There are 3,000 Tree Farms in Texas that together encompass more than 4.2 million acres. The forestry bill passed in the last legislature has three major components that provide tax incentives for landowners and others in the forestry profession who plant, manage and harvest timber. Each component of the bill has a specific effective date as well as key provisions that TFA members need to be familiar with. The Texas Forest Service has been actively working with the Appraisal Districts in East Texas to familiarize them with the details of the Restricted-Use provisions of the bill for which they have responsibility. Landowners should begin the filing process now in order to take advantage of the reforestation or the restricted-use provisions of the bill.
Applications are available from the Appraisal District offices.
Key Provisions Provides important property tax incentives for the reforestation of timberland. Provides sales tax incentives on the purchase of equipment, seedlings, and chemicals used in the production of timber. Requires the land to be regenerated for timber production with intent to produce income. Land must have been under timber-use appraisal at the time of harvest. Includes both planted and natural regeneration.