An analysis of forest property tax burdens under a land and reforestation tax system: a western Washington case study

1990 ◽  
Vol 20 (5) ◽  
pp. 554-565
Author(s):  
B. Bruce Bare
Keyword(s):  
Current System ◽  
Property Tax ◽  
Land Value ◽  
Ad Valorem Tax ◽  
Tax Base ◽  
Tax System ◽  
Bare Land ◽  
Western Washington ◽  
Bare Land Value ◽  
Ad Valorem

A per acre property tax model is proposed for taxing plantation-grown timber in western Washington State. The taxable assets consist of the bare land value plus the reforestation investment necessary to establish the timber stand. Under this system, an annual ad valorem property tax, or a harvest yield tax that substitutes for all, or part, of the annual ad valorem tax is levied on the full value of the tax base. Thus, unlike the traditional case where an annual property tax is levied on modified bare land and timber values to reduce the deferred yield bias associated with long-lived timber crops, the tax base under the proposed system requires no comparable modification. A variety of input scenarios are used to compare the numerical consequences of applying the proposed tax system with those of a land only, a land plus timber, and a harvest yield tax system; all levied at full value. Further comparisons with Washington's existing forest tax system, which is composed of an annual ad valorem property tax on a legislatively mandated statutory bare land value and a 5% harvest yield tax imposed in lieu of an annual ad valorem property tax on maturing timber, demonstrates how highly modified Washington's current system has become to accommodate forest owners and temper the deferred yield bias the property tax theoretically fosters.

scholarly journals Influencing Nonindustrial Private Forest Management Through the Property Tax System

1996 ◽  
Vol 13 (1) ◽  
pp. 30-36 ◽  
Author(s):  
David M. Rathke ◽  
Melvin J. Baughman
Keyword(s):  
Property Tax ◽  
Mail Survey ◽  
Private Forest ◽  
Ad Valorem Tax ◽  
Fixed Rate ◽  
Tax System ◽  
Tax Rate ◽  
Intensively Managed ◽  
Nonindustrial Private Forest ◽  
Ad Valorem

Abstract Minnesota currently offers property tax relief to private woodland owners through the 2b timberland class in the state's modified ad valorem tax system, and through the Tree Growth Tax Law (TGTL), a fixed rate, productivity tax. Enrollment in both these laws has dramatically increased in recent years, while the average tax payment has declined in both real and nominal dollars. A mail survey of nonindustrial private forest landowners found that participants in the TGTL generally pay much lower taxes than those in the ad valorem tax classes, and TGTL lands appear to be more intensively managed for timber. However, the TGTL's incentive for timber management may be its criteria for enrollment, not the tax rate. This study makes a strong case for requiring a management plan in order to be eligible for a lower tax rate. North. J. Appl. For. 13(1):30-36.

THE CONCEPT OF REAL ESTATE TAXATION BASED ON THE AD VALOREM PRINCIPLE

2018 ◽  
Vol 8 (2) ◽  
pp. 114-117
Author(s):  
Tomasz Wołowiec
Keyword(s):  
Real Estate ◽  
Property Tax ◽  
Tax Rates ◽  
Ad Valorem Tax ◽  
Real Property ◽  
Personal Property ◽  
The Government ◽  
Special Assessment ◽  
Fair Market Value ◽  
Ad Valorem

A property tax (or millage tax) is a levy on property that the owner is required to pay. The tax is levied by the governing authority of the jurisdiction in which the property is located; it may be paid to a national government, a federated state, a county or geographical region, or a municipality. Multiple jurisdictions may tax the same property. This is in contrast to a rent and mortgage tax, which is based on a percentage of the rent or mortgage value. There are four broad types of property: land, improvements to land (immovable man-made objects, such as buildings), personal property (movable man-made objects), and intangible property. Real property (also called real estate or realty) means the combination of land and improvements. Under a property tax system, the government requires and/or performs an appraisal of the monetary value of each property, and tax is assessed in proportion to that value. Forms of property tax used vary among countries and jurisdictions. Real property is often taxed based on its classification. Classification is the grouping of properties based on similar use. Properties in different classes are taxed at different rates. Examples of different classes of property are residential, commercial, industrial and vacant real property. In Israel, for example, property tax rates are double for vacant apartments versus occupied apartments. A special assessment tax is sometimes confused with property tax. These are two distinct forms of taxation: one (ad valorem tax) relies upon the fair market value of the property being taxed for justification, and the other (special assessment) relies upon a special enhancement called a "benefit" for its justification.

scholarly journals Effects of Catastrophic Insect Outbreaks on the Harvesting Solutions of Dahurian Larch Plantations

2015 ◽  
Vol 2015 ◽  
pp. 1-12
Author(s):  
Qi Jin ◽  
Lauri Valsta ◽  
Kari Heliövaara ◽  
Jing Li ◽  
Youqing Luo ◽  
...  
Keyword(s):  
Poisson Process ◽  
Average Rate ◽  
Optimal Harvesting ◽  
Insect Damage ◽  
Dahurian Larch ◽  
Land Value ◽  
Individual Tree ◽  
Pest Outbreaks ◽  
Bare Land ◽  
Bare Land Value

