Legislation that would extend the expiration date to report timber purchase data to the Department of Revenue was unanimously approved by the Senate last week.
Rep. Jim Walsh, R-Aberdeen, sponsored the measure that would provide for potential changes in tax policy and market conditions for timber purchases. The bill would extend the reporting date from July 1, 2018 to July 1, 2021.
“The history of the 19th District is intricately linked with timber,” said Walsh. “Encouraging private and public sector cooperation for this industry is crucial. We need to support timber. This program has been in place for years and is typically extended in three-year increments. I was glad to shepherd it through the legislature.”
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 provides a way to use that information to ensure fair market valuations without disclosing individual landowner’s other proprietary financial information.
House Bill 1148 now heads to the governor’s desk for signature.
The Legislature is scheduled to adjourn on April 23.