The 480-a Forest Taxation Program; Utilization, Administration, and Fiscal Impact

NYS Board of Equalization and Assessment

Barrett G. Kreisberg, Chairman Robert B. Dellecese Stanley E. Grayson George J. Liebner

James O’Shea

David Gaskell, Executive Director

State of New York Mario M. Cuomo, Governor

Sheridan Hollow Plaza, 16 Sheridan Avenue, Albany, NY 12210-2714 November 1992

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The 480-a Forest Taxation Program; Utilization, Administration, and Fiscal Impact

Jerome A. McCall Office of Policy analysis and Development

David Gaskell James F. Dunne, Director Executive Director Real Property Tax Research

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Acknowledgements

This report would not have been possible without the assistance provided by several individuals, not only within the Division of Equalization and Assessment, but also from other state agencies, as well as from municipal officials and forest owners. The division’s Valuation Services Bureau and Office of Counsel provided assistance on this report. The Department of Environmental Conservation provided tract enrollment data, and its forestry field staff were most helpful for providing information on stumpage valuations, issuance of violations, and other administrative aspects of the program. County treasurers supplied stumpage tax payment information. Both individual owners and representatives of various forest owners associations provided their perspectives on this program.

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TABLE OF CONTENTS

Executive Summary ................................................................................................................. vii Introduction .............................................................................................................................. 1 The 480-a Program................................................................................................................... 3 Program Participation ............................................................................................................... 8 Property Tax Impact.................................................................................................................. 23 Administration and Enforcement............................................................................................... 26 Forest Land Owners' Perspectives ........................................................................................... 32 The 480-a Program - Public Policy Perspectives...................................................................... 34 Summary and Conclusions ...................................................................................................... 40 APPENDIX: Summary of Important Changes to RPTL §480-a Since 1976 ............................. A.1

List of Tables Table 1. Statewide Participation in 480-a Program ................................................................ 9 Table 2. Forest Acreage Summary by County, Estimated Enrolled Acreage in Forest Taxation Programs, 1992 ............................................................................. 11 Table 3. Number of Parcels Exempt Under RPTL §480-a and Equalized Exempt Value, by County, 1982-90 ......................................................................... 12 Table 4. Participation under RPTL §480-a: Top Five Counties ............................................. 19 Table 5. Towns with Highest Equalized Value Exempted Under 480-a Program, 1990 ............................................................................................... 20 Table 6. Towns with Highest 480-a Exempt Value as a Percent of Total Value of Taxable Property, 1990 .............................................................................. 21 Table 7. Characteristics of Ownership of Parcels Committed to 480-a Program (as a percentage of total enrollment by political unit) ............................................... 22 Table 8. Fiscal Impact of 480-a Program, 1982-1990 ............................................................ 24 Table 9. 480-a Exempt Value and Estimated Tax Shift, by County, 1990 ............................. 25 Table 10. 480-a Exempt Value and Estimated Tax Shift, Top Ten Towns, 1990 ..................... 26

List of Figures Figure 1. Equalized Exempt Value of Parcels with 480-a Exemptions, by County, 1982 ....... 13 Figure 2. Equalized Exempt Value of Parcels with 480-a Exemptions, by County, 1990 ....... 15 Figure 3. 480-a Enrollment, by Town, 1982............................................................................. 17 Figure 4. 480-a Enrollment, by Town, 1990............................................................................. 18

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