Publication 87, Guide to the California Timber Yield Tax
Timber Yield Tax Basics

This page contains basic information on the timber yield tax, including which harvests and products are taxable, who has the responsibility for paying the tax, how and when the tax applies, and information on the registration process.

General application of tax

The timber yield tax applies to the harvest of forest trees, whether standing or down, for wood products. As a timber owner, you generally owe the timber yield tax when your trees are harvested:

  • Regardless of the number of trees removed.
  • Whether you sell, give away, trade, or use the trees yourself.
  • Whether you have received any money for the trees.
  • Whether the trees were burned, diseased, dead, dying, or down.
  • Whether the trees were harvested on public or private land (except for Indian tribal lands).
  • Whether the land is designated as a Timberland Production Zone or zoned for some other use.

Please note: You owe the tax even though you may have filed an exemption form with the California Department of Forestry and Fire Protection (Cal Fire). Such “exemptions” refer only to state timber harvest regulations and do not affect your tax liability.

Exceptions

You do not owe the timber yield tax if:

  • The trees are left lying on the ground, unused.
  • You transfer ownership of the timber to a logger or to another person before the trees are cut and are, therefore, not the property of the timber owner. For this to apply, you must have a written contract that specifically transfers ownership of the trees to the other party before they are cut down. Please note: Most harvest contracts for felling and marketing timber do not transfer ownership of the timber before harvest.
  • You remove trees from Indian tribal lands.
  • You are a tax-exempt organization that does not pay property taxes on the land where the trees are growing.
  • Your timber harvest has an immediate harvest value of $3,000 or less within a quarter. Visit Regulation 1024, Exempt Timber.

You pay tax based on CDTFA-established timber values

The timber yield tax you pay is based on values established by the state for various timber products, as determined by analysis of market transactions in your area. You do not pay tax based on the amount you receive for your trees or wood products. CDTFA issues schedules of timber harvest values twice each year.

Taxable wood products

Taxable wood products include:

  • Softwood logs from trees such as cedar, fir, hemlock, pine, redwood, and spruce.
  • Other, miscellaneous wood products such as fuel (fire) wood, chipwood, poles and pilings, posts, split products (shingles and shakes), and Christmas trees.
  • Hardwood logs from trees such as alder, chinquapin, cottonwood, eucalyptus, madrone, maple, oak, tanoak, and willow.
  • Cull logs (logs with less than one-quarter sound, usable wood).

Other products from forest trees, such as branches, burls, cones, and seeds, are not subject to the tax.

In addition, the timber yield tax does not apply to the following:

  • Orchard trees (fruits and nuts)
  • Nursery stock
  • Live Christmas trees sold in containers

Timber owner must pay the tax

As a timber owner, you have the responsibility for filing timber yield tax returns and paying any tax due. This is true even if you made a verbal or written agreement with another person stating that they will pay the tax.

Timber owner, defined

You are considered a timber owner if:

  • You own the trees immediately prior to their being felled or harvested; or
  • You are the first person or agency (not exempt from property tax) to acquire legal or beneficial rights to timber after felling, when the trees were owned by a state, federal, or other tax-exempt entity. Examples of such agencies are the U.S. Forest Service (USFS) and Bureau of Land Management (BLM).

A timber owner can be an individual, government agency, or legal entity such as a partnership, limited liability company, or corporation.

Tax applies when the trees are moved or used

The timber yield tax applies when your trees are cut down and/or moved to any storage or wood processing area, such as a sawmill. If you use the logs yourself, the tax applies when the timber is moved to a storage area somewhere else on your property or when they are put into use, whichever occurs first.

CDTFA automatically registers many timber owners

CDTFA receives notice of timber harvest plans filed with Cal Fire and of federal government agency timber harvest contracts. If you filed harvest forms with Cal Fire or purchased a timber contract from federal agencies such as the USFS or BLM, CDTFA's Timber Tax Program will establish a timber yield tax account for you and assign an account number. You will remain registered with CDTFA—and will be required to file timber yield tax returns—until you notify us that you no longer intend to harvest timber.

Exception: CDTFA will not register the owners of timber harvests that appear to have, in total, an immediate harvest value of $3,000 or less within a quarter.

Other timber owners must contact CDTFA to register

If you own and harvest timber without authorization from Cal Fire or the federal government, use a timber harvest plan approved for someone else, or sell Christmas trees from a Christmas tree farm, it is your responsibility to contact CDTFA to register for the timber yield tax.

How to register

To register for a timber yield tax account, a seller's permit, and other permits, licenses, or accounts, visit our Online Services and under the Registration section, select Register a New Business Activity. Online registration is a convenient way to register and is available 24 hours a day.

Information required for registration

Whether you are automatically registered or register for a tax account online, you will be asked to furnish the following information:

  • The name(s) of the legal timber owner(s)
  • Your driver license number
  • Your Social Security number
  • Your telephone number
  • Your mailing address (and county name)
  • The type of ownership (individual, partnership, corporation, husband and wife, domestic partner, other)
  • Type of harvest products (logs, fuelwood, Christmas trees, other)
  • First date of harvesting (cutting the trees)

CDTFA may request additional information necessary to fully complete your registration.

Please note: All information about your account is considered confidential, including your account number and even the fact that you are registered. If you want CDTFA to send forms or information about your account to another party, you will need to give specific written authorization to the Timber Tax Program or complete CDTFA-392, Power of Attorney. Your third-party representative and/or designee can also request a power of attorney after creating a profile using our Online Services.

Other taxes and regulations

The timber yield tax is a property tax based on the value of your timber and not what was paid for the timber by the mill. Other taxes, including sales tax and state and federal income tax, may apply to your operations. Complying with the requirements of the timber yield tax does not relieve you of your responsibility to comply with other applicable laws, including timber harvest laws and regulations.

Revision August 2026