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Updated Forest Tax Law Analysis Released by Tug Hill
Commission
Published: December 08, 2024
at 07:00 p.m.
By: Press Release
from NYS Tug Hill Commission
Updated Forest Tax Law Analysis Released by Tug Hill
Commission
Watertown, NY - The Tug Hill
Commission recently released an update to the agency’s 2021 The Forest
Tax Exemption and Impact on Municipal Budgets issue paper. The new analysis in the four
counties that include Tug Hill (Jefferson, Lewis, Oneida and Oswego) shows
a slow increase in enrollment, with particular locations seeing
higher-than-average enrollment growth. Given Tug Hill’s rural nature and
small population, shifts in property taxes from large tracts of forestland
enrolled in 480-a to non-enrolled properties in small towns can
significantly raise the property taxes in non-enrolled properties.
Section 480-a of
the Real Property Tax Law allows for a substantial reduction in property
taxes on privately owned properties having 50 acres or more of contiguous
forest. Landowners can apply for the exemption and realize up to an 80%
reduction in their land assessment on the forested portions of the
property, so long as an approved forest management plan and guidelines are
followed. Keeping forested lands “working” through sustainable practices
has positive economic benefits, as well as community, environmental, and
recreational benefits.
Francis Yerdon,
immediate past supervisor of the town of Osceola in Lewis County,
experienced the enrollment of a timber investment management organization
(TIMO) during his term as supervisor. That initial enrollment caused the
town to experience an 8.5 percent shift in property taxes onto other
property owners in the town the first year.
Ian Klingbail, a landowner with lands formerly in the 480-a
program shared that “this is a complicated program, and it needs to be
simplified. There’s a balance that needs to be met between the needs of the
towns to levy taxes, the forest owners’ incentives and the and the remaining
landowners that pick up the difference.”
Local assessor
and past president of the NYS Assessors’ Association, and past chairman and
fellow of the Institute of Assessing Officers, Roger Tibbetts observed that
"480-a is an exemption needing revision to bring it up to date with
the actual markets for real estate and timber values to make communities
with these exemptions whole and not burden the property owners. This paper
reveals the problems with the current law and is an important tool for
officials and legislators to reflect upon hopefully bringing needed changes
in the future."
The Tug Hill
Commission gratefully acknowledges the contributions of the Lewis,
Jefferson, and Oswego County Real Property Tax Service Agencies for their
data contributions.
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The New York
State Tug Hill Commission is a non-regulatory state agency charged with
helping local governments, organizations, and citizens shape the future of
the region, especially its environment and economy. The commission uses a
grassroots approach to build local capacity and provide technical
assistance in land use planning, community development, and natural
resource management.
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