2014 Idaho Statutes
Title 63 - REVENUE AND TAXATION
Chapter 17 - TAXATION OF FOREST LANDS AND FOREST PRODUCTS
Section 63-1705 - TAXATION OF FOREST LANDS UNDER THE PRODUCTIVITY OPTION.
(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) 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 zones for the next ten (10) year period. The ceiling for taxation purposes for forest land values during such ten (10) year period will be capped at thirty percent (30%) above the 2011 forest land values. The annual changes for taxation purposes shall be limited to not more than a five percent (5%) annual increase or decrease from the immediate prior year based upon the 2005 "user's guide" valuation model, provided however, that no decrease shall be in an amount less than the established floor nor increase above the established ceiling.
Actual annual valuation calculations shall also be tracked, though not necessarily utilized for taxation purposes. Actual annual valuation calculations may drop below the floor or rise above the ceiling. Forest land values derived by the model will be used as the forest land value for taxation purposes only when the derived value is between the floor and the ceiling. Furthermore, the actual annual valuation calculations shall not exceed a five percent (5%) adjustment from the previous year's valuation calculation. When the model derived values for a given year are below the floor, the forest land value for taxation purposes will be equal to the floor value for that year. When the model derived values in a given year are above the ceiling, the forest land value for taxation purposes will be equal to the ceiling for that year.
Notwithstanding any other provision of law, the state tax commission is authorized to cite the user's guide in its rules and shall:
(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) There is created within the Idaho state tax commission the CFTM. The membership of the CFTM shall be:
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.
History:
[63-1705, added 1982, ch. 123, sec. 5, p. 353; am. 1984, ch. 237, sec. 2, p. 568; am. 1996, ch. 322, sec. 61, p. 1090; am. 1998, ch. 198, sec. 1, p. 711; am. 2000, ch. 156, sec. 2, p. 397; am. 2005, ch. 24, sec. 2, p. 75; am. 2011, ch. 5, sec. 1, p. 11; am. 2012, ch. 9, sec. 1, p. 14.]
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