Property taxation of private forests in the United States: A national review

Abstract

Property taxation incentives are an important tool for influencing the management of the nation's private forests. In 2000, 50 states administered 66 programs that provided preferential tax treatment to forest landowners. These programs vary considerably in type, tax relief, and administration. A survey of state administrators of private forestry programs reveals that forest tax programs are only modestly conforming to standards commonly used to judge tax policy, and only modestly accomplishing the objectives for which they were created. Effective forest property tax programs should be easily understood, provide efficient incentives for sound forest practices, and complement the state's existing forestry programs.