Transcript UNDERSTANDING PUV FORESTRY RATES

UNDERSTANDING PUV
FORESTRY RATES
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7/17/2015
Mark Megalos
Extension Forestry Specialist
Asst. Extension Professor
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NC's Deferred Property
Tax Program
THIS TALK:
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How Forestry Rates Are Calculated
Land Transfer Specifics
Examples (Case Studies)
What’s Happening ( Education)
Summary
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Ownership Tenure
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Residence-qualifies immediately
Non-residence-4 years immediately
preceding the date of application
Exception-land already qualified may
continue if new owner makes
application within 60 days of
acquisition, and
 Continues
same use &
 Accepts deferred tax lien
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“Sound forest management”
clause
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Enforced by the county tax office
via a forest management plan
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Compliance checks
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Landowner is responsible to
implement their forest
management plan
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Sound Management-Forestry Plan
1. Landowner objectives
2. Maps, plats, aerial photos
3. Forest/stand
inventory/description
4. Forest management prescriptions
5. Harvest dates, methods and
regeneration strategies
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Key points…
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A written forest management plan
must be submitted to the county
tax office to qualify for PUV
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A forester yourself or L.O. can
write the plan.
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Plan must be silviculturally sound
and involve commercial
production of timber
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Forestry Plan
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Must have commercial timber
production as a major objective
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Practices must be implemented
on a timely basis
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NOTE: Up to 20 acres of woodland may
be brought under use-value with an ag
or hort application without a plan
(Buffers)
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PUV Application Procedure
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Landowners must apply
“Normal” application window is
during the regular listing period
(January)
“Within 30 days of receipt of a
notice of change in valuation” or;
Within 60 days of acquisition of
already qualified property
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FORESTRY PRESENT USE VALUE
RATES- MRLA 133A (2012)
MLRA
Class Class Class Class Class
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2
3
4
5
133A
Upper
CP
$395
$235
$195
$90
$45
PUV Summary
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PUV is an effective tax deferment
Protects WORKING greenspace
Production, sound management and
income requirements exist
Landowner must enroll
Deferred taxes become due when land
use changes, unless:
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new use conforms to program,
new owner agrees to maintain PU, and
assume tax liability (3 preceding years)14
THANKS! 
Forestry Extension
919-512-1202
[email protected]
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