California (Summary)
Last Updated: March 2020
Tax Type: Current Use Value and Yield Tax
Description: Annual timberland property tax is based on its current use. Standing timber is exempt from local ad valorem tax system and instead is subject to a state tax at the time of harvest. The revenue generated from timber yield tax is collected by the State Board of Equalization and then is distributed back to the counties where the timber was harvested.
Law: CA Rev. & Tax Code 423.5-437 and Rev. Tax Code part 18.5 of Div. 2
Objective: : Encourage prudent and responsible forest resource management calculated to serve the public's need for timber and other forest products, while giving consideration to the public's need for watershed protection, fisheries and wildlife, employment opportunities, regional economic vitality, and recreational opportunities alike in this and future generations.
Principal Forest Property Tax Incentive Program:
Program legal-common name: General property tax program (Timberland Production Zone, Open Space land)
Program Requirements
Min/Max Acreage: Parcels zoned as TPZ may not be divided into parcels containing less than 160 acres unless the original owner prepares a joint timber management plan approved by a registered professional forester for the parcels to be created.
Min. Stocking Growth: N/A
Forest Management Plan: N/A
Duration of Enrollment: Initial term of 10 years. After 10 years, the TPZ status automatically renews each year.
Evidence of Use:
Penalties for Use Change: Upon immediate rezoning of a parcel in a timberland production zone, a recoupment fee is imposed on the landowner and becomes a lien against the property.
Program Administration
State: The State Board of Equalization provides the values annually to assessors.
County Tax Assessor and Commissioner: Local county assessors assess the TPZ based on the values determined by the Board of Equalization.
University: N/A
Landowners: File application. The owner of the land bears the burden of demonstrating that the use of the land is primarily agricultural.
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