Indiana (Summary)
Last Updated: March 2020
Tax Type: Current Use Tax
Description: Reduced assessed value on classified forest land. The assessed value is the current value of a 1921 dollar adjusted for inflation for all classified forestland.
Law: Ind. Code §§ 6-1.1-6-2 to 6-27
Objective: Encourage better woodland and wildlife stewardship, and protection of Indiana watersheds
Principal Forest Property Tax Incentive Program:
Program legal-common name: Classified Forest & Wildlands Program
Program Requirements
Min/Max Acreage: 10 or more contiguous acres, at least 50 feet wide; by special permit, 10 percent of parcel may be devoted to special uses consistent with legal intentions; parcels divided into two or more separate parcels must each have at least 10 acres of eligible land in each tract.
Min. Stocking Growth:
at least 400 timber producing trees per acre (Forest Planation)
40 ft2 basal area per acre or at least 1000 trees per acre (Native Forest Land)
Forest Management Plan: A written forest management plan, which may be prepared by the DNR district forester or by a wildlife biologist or professional forester, ire required prior to application.
Evidence of Use: The District Forester will inspect the property at least once every 7 years. Landowners are required to fill out and return an annual report that is used by the District Forester to keep up-to-date records of the classified lands.
Duration of Enrollment: N/A
Penalties for Use Change: Total back taxes (up to 10 years) + 10% interest. Properties that are entered in the program after 2006 are subject to an additional withdrawal penalty of $100 per withdrawal and $50 per acre withdrawn.
Program Administration
State: The Division of Forestry of the Department of Natural Resources establishes rules, prescribes management plan, approves and notifies county assessor and recorder
County Tax Assessor and Commissioner: Calculates FMV without timber value
University: N/A
Landowners: Must keep livestock out of classified land. File application to the Division of Forestry of the Department of Natural Resources, submit annual report, and follow the forest management plan.
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