Forest Incentive Programs - Property Taxes for New York

Type of Tax

Reduction in fair market value and a yield tax

For land enrolled before 9/1/1974, land is assessed on bare market value, timber is exempt

For land enrolled on or after 9/1/1974, the assessed value is 80% of the fair market value or $40/acre, whichever is less

For both programs the yield tax is 6% of the timber stumpage value

Law

New York Real Property Tax Law 480 for land enrolled before 9/1/1974 and 480-a for land enrolled on or after 9/1/1974

Objective

To provide a means by which present and future forest lands may be protected and enhanced as a viable segment of the State’s economy and to assist in the protection of the environmental benefits of the State’s forest resources

Requirements

Minimum acreage is 15 acres under 480 and 50 acres under 480a

Minimum stocking of 500 TPA or 60 ft² BA/A

Must have a plan approved by the Department of Environmental Conservation under 480a

Minimum commitment of 10 years and annual commitment for next 10 years under 480a

Evidence of use for previous 15 years under 480a

Change in use results in penalty up to 2.5 times the taxes saved plus interest under 480a

Program Administration

A private forestry consultant creates the management plan. Department of Environmental Conservation handles the application and verifies plan under 480a. The Chief of the Division of Forestry sends certified application to county tax assessor.