UNDERSTANDING PUV FORESTRY RATES Mark Megalos Extension Forestry Specialist Asst. Extension Professor 11/22/2018

NC's Deferred Property Tax Program THIS TALK: How Forestry Rates Are Calculated Land Transfer Specifics Examples (Case Studies) What’s Happening ( Education) Summary 11/22/2018

Ownership Tenure 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 11/22/2018

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“Sound forest management” clause Enforced by the county tax office via a forest management plan Compliance checks Landowner is responsible to implement their forest management plan 11/22/2018

Sound Management-Forestry Plan Landowner objectives Maps, plats, aerial photos Forest/stand inventory/description Forest management prescriptions Harvest dates, methods and regeneration strategies 11/22/2018

Key points… A written forest management plan must be submitted to the county tax office to qualify for PUV A forester yourself or L.O. can write the plan. Plan must be silviculturally sound and involve commercial production of timber 11/22/2018

Forestry Plan Must have commercial timber production as a major objective Practices must be implemented on a timely basis NOTE: Up to 20 acres of woodland may be brought under use-value with an ag or hort application without a plan (Buffers) 11/22/2018

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PUV Application Procedure 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 11/22/2018

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FORESTRY PRESENT USE VALUE RATES- MRLA 133A (2012) MLRA Class 1 2 3 4 5 133A Upper CP $395 $235 $195 $90 $45

PUV Summary 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: new use conforms to program, new owner agrees to maintain PU, and assume tax liability (3 preceding years) 11/22/2018

THANKS!  Forestry Extension 919-512-1202 Mark.Megalos@ncsu.edu 11/22/2018