Laws, Regulations and Annotations
Search
Business Taxes Law Guide—Revision 2024
Timberland
Revenue and Taxation Code
Division 1. Property Taxation
Part 2. Assessment
Chapter 3. Assessment Generally
Article 1.7. Valuation of Timberland and Timber
- 431 Definitions
- 432 Rule or regulation adoption
- 433 Timberland production zone notification
- 434 Grading timberland; instruction
- 434.1 Grading timberland; rules
- 434.2 Timber advisory committee
- 434.5 Value of timberland
- 435 Valuation of timberland
- 436 Timber exempt from property taxation
- 437 Addition to assessed value of a taxing agency
431. Definitions. For purposes of this article, the following terms have the following meaning:
(a) "Timber" means trees of any species maintained for eventual harvest for forest products purposes, whether planted or of natural growth, standing or down, on privately or publicly owned lands, including Christmas trees, but does not mean nursery stock.
(b) "Timberland" means land zoned pursuant to Chapter 6.7 (commencing with Section 51100) of Part 1 of Division 1 of Title 5 of the Government Code.
(c) "Timber Advisory Committee" means a standing committee appointed by the board composed of one representative of the Board of Equalization, one representative of the State Board of Forestry and Fire Protection, five assessors from the rate adjustment counties defined in Section 38105, and one member representing small-scale timber owners, and one member representing large-scale timber owners.
History—Amended by Stats. 1998, Ch. 972, in effect January 1, 1999.
432. Rule or regulation adoption. Any rule or regulation required to be adopted pursuant to this article shall be in compliance with procedures set forth for adoption of rules under the Administrative Procedure Act.
History—Added by Stats. 1976, Ch. 176.
433. Timberland production zone notification. When land is zoned as timberland production a notation of such zoning shall be made on the assessment rolls by the words "Timberland Production Zone" or the initials "T.P.Z."
History—Amended by Stats. 1982, Ch. 1489, Sec. 36.
434. Grading timberland; instruction. On or before September 1, 1976, the board, after consultation with the Timber Advisory Committee, shall prepare instructions setting forth temporary criteria and procedures for grading timberland on the basis of its site quality and operability. Five general site quality classes shall be established. These classes shall be the same as those adopted by the State Board of Forestry and Fire Protection pursuant to subdivision (d) of Section 4528 of, and Section 4551 of, the Public Resources Code. Within each of the five site quality classes, appropriate classes of operability shall be established, based on factors, such as accessibility, topography, and legislative or administrative restraints. On or before December 31, 1979, these classes shall be designated as operative or inoperative. Commencing with January 1, 1980, the board shall determine appropriate designations of operability. On or before March 1, 1977, each assessor shall grade all timberland within the county on the basis of these instructions. The assessor’s grading is subject to the appeals procedure established by law for other assessments, as provided in Chapter 4 (commencing with Section 721) of Part 2 and Chapter 1 (commencing with Section 1601) of Part 3.
History—Amended by Stats. 1998, Ch. 972, in effect January 1, 1999.
434.1. Grading timberland; rules. (a) On or before March 1, 1977, the board after consultation with the Timber Advisory Committee shall adopt rules setting forth final procedures for grading timberland on the basis of its site quality and operability. Such rules shall follow the format set forth in Section 434.
(b) On or before March 1, 1978, each assessor in accordance with rules set forth in subdivision (a) shall grade all timberland in his county. The assessor’s grading is subject to the appeals procedure established by law for other assessments as provided in Chapter 1 (commencing with Section 1601) of Part 3.
History—Added by Stats. 1976, Ch. 176.
434.2. Timber advisory committee. Within 30 days of the effective date of this section, the board shall appoint the timber advisory committee as defined in subdivision (c) of Section 431.
History—Added by Stats. 1976, Ch. 176.
