Page 27 - Georgia Forestry - Fall 2017

AVERAGE TIMBERLAND PROPERTY TAX/ACRE UNDER PREFERENTIAL PROGRAMS BY STATE
12 10 8 6 4 2 0
AL AR FL LA MS NC SC TX VA GA GA* $2.00 $1.25 $3.22 $2.20 $2.70 $1.60 $2.75 $3.15 $3.07 $6.65 $11.68
How big is the problem?
Our analysis shows that despite past leg- islative accomplishments, timberland ad valorem taxes in Georgia are still not competitive with surrounding states. Anecdotal evidence suggests that inves- tors who value sustainable management and economic returns of timberland are walking away from the state, which ultimately reduces the public value of timberland to Georgia.
It is extremely complex to compare property taxes on timberland across states because they are determined by many factors including a community’s reliance on property taxes for public ser- vices, the level of community services, and a range of criteria based on how a tract of timberland is valued, such as
by its soil productivity, location, market accessibility, and sometimes the types of forest standing on the land.
Plus, data on timberland property taxes are not readily available in many south- ern states. Nevertheless, our preliminary study conducted at the University of Georgia Warnell School of Forestry and Natural Resources Harley Langdale, Jr. Center for Forest Business (see table) sug- gests timberland property taxes in Georgia are among the highest in the South, with an average of about $6-$7 per acre under CUVA and FLPA compared to $2-$4 per acre in most other neighboring states under similar preferential programs.
Property taxes on timberland not enrolled in CUVA or FLPA are much higher, normally in the range of $10-$15/acre or even higher if it is located on the urban periphery, suggesting a potential conver- sion to uses other than timber production.
How did
we get here?
The primary question politicians and tim- berland owners often ask is why are we at a disadvantage if we have passed and protected FLPA and CUVA? What makes Alabama, South Carolina, Florida, and Mississippi better places to invest in tim- berland? The answer comes down to two issues that make Georgia significantly different:
1 VALUATION
Our 159 counties (more than most other states in the nation)
do not all operate the same. There are 159 boards of tax assessors and there is a tremendous lack of uniformity in how timberland values are assessed when it comes to timberland not enrolled in
*Average based on a sample of more than 500,000 acres of timberland in GA
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dollars per Acre
*NON-Preferential