TIMBER HARVESTING
Of New Hampshire’s approximately 5.75 million acres of land area, 84% (4.8 million acres) is forested. Of this forested acreage, 94% (4.5 million acres) is classified at timberland. Timberland is defined as land that is producing or capable of producing crops of wood.
New Hampshire has laws and regulations designed to encourage timber harvesting and minimize environmental impacts of logging. Municipal officials have the authority and responsibility to work with State agencies to ensure that these laws are consistently enforced.
NH has a real estate tax. By definition timber is considered to be real estate, and is therefore taxable. Timber is only taxed at the time it is cut and at a rate that encourages the growing of timber. In order for municipal assessing officials to be aware of timber harvesting operations, the landowner must file a Notice of Intent to Cut Timber with the town prior to the timber cut. Timber harvested is taxable at 10 % of the stumpage (standing timber) value at the time of cutting. The ONLY exceptions are as follows:
Ø 10 MBF* of sawlogs and 20 cords of fuelwood for personal use by the owner (RSA 79:1 II (b) 1 & 2).
Ø 10 MBF* of sawlogs and 20 cords of fuelwood for land conversion purposes when all permits for the conversion have been received. (RSA 79:1 II (b) 5).
Ø Shade and ornamental trees, usually considered to be trees within striking distance of a building. (RSA 79:2)
Ø Christmas trees, fruit trees, nursery stock and short rotation tree fiber (RSA 79:2)
Ø Any amount of firewood for maple syrup production (RSA 79:1 II (b) 2)
Ø Government and utilities not selling the wood (RSA 79:1 II (b) 3 & 4)
Each owner is allowed all of the above exceptions each tax year for each town (not each lot)
* MBF means thousand board feet
The Notice of Intent to Cut Timber must be completed, with a volume estimate, and signed by the assessing officials before any cutting can start. The original volume estimated cannot be exceeded without filing a Supplemental Notice for additional amounts. Town officials have 30 days to sign the Intent to Cut. The certificate which is sent back to the landowner is to be posted at the site of the logging operation.
Town Officials may withhold signing the Intent to Cut Timber only for the following reasons:
1. The form has been improperly filled out (RSA 79:10)
2. The land is enrolled in the unproductive land current use category that does not allow timber harvesting. (RSA 79-A:2, XIII, Current Use Administrative Rule CUB 302.04(a).
3. A timber tax bond is required but has not been posted (RSA 79:3-a).
4. All owners of record have not signed the Intent to Cut form (RSA 79:1, II). All owners of record are listed on the property record card.
Forms may be obtained either at the Bristol Town Office or through the NH Dept. of Revenue.
A list of licensed foresters is available through the UNH Cooperative Extension’s Forestry Information Center at (800) 444-8978.
FOREST MANAGEMENT AND WETLANDS
Many timber harvesting operations encounter wetlands or surface water during logging and must implement measures to eliminate or reduce impact and obtain appropriate permits. Notification of Forest Management or Timber Harvest Activities Having Minimum Wetlands Impact must be filed with the NH DES Wetlands bureau. http://www.des.state.nh.us/wetlands/pdf/forestrynotification.pdf The booklet “Best Management Practices for Erosion Control on Timber Harvesting Operations” is available for viewing at the following link:
http://www.des.state.nh.us/wetlands/PDF/Timber-Harvesting-bmp_manual.pdf
TIMBER TAX/RATE (RSA 79:1 II (a) & RSA 79:3)
The responsibility for the timber tax depends on the type of ownership. The following ownerships have the responsibility to pay timber tax:
1. Landowners with timber rights on their own land.
2. Persons with deeded timber rights on land they previously owned.
3. Persons purchasing timber on public lands i.e., Federal, state, county, town, etc.
A normal yield tax of 10% on the stumpage value at the time of cutting shall be assessed by the assessing officials within 30 days after receipt of a report of wood or timber cut is filed. The stumpage values are determined by the NH Department of Revenue Administration and can be found at:
http://www.nh.gov/revenue/property_tax/timber/10_01_06_03_31_07avg_stump_val.doc
TIMBER TAX BOND (RSA 79:10-a)
Owners who are not delinquent on property taxes or timber taxes can’t be required to post a timber tax bond. Timber tax bonds are in an amount adequate to secure the expected timber tax, as determined by the local assessing officials.