434.5. Value of timberland. (a) On March 1, 1984, for the Redwood Region and Pine-Mixed Conifer Region, and on January 1, 1985, for the Whitewood Subzone of the Redwood Region, and January 1 of each year thereafter, the value per acre of timberland zoned under the provisions of Section 51110 or Section 51113 of the Government Code shall be determined from the following schedule:
| Redwood Region | |
|---|---|
| Site I | $180 |
| Site II | $150 |
| Site III | $130 |
| Site IV | $114 |
| Site V (and inoperable) | $35 |
| Pine-Mixed Conifer Region | |
| Site I | $98 |
| Site II | $69 |
| Site III | $56 |
| Site IV | $39 |
| Site V (and inoperable) | $23 |
| Whitewood Subzone of the Redwood Region | |
| Site I | $130 |
| Site II | $95 |
| Site III | $80 |
| Site IV | $60 |
| Site V (and inoperable) | $30 |
For purposes of this section:
(1) "Redwood Region" means all those timberlands located in Del Norte, Humboldt, Sonoma, Marin, Monterey, Santa Cruz, and San Mateo Counties and that portion of Mendocino County which lies west and south of the main Eel River.
(2) "Whitewood Subzone of the Redwood Region" means that timberland located within the Redwood Region within which the assessor has determined that redwood did not exist as a species in the composition of the original timber stand, or which has not been replanted with redwood for commercial purposes.
(3) "Pine-Mixed Conifer Region" means all other timberlands outside the Redwood Region.
When the assessor, pursuant to Section 434, designates a timberland parcel or portion thereof as inoperable, that timberland parcel or portion thereof shall be valued as if it is Site V.
(b) In 1985, the board shall determine the current value of timberland by the following process:
(1) For each fiscal year between July 1, 1979, and June 30, 1984, divide the total value of all timber harvested within the state, less miscellaneous forest products not reported by board foot volume, by the total volume of timber harvested, as reported pursuant to Section 38402. Average the five fiscal year values to obtain the five-year periodic immediate harvest value.
(2) For each fiscal year between July 1, 1978, and June 30, 1983, follow the same procedure as described in paragraph (1).
(3) Divide the value obtained by paragraph (1) by the value obtained by paragraph (2) to obtain the percentage change, rounded to the nearest one-tenth of 1 percent.
(4) Increase or decrease to the nearest dollar the full market values contained in subdivision (a) by one-half of the percentage change determined by paragraph (3).
(c) Beginning January 1, 1986, and each year thereafter, the board shall determine the current value of timberland using the same procedure as described in subdivision (b), except that this adjustment shall be made to the prior year’s adjusted values, and the five-year periodic immediate harvest values shall be successively one year more recent.
(d) The board shall certify the values determined pursuant to this section to the county assessors by November 30 of each year.
(e) The Legislature finds and declares that the foregoing values are consistent with the taxation of timberland used primarily for growing timber and that these values are consistent with the intent of subdivision (j) of Section 3 of Article XIII of the Constitution.
History—Amended by Stats. 1997, Ch. 940, in effect January 1, 1998.
435. Valuation of timberland. (a) In preparing the assessment roll for the 1984–85 fiscal year and each fiscal year thereafter, the assessor shall use as the value of each parcel of timberland the appropriate site value pursuant to Section 434.5 plus the value, if any, attributable to existing, compatible, nonexclusive uses of the land. Assessments of values attributable to compatible uses determined in accordance with this part are subject to the appeals procedure established by law for other assessments.
(b) Nothing in this article shall prevent the assessor in valuing timberland from taking into consideration the existence of any mines, minerals, and quarries in or upon the land being valued, including, but not limited to, geothermal resources and oil, gas, and other hydrocarbon substances.
(c) The provisions of this article shall not apply to any structure on the land being valued or to an area of reasonable size used as a site for approved compatible uses.
History—Amended by Stats. 1983, Ch. 1198, Sec. 2.
436. Timber exempt from property taxation. On the lien date for the 1977–78 fiscal year and thereafter, all timber on both privately and publicly owned lands shall be exempt from property taxation, including possessory interest taxation, and shall not be assessed for taxation purposes. Nothing herein shall preclude the assessment of trees standing on land not zoned as timberland production under this article for purposes of property taxation based on their aesthetic or amenity value.
History—Amended by Stats. 1982, Ch. 1489, Sec. 38.
437. Addition to assessed value of a taxing agency. Whenever the debt limit of a taxing agency is based wholly or in part on the assessed value of the agency, there shall be added to such assessed value the assessed valuation equivalents of revenue amounts certified pursuant to Section 27423 of the Government Code.
The assessed valuation equivalents for revenue amounts certified pursuant to Section 27423 of the Government Code shall be derived by multiplying such amounts by a factor of 100 and dividing the product by the secured tax rate for the prior year.
History—Amended by Stats. 1984, Ch. 678, Sec. 23.