Page 26 - Georgia Forestry - Fall 2017

Working’
Forestrys
Viability
Once Again Hangs in the Balance
Property tax analysis reveals Georgia
is still not competitive with surrounding states Story by Bob Izlar and Yanshu Li, Photography by Stephen B. Morton
Annual property taxes on timberland remain one of forest landowners’ top concerns. The stress of taxes on investments with such low liquidity and higher risks than agricultural production comes on top of increas- ing pressures including: conversion from urban development; competition from other states and countries; and
depressed timber markets since the Great Recession. At the same time, our rural communities have become increasingly reliant on taxing forestland to fund schools and local government. Annual property taxes collected by local taxing units have increased
68 percent from $6.5 billion in 2000 to $10.9 billion in 20151. So we find ourselves once again at another important juncture in determining the economic viability of growing trees in Georgia.
Given the lengthy interval between harvests, taxes are a significant carrying cost that have a notable affect on the potential profit from a timberland investment. So for several decades, the Georgia Forestry Association (GFA) has led in the discussion of timberland ad valorem taxes in Georgia. It has raised awareness of the issues, helped pass keystone constitutional amendments and legislation to establish CUVA (Conservation Use Valuation Assessment) and FLPA (Forest Land Protection Act), and gained critical allies in keeping timberland a viable investment for landowners in the state.
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