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- Info
The effects of California's forest taxation reform act on private forestry investment
| Author: |
Romm, J.; Washburn, C. |
| Date: |
1988 |
| Periodical: |
In: Forest Taxation: Adapting in an Era of Change; 1988 May 20-22; Atlanta, GA. Madison, WI: Forest Products Research Society. |
| Abstract: |
California's Forest Taxation Reform Act (FTRA) of 1976 replaced an ad valorem with a yield tax on timber, removing tax pressures for financially premature or excessive harvest. The FTRA also created the Timberland Preserve Zone CM), where land was to be taxed solely for its value in timber production. The timber yield tax, the reduced land tax, and conversion pressure on TPZ owners were expected to increase forestry investment. The yield tax and the TPZ altered the distribution of returns to forestry investment among ownership classes and among forest regions. The redistributional impacts may have stimulated forestry investment in some regions and among some ownership classes, while discouraging it in others. Benefits were largely concentrated among industrial and quasi-industrial NIPF owners in the mixed-conifer regions of the state. Their costs were largely concentrated in regions that are prone to rapid forestland conversion, or that have high ratios of harvest to stock volumes, and among NIPF owners who have tended to plant trees but not to harvest timber. |
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