Legislation extending the expiration date to report timber purchase data to the Department of Revenue was signed into law on Wednesday.
Rep. Jim Walsh, R-Aberdeen, sponsored the measure that extends the reporting date for timber purchases. This allows for potential changes in tax policy and market conditions by changing the reporting deadline from July 1, 2018 to July 1, 2021.
“The timber industry continues to play a vital role in our region’s economy,” said Walsh. “This program is a great combination of private sector property interests and public sector agencies. The best sort of cooperation. I’m glad to play a small role in keeping it in place.”
Because changes often occur in tax policy and market conditions, a three year extension is better than a permanent change. This extension helps ensure stumpage tax rates are based on actual market value and not on other sources of information. In addition, it protects landowners from unnecessary costs and reduces the risk of misreporting information.
Under the program, private forest landowners share certain information about the value of their land and assets with the Department of Revenue. The program also provides a way to use that information, ensuring fair market valuations, without disclosing individual landowner’s proprietary financial information.
The Legislature is scheduled to adjourn on April 23.