Optimal harvesting under pest outbreak risk was studied on a set of even-aged Dahurian larch (Larix gmelinii) stands in northeastern Inner Mongolia, China. The effects of catastrophic pest outbreaks caused by the Siberian moth (Dendrolimus sibiricus) on the economic harvesting plan are compared through both deterministic and stochastic cases. Stand simulation is based on an individual-tree growth system. A scenario approach is applied when simulating the effects of catastrophic pest outbreaks. Insect damage is assumed to be a Poisson process with an average rate of 0.1 per year. One hundred scenarios of insect damage are created using the Poisson process to simulate the distribution of bare land value of each of the optimal regimes. Numerical results show that the optimal rotation is shortened with an increasing probability of a catastrophe. The average bare land values in the stochastic case are approximately 14.8% to 22.9% lower. Numbers of thinnings are decreased for most plots when seeking a highest bare land value, compared to the deterministic optima. If given a constant thinning rate, increasing risk-taking shortens the optimum rotation, as the model set used.

scholarly journals Land value is a progressive and efficient property tax base: Evidence from Victoria

2019 ◽  
Author(s):  
Cameron Murray ◽  
Jesse Hermans
Keyword(s):  
Capital Investment ◽  
Property Tax ◽  
Property Taxes ◽  
Tax Rates ◽  
Land Value ◽  
Property Value ◽  
City Governments ◽  
Tax Base ◽  
Percentage Point Increase ◽  
Point Increase

Property taxes are a common revenue source for city governments. There are two property tax bases available—land value (site value, SV), or total property value (capital improved value, CIV). The choice of property tax base has implications for both the distribution and efficiency of the tax. We provide new evidence in favour of SV being both the more progressive and efficient property tax base. First, we use three Victorian datasets at different levels of geographic aggregation to model the SV-CIV ratio as a function of various household income measures. At all three levels, a higher SV-CIV ratio occurs in areas with higher incomes, implying that SV is the more progressive property tax base. Our range of results suggests that a one percent increase in the income of an area is associated with a 0.10 to 0.57 percentage point increase in the SV-CIV ratio. Second, we use historical council data to conduct a difference-in-difference analysis to compare the effect of switching from a CIV to SV tax base on the number of building approvals and value of construction investment. We find that switching from CIV to SV as a property tax base is associated with a 20% increase in the value of new residential construction. This is consistent with the view that changes to land value tax rates are non-neutral with respect to the timing of capital investment on vacant and under-utilised land, which we also demonstrate theoretically.

Optimizing continuous cover and rotation forestry in mixed-species boreal forests

2020 ◽  
Vol 50 (11) ◽  
pp. 1138-1151
Author(s):  
Vesa-Pekka Parkatti ◽  
Olli Tahvonen
Keyword(s):  
Interest Rate ◽  
Tree Species ◽  
Boreal Forests ◽  
Large Diameter ◽  
Land Value ◽  
Mixed Species ◽  
Harvest Timing ◽  
Bare Land ◽  
Level Problem ◽  
Bare Land Value

We study the management of mixed-species boreal forests and tree species composition in a stand-level economic–ecological, size-structured model. The model includes ecological tree species interaction, a detailed harvesting cost module, optimal harvest timing, and optimization between continuous cover and rotation forestry. Optimization is solved by applying a trilevel structure in which the optimal rotation is the highest-level problem, harvest timing is the mid-level problem, and thinning intensity is the lowest-level problem. Given realistic regeneration costs and a 3% interest rate, continuous cover forestry is optimal and may include up to a 40% fraction of broadleaves. A low interest rate and low regeneration cost together with the presence of light-demanding Scots pine (Pinus sylvestris L.) favours rotation forestry. Eurasian aspen (Populus tremula L.) decreases the bare-land value but is optimal to fell without utilization only when it has no commercial value. Overyielding in terms of cubic metre output does not reveal the economically preferable species combination. Managing single-species stands by removing other species that are naturally regenerated decreases the economic outcome by 35%–44%. Felling noncommercial trees without utilization shows that the economically optimal solution avoids high-grading. Maintaining the number of large-diameter trees beyond the level that maximizes profitability implies only minor losses. Omitting thinning decreases the bare-land value up to 73%.

scholarly journals Powierzchniowy a katastralny system opodatkowania nieruchomości w Polsce

Studia BAS ◽  
2021 ◽  
Vol 1 (65) ◽  
pp. 127-146
Author(s):  
Sebastian Gnat
Keyword(s):  
Real Estate ◽  
Econometric Model ◽  
Property Tax ◽  
Ad Valorem Tax ◽  
Tax Rate ◽  
Property Taxation ◽  
Taxation System ◽  
The Impact ◽  
Proper Setting ◽  
Ad Valorem

The article explores the economic aspects of area and value-based taxation of Polish real estate. It begins with the presentation of information on the conditions of property taxation in Poland. Next, a review of the research on the cadastral tax is provided, as well as the assumptions of the econometric model used for mass valuation of the analysed real estate. The main part of the article contains the results of the simulation of replacing the property tax with an ad valorem one. Particular attention is given to the impact of the cadastral tax rate on the revenues of municipalities and changes in the tax burden on individual properties. The main aim of this study was to show the importance of the proper setting of the ad valorem tax rate in the process of reforming the property taxation system.

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