Timber Tax Return

The Timber Yield Tax is a property tax paid by timber owners when they harvest trees, or timber. The California Department of Tax and Fee Administration (CDTFA) administers and collects the Timber Yield Tax, which, after state administrative costs, is allocated to the counties where the timber was harvested. The CDTFA also determines the harvest values of timber and timberland production zone values.

Prior to 1976, timber and timberlands were subject to an annual ad valorem property tax administered by each individual county assessor. The Timber Yield Tax Law, passed in 1976, replaced the ad valorem tax on standing timber with a yield tax on the value of harvested timber. While the timber yield tax is a state tax deferred until the time of harvest, the taxation of timberland is still part of the local annual property tax that is administered by each county assessor.

Filing Requirements

For most accounts, timber yield tax returns must be filed for each calendar quarter. However, if Christmas trees are the only forest product you harvest and you harvest them in the fourth quarter of each year, you will file a return only for the fourth quarter of each year. The filing date is the last day of the month following the end of the quarter.

You must file your timber yield tax return as long as you remain registered with CDTFA, even if you do not harvest any timber during a reporting period or if all of your harvests for the reporting period qualify for the low-value exemption.

Penalty and Interest

The following penalty charges may be assessed for filing a late return and/or late payment:

• Late-file penalty – One hundred dollars ($100) if the tax return is not filed by the due date.
• Late-pay penalty – Ten percent (10%) of the tax amount due if the tax is not paid by the due date.
• Late-file and late-pay penalty – Ten percent (10%) or one hundred dollars ($100), whichever is greater, if the tax return is not filed and paid by the due date.

Interest also applies to late payments. The interest rate applies for each month or fraction of a month that the payment is late.

Would you like to close your account?

If this is your final return and you would like to close out your timber tax account, select Yes.

If this is not your final return and you plan to continue harvesting, select No.

Did you harvest this period?

If you harvested any timber during this reporting period, select Yes.

If you did not harvest any timber during this reporting period, select No.

Did you harvest Christmas Trees this period?

If you harvested any Christmas trees during this reporting period, select Yes.

If you did not harvest any Christmas trees during this reporting period, select No.

Harvest Information

Pre-Populated Harvest Plan/Contract No.

The online services system will pre-populate all valid plan/contract numbers associated with the Timber Yield Tax account.

Next, click the Add Plan Info hyperlink next to the corresponding Harvest Plan/Contract Number for which harvesting occurred and complete the following required fields:

Timber Value Area. For most counties, the system will automatically determine this field. For counties with split Timber Value Areas, select the Timber Value Area from the drop-down menu.

Total Acres Cut. Enter the total acres cut for this timber harvest plan/contract. If you are not able to determine the total acres cut, enter the number “1” in this field.

Species. Click the Species hyperlink to add the Harvest Detail information to the Harvest Report (refer to the Harvest Detail section below for more information).

To add a new Harvest/Plan Contract No.

Click the Add a Record hyperlink and complete the following required fields:

Harvest Plan/Contract No. Enter the Department of Forestry and Fire Protection (CAL FIRE) harvest plan number or enter the contract number for a harvest on federal land.

Harvest/Sale Name. Enter the harvest plan name or sale name of the harvest operation.

County of Harvest. Select the name of the county of harvest from the drop-down menu.

County Code. The system will automatically determine this field.

Timber Value Area. For most counties, the system will automatically determine this field. For counties with split Timber Value Areas, select the Timber Value Area from the drop-down menu.

Total Acres Cut. Enter the total acres cut for this timber harvest plan/contract. If you are not able to determine the total acres cut, enter the number “1” in this field.

Species. Click the Species hyperlink to add the Harvest Detail information to the Harvest Report (refer to the Harvest Detail section below for more information).

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Harvest Detail

Click the Add a Record hyperlink to complete the following required Logging Information:

Species Code. Select the species code for the species or products to be reported from the drop-down menu.

Logging Code. Select the logging code from the drop-down menu.

Average Volume Per Log (AV/L) Calculator

Note: Not all species require an AV/L. If the species does not require an AV/L, enter the Volume Harvested.

Net Linear Footage. Enter the net linear footage harvested for the selected species.

Net MBF (thousand board feet). Enter the net volume, rounded to the nearest 1,000 board feet (MBF) as measured by the Scribner short-log. (For example: If you harvested twenty thousand board feet (20,000), enter as 20 (MBF)).

Average Volume Per Log (BF). The system will automatically determine this field.

Size Code. The system will automatically determine this field.

Volume Harvested (MBF). For species that do not require an AV/L, enter the net volume, rounded to the nearest 1,000 board feet (MBF) as measured by Scribner short-log. (For example: If you harvested twenty thousand board feet (20,000), enter as 20 (MBF)).

For additional information regarding the AV/L, please refer to the Average Volume Per Log Calculator on our website.

Click Add

Note: If additional species/products need to be reported on the same harvest plan/contract number, click the Add a Record hyperlink, and complete the Logging Information and AV/L or Volume Harvested information above.

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Click OK after all species/products have been added. This will bring you back to the Timber Tax Harvest Report. Click OK to return to the summary of Harvest Information.

Click Next after all harvest activity has been reported.

• Tax Guide for Timber Yield Tax
• Online Return Filing Tutorial
• Average Volume Per Log Calculator
• Timber Yield Tax Law
• Timber Yield Tax Regulations
• Publication 86, California Timber Yield Tax
• Publication 87, Guide to California Timber Yield Tax