REPORT OF WOOD CUT (RSA 79:11)
Report of Wood Cut forms are sent to owners who have filed a notice (Intent to Cut) along with a certificate which should be posted at the site of the logging operation (sent by the NH Dept. of Rev). Reports of wood cut must be filed within 60 days of the completion of the cut or by May 15, whichever comes first. Extensions are allowed upon written request to the assessing officials prior to April 1.
PENALTIES AND DOOMAGE (RSA 79:12, RSA 21:J39, RSA 79:28 & 28-a)
Fines for non-compliance range up to $200 and doomage (assessed by the Town) may be assessed for improper reporting. (Doomage is two times what the tax would have been if the Report of Cut had been reasonably filed and truly reported.) The DRA and the Division of Forests and Lands have the authority to issue a cease and desist for any cutting operation not in compliance with RSA 79.
APPEAL PROCESS (RSA 79:8)
If a taxpayer believes they have been overtaxed they must appeal to the Town within 90 days of the tax bill. If the Town denies the appeal then the taxpayer may appeal to the Board of Tax and Land Appeals (BTLA) within 180 days of the tax bill for an appeal board hearing.
BASAL AREA LAW (RSA 227-J:9)
The basal area law requires that forested buffers be left along town and state roads, streams and bodies of water, following a timber harvest. These buffer zones can prevent erosion, provide wildlife habitat, protect stream temperature and aquatic life, and preserve the aesthetics of the landscape.
Basal area means the cross-sectional area of a tree measured four and a half feet from the ground. It is expressed in square feet per acre. Simply stated, basal area is a measure of tree density on each acre of land. The higher the basal area, the denser the forest.
The law says no more than 50% of the basal area may be cut or otherwise felled each year, leaving a well distributed stand of healthy, growing trees. A landowner may request a variance from the Director of the Division of Forests and Lands to cut more than 50% of the basal area along roads, water bodies or streams.
GETTING HELP
The New Hampshire Division of Forests and Lands has 10 forest rangers available to help town officials and property owners comply and enforce timber harvesting laws. These rangers have the authority to enforce laws relating to basal area and slash (RSA 227-J), wetlands (RSA 482-A), alteration of terrain (RSA 485-A:17), and timber tax (RSA 79). When potential violations of state harvesting laws are encountered, the state forest ranger for this area should be notified immediately by calling the Forest Protection Bureau in Concord at (603) 271-2217. Timber tax issues or questions should be directed to the Department of Revenue Administration at (603) 271-2687.
ENFORCING REGULATIONS:
The following table lists important regulations and the official bodies responsible for their enforcement.
REGULATION ENFORCEMENT AUTHORITY
Timber Tax Enforcement NH Dept. of Revenue Administration
NH Division of Forests and Land
Bristol Tax Assessor and/or Selectmen
Wetland Notification NH Wetlands Bureau (DES)
NH Division of Forests and Land
Dredge-and-Fill Permits NH Wetlands Bureau (DES)
Town Planning Board
Town Selectmen
NH Division of Forests and Land
Alteration-of-Terrain Permits Water Supply and Pollution Control Div (DES)
NH Division of Forests and Land
Basal Area and Slash Law NH Division of Forests and Land
Municipality, after notifying NH Div of Forests
Timber Trespass NH Division of Forests and Land
Deceptive Forestry Practices NH Division of Forests and Land
HOW TO CONTACT STATE AGENCIES AND ORGANIZATIONS:
NH Dept. of Resources and Economic Development
Division of Forests and Land Forest Protection Bureau
PO Box 1856
Concord, NH 03302-1856
(603) 271-2217
http://www.dred.state.nh.us/divisions/forestandlands
NH Dept. of Revenue Administration
Property Appraisal Division
PO Box 457
Concord, NH 03302-0457
(603) 271-2687
http://www.revenue.nh.gov/property_tax/timber/index.htm
NH Dept. of Environmental Services
NH Wetlands Bureau
PO Box 95
Concord, NH 03302-0095
(603) 271-2147
http://www.des.nh.gov/water_intro.htm
NH Timberland Owners Association
54 Portsmouth Street
Concord, NH 03301
(603) 224-9699
UNH Cooperative Extension Grafton Cty Office
2785 Dartmouth College Highway, Box 8
North Haverhill, NH 03774
(603) 787-6944
UNH Cooperative Extension Forestry Information Center
(800) 444-8978
http://extension.unh.edu
Fact sheets from the NH Dept. of Environmental services can be found at:
http://des.state.nh.us/factsheets/wetlands/wb-2.htm