West Virginia Code of State Rules
Agency 110 - Tax
Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT
Series 110-01H - Value Of Timberland And Managed Timberland
Section 110-1H-11 - Procedure for Determining Value Per Acre of Managed Timberland

Universal Citation: 110 WV Code of State Rules 110-1H-11

Current through Register Vol. XLI, No. 38, September 20, 2024

The following is a step-by-step procedure for determining the appraised value per acre of managed timberland.

11.1. The Tax Commissioner shall enter the surface ownership maps (typically 1 inch = 400 feet or 1 inch = 800 feet) into a Geographic Information System (GIS). The GIS shall be used to register the surface ownership parcels to the same geographic coordinate system and scale as that of the soil productivity data (SSURGO). This process allows the calculation of the area of each soil productivity grade in each parcel.

11.1.1. In those counties where the GIS is not yet available, the soil productivity maps addressed in paragraphs 3.16.1.a through 3.16.1.e of this rule shall be utilized. These maps are the soil grades identified on USGS 7.5 minute topographical quadrangle sheets (1 inch = 200 feet). The West Virginia county surface ownership maps (commonly 1 inch = 400 feet of 1 inch = 800 feet) were reduced to 1 inch = 200 feet. The reduced scale surface maps were overlayed on the productivity grade maps and the grade boundaries were transferred, allowing the determination of the area at each grade for each ownership parcel.

11.2. Average stumpage price (5 year weighted moving average) is determined by stumpage price reports from the Division of Forestry and other available sources.

11.3. Total harvest income per acre over a rotation cycle of thirty-five (35) years, fifty-five (55) years and eighty (80) years for Grade 1 and 2 soils, and forty-five (45) years and eighty (80) years for Grade 3 soils shall be determined by the accumulated periodic harvest income plus accrued interest on the net income less state and federal tax payments.

11.4. End of rotation (80 year) total management costs per acre shall be determined by the accumulated after tax management cost and accrued interest on those costs.

11.5. Appraised value per acre for managed timberland shall be determined by first deducting the end of rotation total management costs; second, calculating the present worth of that difference; and third, adjusting that value by the annual ad valorem property tax rate (either Class II or a blended Class III/IV).

11.6. The GIS (when available) shall be used to calculate the appraised value of managed timberland property on an annual basis. Until the GIS is available, soil grade calculations will be made from data described in paragraphs 3.16.1.a through 3.16.1.e and subdivision 11.1.1 of this rule. The appraised value of each managed timberland property shall be calculated using the formula found in Appendix 6 of this rule.

11.6.1. Those acreages involved in a managed timberland application where the use of the property is not for managed timberland purposes (e.g., homesite, pasture, tillable, recreation, stripmine, etc.) shall not be classified as managed timberland and shall be appraised by the county assessor.

Disclaimer: These regulations may not be the most recent version. West Virginia may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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