From BC Assessment
Warning to potential purchasers of private forest land
Potential purchasers should be aware that private forest land may be assessed at a higher value to account for the economic benefit of timber that was previously harvested on that land.
Class 7 Private Managed Forest Land is valued on a two-part basis, as detailed in s. 24 of the Assessment Act:
- the bare land value, which incorporates such factors as soil quality, accessibility, 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 2006 will show up as added value on the assessment notice for the 2008 assessment roll. For property taxes payable in the summer of 2008, part of the value may come from the harvesting of trees two years previously.
Prospective purchasers of property classed as forest land are advised to enquire about previous harvesting on the property, and possible property tax implications of such harvesting.
Exit fees may also be charged if the property is removed from Managed Forest Class within the time frame of 15 years. The exit fee is intended to encourage long-term participation in the managed forest program.
The land and harvested timber are valued on the basis of legislated rates prescribed by the Assessment Authority. 2008 assessment rates are found in BC Regulation 90/2000.
Exit fee information may be obtained by visiting the Private Managed Forest Land Council website at pmflc.ca, or by contacting Stuart McPherson at 250-386-5737.
For more information, contact BC Assessment: Janice Thomas, AACI, P. App., Senior Appraiser, 1537 Hillside Avenue, Victoria, BC V8T 4Y2, tel. 250-595-6211, local 262.