California Code of Regulations › Title 18 - Public Revenues › Division 1 - State Board of Equalization-Property Tax (California Department of Tax and Fee Administration - Timber Yield Tax, See Chapter 11) › Chapter 11 - California Department of Tax and Fee Administration - Timber Yield Tax › Article 1 - Valuation of Timberland and Timber › Section 1023 - Immediate Harvest Value

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				  Definitions. Immediate harvest value is the amount that each species or
				  subclassification of timber would sell for on the stump at a voluntary sale
				  made in the ordinary course of business for purposes of immediate harvest. Such
				  value shall be expressed to the nearest dollar per standard unit of measure
				  applicable pursuant to Rule No. 1022, except that the immediate harvest value
				  of Christmas trees shall be the sale price of such trees in quantities of 100
				  or more in the market area nearest to the place where the trees are cut and
				  adjusted to reflect the value of the trees immediately prior to severance.
Timber value areas are those areas containing timber having
					 similar growing, harvesting, and marketing conditions.
Harvest value is the immediate harvest value in a timber
					 value area as of the first day of the period specified by the applicable
					 harvest value schedule.
"Timber at similar locations" means timber in an area of
					 comparable elevation and topography, and subject to comparable logging
					 conditions and accessibility to the point of conversion.
(b) Harvest Value Schedules. The timber owner
				  shall determine the taxable value of the timber harvested for each harvest
				  operation by the use of the Board harvest value schedule applicable to the tax
				  reporting period.
The harvest value schedules adopted by the Board provide
					 estimates of harvest values by considering gross proceeds from sales on the
					 stump of similar timber of like quality and character at similar locations, or
					 gross proceeds from sales of logs, or of finished products, adjusted to reflect
					 only the portion of such proceeds attributable to value on the stump
					 immediately prior to harvest, or a combination of both. Allowance is made for
					 differences in age, size, quality, cost of removal, accessibility to point of
					 conversion, market conditions, and other relevant factors.
Each value schedule provides harvest values for a timber
					 value area taking into account species and average tree or log size.
					 Appropriate allowances for costs of removal have been calculated by
					 consideration of the most common logging systems used within the area, the
					 actual methods of harvesting the timber, the volume per acre, the total volume
					 removed per harvest operation, the typical haul range distances to a conversion
					 point and any excessive required costs of removal.
(c) Damaged Timber. The Board, either on its
				  own motion after consultation with the Timber Advisory Committee or in response
				  to an application from a timber owner may specify a modification of immediate
				  harvest value to reflect material changes in timber values that result from
				  fire, blowdown, ice storm, flood, disease, insect damage, or other cause, for
				  any area in which damaged timber is located. Whenever a timber owner uses such
				  modified immediate harvest values for reporting damaged timber, he shall
				  maintain appropriate accounting records as specified by the Board.
1. New
					 section filed 2-1-77; effective thirtieth day thereafter (Register 77, No.
					 6).
2. Amendment of NOTE filed 10-26-77; effective thirtieth day
					 thereafter (Register 77, No. 44).
3. Change without regulatory
					 effect amending subsection (c) filed 6-24-97 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 97, No. 26).
Note: Authority cited: Section
						15606,
						Government Code. Reference: Sections
						434.1,
						38701,
						and
						38204,
						Revenue and Taxation Code.