Forest Incentive Programs - Property Taxes for California

Type of Tax

Current Use Value and Yield tax

• Valued at the present worth of the income and no less than two dollars ($2)

• Yield tax of 2.9%

Law

CA Revenue and Tax Code 423.5-437 and Revenue Tax Code part 18.5 of Division 2, pamphlet # 43 LDA

Objective

The tax is paid on a quarterly basis to the Board of Equalization, which returns it to the counties where the timber was harvested.

Requirements

10-year minimum enrollment and a fee for changing use of land

Management plan required

Each county sets its own penalty for withdrawal

Each county sets its own minimum acreage requirement, but the law states that this may not exceed 160 acres.

Program Administration

The State Department of Forestry developed five site quality classes. The State Board of Equalization pays taxes on a quarterly basis to the County Commissioners