Managed Forest Land in BC
BC Assessment's Managed Forest Land Class refers to privately-owned forest land property for which an acceptable forest management commitment has been made that is approved and complies with the Private Managed Forest Land Act.
Why apply for Managed Forest Class?
The method of calculating managed forest land assessments produce values based on the land's tree growth rate capability. This is a forest use value not influenced by other market forces.
What are the benefits of Managed Forest Class?
- Owners of land in the managed forest class are assured the right to harvest trees (right to log),
- Assessments are reasonably stable though years of no harvesting (as the trees grow),
- Increased assessments will apply only following a year in which logging occurs (tree harvesting).
How Managed Forest Land is Assessed
BC Assessment assesses managed forest lands using a two-step process:
Step One:
BC Assessment determines the value of the land without trees. Other factors are considered. For example, the land's soil quality, location, topography, and accessibility are evaluated.
BC Assessment applies a schedule of regulated values to the bare land. These regulated values are used to help BC Assessment fairly and uniformly determine the assessed value of all managed forest land in B.C.
In step one, trees are not assessed a value.
Step Two:
Only after the trees on managed forest land have been harvested will BC Assessment add the assessed value of the trees cut to the to the bare land value of the land. The value of the trees harvested in any year is added two years later to the property's assessed value.
If the property owner sells the managed forest land before the assessment notice is issued, the owner of the land on December 31 in the year following the harvest will be liable for any outstanding taxes.
BC Assessment employs this two-step process to value managed forest lands. As a result, managed forest land assessments stay fairly stable. Only at the time of harvest, when the property owner receives the benefits of the harvest, will the value of cut timber be assessed and added to the bare land value of the property.
The Forest Land and Cut Timber Values regulation (BC Reg. 90/2000) contains the schedules of value for land and timber, and these schedules may be accessed here.
Declaring the Value of Harvested Trees
Every year owners of managed forest land in B.C. must declare any timber harvesting which occurred on their properties. This declaration can be made verbally in the case of no harvesting. Where harvesting occurred, a written and signed report must be submitted to BC Assessment.
BC Assessment will review the declaration and assess cut timber in accordance with the Assessment Act and the Regulated Schedules of Value.
What are the requirements for Managed Forest Class?
To be classified as managed forest, the land must be at least 25 hectares and be managed as a single unit.
If the land measures 50 hectares or less, at least 70% of the land must be productive during the year ending on October 31.
If the land measures more than 50 hectares, at least 50% of the lnad must be productive during the year ending on October 31.
Land owners must also commit to good forest practices and comply with the legislated requirements of the Private Managed Forest Land Act.
What are the Legislated Requirements and how do I apply?
New legislation was passed in November 2003 and came into force in the spring of 2004. This legislation governs the approval of, and forest practices on, private managed forest land.
The new Private Managed Forest Land Act replaces the Forest Land Reserve Act.
Under the Private Managed Forest Land Act, a council independent of BC Assessment, is responsible for approving and administering the requirements for managed forest classification.
Once BC Assessment is notified by the Private Managed Forest Land Council that a property meets the requirements, BC Assessment will approve managed forest classification of that property for the next assessment year.
Is there a deadline every year for application?
Questions on application dates should be directed to The PMFL Council, however the council must notify BC Assessment of changes to land that qualify for MF classification by September 30 each year for the following assessment year.
More Information
Contact information for the Private Managed Forest Land Council is available on their website www.pmflc.ca or by telephone at (250) 386 5737.
For information on the assessment of managed forest land, please call 1-800-661-2116.
