the Idaho
    association of counties; and
    (e)  The state superintendent of public instruction or his/her designee,
    in a nonvoting capacity.
The CFTM may retain a forest economist selected by a majority of its members
to advise the CFTM.
    The costs of each CFTM member shall be borne by the respective member. The
fees and costs of the forest economist shall be borne as determined by the
CFTM.
    The CFTM may prepare and deliver written reports to the house of
representatives revenue and taxation and senate local government and taxation
committees of its findings and recommendations for legislation as the need may
arise. The CFTM may meet periodically as determined by its chairman or the
CFTM.