Indiana

Property Classification:

For property tax classification forest land is considered either "classified" or "woodland". Classified forest land is further broken down into sub-types.

Classified Forest Land:

Classified forest land is land that has been applied for and approved for specific programs administered by the Indiana Department of Natural Resources or the county surveyor.

Land containing at least 10 acres may be classified and assessed as either "forest plantation", "Wildlands", or "native forest land" if certain qualifications are met. (IC 6-1.1-6)

Forest Plantation - Land may be classified as a forest plantation if it is cleared land which has growing on it a good stand of timber producing trees as that concept is understood by competent foresters. Certain trees are not considered timber-producing trees.

Wildlands - Land may be classified as wildlands if it contains one or more of the following:

(1) Grasslands that are dominated by native grasses or intermixed with other native herbaceous vegetation.

(2) Wetlands that support a prevalence of native vegetation adopted for saturated conditions.

(3) Early forest successional stands that are dominated by native herbaceous and woody vegetation that will develop into native forest land.

(4) Other lands the department determines is capable of supporting wildlife and conducive to wildlife management.

(5) A body of water.

Native Forest Land - Land may be classified as native forest land if it has never been plowed or cultivated and contains at least 40 square feet of basal area per acre or at least 1,000 timber producing trees, of any size, per acre.

Non-timber producing trees - For purposes of this chapter, the following types of trees are not considered timber producing trees: dogwoods (Cornus); water-beech (Carpinus); ironwood (Ostrya); red bud (Cercis); pawpaw (Asimina); black haw (Viburnum); pomaceous trees (Malus); Christmas trees which are grown for commercial purposes; and other trees listed by the state forester.

In addition, a parcel of land may not be classified as a "forest plantation", "wildlands", or "native forest land" if:

(1) A dwelling or building is situated thereon

(2) It is grazed by domestic animals,

(3) A parcel of land may not be classified as native forest land or as a forest plantation if it contains an open area. However, this section does not apply if the open area is authorized by a special permit issued by the state forester

Application - An application to classify land as a forest plantation, wildlands, or native forest land must be made in duplicate with and approved by the State Forester and must include the plats surveyed, the assessment required and entered by the county assessor, and the signatures of the owner, professional surveyor, other person described in rules adopted under IC 6-1.1-6-9(c) and county assessor.

Assessment of Classified Forests - Land which is classified as "native forest land", "wildlands", or "forest plantation" shall be assessed at the current value of a 1921 dollar per acre for general property taxation purposes. The Consumer Price Index for All Urban Consumers (CPI-U) is used for the adjustment for inflation.

Withdrawal Penalty - Landowners must notify the District Forester when the land changes hands or they want to withdraw the land from the program. If the land is withdrawn from classification, the back taxes (up to 10 years) plus a 10% per year interest penalty must be paid to the county. Properties that are entered in the program after June 30, 2006 are subject to an additional withdrawal penalty of $100 per withdrawal and $50 per acre withdrawn.

Other Classifications:

Windbreaks - Land may be classified and assessed as windbreak (a field windbreak) if it meets the following requirements (IN Code § 6-1.1-6.2-1):

(1) it abuts a fence or property line;

(2) it abuts arable land;

(3) the landowner enters into an agreement with the Department of Natural Resources establishing standards of windbreak management;

(4) it is at least 50 feet wide;

(5) it does not contain a dwelling or other usable building; and

(6) no part of it lies within a licensed shooting preserve.

Application - An application to classify land as a windbreak must be made with and approved by the Department of Natural Resources and must also include the plats surveyed, the assessment required and entered by the county assessor, and the signatures of the owner, registered land surveyor, and county assessor.

Assessment - Land that is classified under this chapter as a windbreak shall be assessed at the current value of a 1921 dollar per acre for general property taxation purposes. However, ditch assessments on the classified land shall be paid.

Filter strips - Land may be classified as a filter strip if it meets the following requirements:

Filter strip refers to a strip or an area of vegetation for removing sediment, organic matter and other pollutants from runoff and wastewater.

(1) the land is adjacent to an open water course (such as a ditch, creek, or river) or an open body of water (such as a wetland lake);

(2) the land is at least 20 but not more than 75 feet wide;

(3) the land does not contain a dwelling or other usable building;

(4) the land is not used for livestock grazing;

(5) no part of the land lies within a licensed shooting preserve; and

(6) the landowner enters into an agreement with the drainage board of jurisdiction along regulated drains and the county surveyor along nonregulated drains, with concurrence of the local soil and water conservation district offices.

Application - Finally, an application to classify land as a filter strip must be filed with the county surveyor and must include the plats surveyed, the assessment required and entered by the county assessor, the signatures of the owner, registered land surveyor (if used), county surveyor, and county assessor, and a letter of concurrence in the classification from the soil and water conservation district in which the land is located.

Assessment - Land that is classified under this chapter as a filter strip shall be assessed at the current value of a 1921 dollar per acre for general property taxation purposes. However, ditch assessments on the classified land shall be paid.

The state of Indiana does not have a severance or yield tax on timber or timber products.

The Division of Forestry of the Indiana Department of Natural Resources. 2016. 2016 Legislative changes to the classified Forest & Wildlands program.

The Division of Forestry of the Indiana Department of Natural Resources. Classified Forest & Wildlands. https://www.in.gov/dnr/forestry/4801.htm