West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-01H - Value Of Timberland And Managed Timberland › Section 110-1H-3 - Definitions

Current through Register Vol. XLI, No. 28, July 12, 2024
As used in this rule and unless the context clearly requires
				  a different meaning, the following terms shall have the meaning ascribed in
				  this section.
3.1. "Capitalization
				rate" means the rate used to convert an estimate of income into an estimate of
				present value. Details of the procedure for determining the capitalization rate
				are found in Section 12 of this rule.
3.2. "Certified managed timberland plan"
				means the managed timberland plan that is certified by the landowner when the
				landowner certifies that the property is maintained as managed
				timberland.
3.3. "Cost" means a
				component of management costs and property taxes.
3.4. "dbh" means the diameter of trees at
				breast height, which is 4.5' above ground level.
3.5. "Division of Forestry" means the West
				Virginia Bureau of Commerce, Division of Forestry.
3.6. "Farm wood lot" means that portion of a
				farm in timber but may not include land used primarily for the growing of
				timber for commercial purposes except that Christmas trees, or nursery stock
				and woodland products, such as nuts or fruits harvested for human consumption,
				shall be considered farm products and not timber products.
3.7. "Harvest income per acre" means the
				expected after tax revenue and accrued interest for each harvesting interval.
				Interest is assumed to accrue at the rate of return from the period of harvest
				to the end of the 80 year rotation cycle.
3.8. "MBF" means thousand board
				feet.
3.9. "Management cost" means
				the cost determined tri-annually by the Tax Commissioner to be the average
				annual cost of maintaining and protecting a producing forest. Maintenance costs
				may include costs of inventory, boundary survey, security, maps, and any other
				items as can be shown to have been necessary. Protection may include costs of
				protection against forest fires; harmful insect and tree diseases; costs of
				repair and replacement resulting from damages reported to appropriate police
				agencies, including all-terrain vehicles (ATV's) and other vehicular damages,
				and costs of replacing and replanting forest production and/or plantations
				destroyed or injured by deer or other wild animals whose populations exceed the
				maximum carrying capacity of the site. Management costs shall be determined as
				an average for the entire State or by regions, by Managed Timberlands
				Productivity Grades or by parcel acreage and shall be deducted from gross
				annual income per acre to obtain net annual income per acre.
3.10. "Managed Timberland" means surface real
				property, except farm woodlots, of not less than ten contiguous acres which is
				devoted primarily to forest use and which, in consideration of their size, has
				sufficient numbers of commercially valuable species of trees to constitute at
				least forty percent normal stocking of forest trees which are well distributed
				over the growing site, and that it is managed pursuant to a plan as defined in
				subsection 3.11 and appendix 2 of this rule.
3.11. "Managed Timberland Plan" means the
				planned timberland management program that conforms to the following standards
				established by the Division of Forestry in the plan:
3.11.1. Includes the owner's multipurpose
				objectives for the property;
3.11.2. Provides for the land:
3.11.2.a. to remain in at least 40% or
				greater forest cover of well distributed commercially important
				trees,
3.11.2.b. to produce
				continuous crops of timber according to the site's productivity, and,
3.11.2.c. to be monitored for and action
				taken against threats from injurious agencies;
3.11.3. Ensures that harvesting will be done
				in a manner that assures regeneration of the landowner's preferred species;
				and
3.11.4. Assures sustainability
				of forest resources and compliance with the Logging Sediment control Act, W.
				Va. Code '19-1B-1 et
				seq.