From BC Assessment
Warning re managed forest land
Purchasers of private managed forest land should be aware that the land may be assessed at a higher value to account for the economic benefit of timber that was previously harvested on that land. Exit fees may also be charged if the property is removed from Private Managed Forest Class.
The property class that deals with private managed forest land is Class 7 Private Managed Forest Land. Land in this class is valued on a two-part basis, as detailed in section 24 of the Assessment Act:
- the bare land value, which incorporates such factors as soil quality, accessibility, topography, parcel size and location; and
- the added value of the timber on the land, which becomes assessable when it is harvested. For example, timber harvested in the calendar year 2009 will show up as added value on the assessment notice of a forest land property for the 2011 assessment roll. For property taxes payable in the summer of 2011, part of the value may come from the harvesting of trees two years previously.
The land and harvested timber are valued on the basis of legislated rates prescribed by BC Assessment through regulation each year.
Prospective purchasers of property classed as forest land are advised to enquire about previous harvesting on the property, and its possible property tax implications.
Exit fees may be incurred for those properties removed from Managed Forest Class. The exit fee is intended to encourage long-term participation in the Managed Forest Program and is applied to property that is removed from Managed Forest Class prior to a 15-year timeframe. Exit fees are administered by the Private Managed Forest Land Council (PMFLC).
Information on exit fees is available on the website of the PMFLC at pmflc.ca or by phone at 250-386-5737.
For more information on managed forest land assessment or details on your managed forest property assessment, contact: Assessment and Valuation Services, BC Assessment, Head Office, 400 – 3450 Uptown Blvd., Victoria BC V8Z 0B9, Tel. 250-595-6211 ext. 256, toll-free 1-800-661-2116, email firstname.lastname@example.org.