CHAPTER Rev 3400 TAXATION OF WOOD OR TIMBER CUT
PART Rev 3401 DEFINITIONS
Rev
3401.01 “Average stumpage value list”
means the published range of stumpage values for the various species of wood or
timber as derived from surveys conducted twice per year by the department.
Source. #10664,
eff 9-4-14
Rev
3401.02 "Commissioner” means the
commissioner of the
Source. #10664, eff
9-4-14
Rev
3401.03 “Cordwood and fuel wood” means
wood that is cut into specified lengths, or tree length, to be used in
woodstoves and wood furnaces for heating purposes or used in the production of
maple syrup.
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9-4-14
Rev
3401.04 “Department (DRA)” means the
Source. #10664, eff
9-4-14
Rev
3401.05 “Extension” means written
notification to the municipal assessing officials by the owner, no later than
March 31, that the cutting operation will extend beyond April 1.
Rev
3401.06 “High grade spruce/fir” means
tree length spruce or fir that is sold to sawmills as sawlogs
and does not include spruce or fir that is sold as pulpwood to pulpmills or pulp yards.
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9-4-14
Rev
3401.07 “MBF” means the number of board
feet of saw logs expressed in thousands or a fraction thereof.
Source. #10664, eff
9-4-14
Rev
3401.08 “Municipal assessing officials”
means those charged by law with the duty of assessing taxes for a municipality
where the property is located as:
(a) Governing body of a municipality;
(b) Board of assessors or selectmen of a
municipality; or
(c) County commissioners of an unincorporated
place.
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Rev
3401.09 “Municipality” means a city, town, or unincorporated place.
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Rev
3401.10 "Original" means the
first filing by an owner in a tax year of Form PA-7, “Notice of Intent to Cut
Wood or Timber”, containing original signatures of the municipal assessing
officials, in the municipality where the cutting of wood is to take place.
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9-4-14
Rev
3401.11 “Owner” means owner as defined
in RSA 79:1, II, such as:
(a) Any person or persons who own the land,
including joint tenants or joint tenants with rights of survivorship, upon
which wood or timber is cut;
(b) Any person or persons who hold title to the
land as tenants-in-common;
(c) A previous owner who retains timber rights to
land and who registers their claim with the registry of deeds;
(d) Any person who has purchased stumpage and
cutting rights on public lands; or
(e) Any person clearing or maintaining
rights-of-way that sells or agrees to sell the wood or timber.
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Rev
3401.12 “Pallet, tie,” means all sawlogs listed on mill scale slips as either pallet, tie,
or box grades.
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Rev
3401.13 “Public lands” means land owned
by:
(a) The federal government;
(b) The state government;
(c) Cities;
(d) Towns;
(e) School districts; or
(f) Other political subdivisions.
Source. #10664, eff
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Rev
3401.14 “Pulpwood” means smaller, lower
quality timber used with the principal purpose of making wood pulp for paper
production or, for raw material for wood products such as, but not limited to
oriented strand board.
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Rev
3401.15 “Sawlog”
means all grades of sawlogs listed on mill scale
slips other than pallet, tie, or box grades.
Rev
3401.16 “Shade and ornamental trees”
means trees that are within striking distance of a maintained permanent
structure and that are solely maintained by the owner for shade or ornamental
purposes.
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Rev
3401.17 “Stumpage value” means the
market value of uncut standing timber at the time that the timber is cut.
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Rev
3401.18 “Supplemental” means a
subsequent filing by an owner, in a tax year, of Form PA-7, “Notice of Intent
to Cut Wood or Timber”, with the municipal assessing officials to make corrections
or additions to the information provided in the original filed Form PA-7.
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Rev
3401.19 “Tax year” means the time period
beginning April 1 of any year and ending March 31 of the next year, inclusive.
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Rev
3401.20 “Yield tax” means the 10% tax
assessed upon the stumpage value of wood or timber cut during a tax year
pursuant to RSA 79:3. The term includes
“timber tax”.
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Rev
3401.21 “Whole tree chips” means wood that
is processed through a wood chipper or grinder at the site of the logging
operation that is used primarily as fuel for wood burning energy plants or
other similar purposes.
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PART Rev 3402
FORM PA-7, NOTICE OF INTENT TO CUT WOOD OR TIMBER
Rev
3402.01 Owner Requirements for
Completing and Filing Form PA-7, “Notice of Intent to Cut Wood or Timber”.
(a) Prior to commencing a cutting operation, every
owner intending to cut wood or timber, with the exception of owners whose
cutting operation is specifically exempt pursuant to RSA 79:1, II(b), shall
file a completed Form PA-7 with the municipal assessing officials where the
cutting operation will occur.
(b) For a cutting operation that will encompass
more than one municipality, a separate original Form PA-7 shall be filed with
each municipality.
(c) A separate original Form PA-7 shall be filed
for each parcel of land, as identified by the municipal tax maps, that is not
contiguous and in identical common ownership, for where the cutting will occur
within the municipality.
(d) No owner shall commence a cutting operation
prior to the municipal assessing officials’ signing of a completed Form PA-7
and the assignment of an operation number.
(e) An owner who has filed an original Form PA-7,
that has been signed by the municipal assessing officials, shall file a
supplemental Form PA-7 with the municipal assessing officials for the estimated
amount of wood or timber which will exceed the original estimated volume of
wood or timber to be cut if:
(1) The owner
is required to furnish a bond or other security to the municipality pursuant to
RSA 79:3-a or RSA 79:10-a, II; or
(2) The volume
of the cut exceeds the total volume reported in the original Form PA-7 by 25
percent or more.
(f) An owner required to file a supplemental Form
PA-7 pursuant to (e) above shall not continue a cutting operation unless the
municipal assessing officials have signed the supplemental Form PA-7.
(g) An owner of a cutting operation for which a
Form PA-7 has been filed and signed by the municipal assessing officials shall
not continue cutting after March 31 without filing an extension or without
obtaining a newly signed original Form PA-7 for the new tax year.
(h) Within a tax year, if the owner has sent the
municipal assessing officials a written notice of extension dated no later than
March 31, a cutting operation for which the Form PA-7 has been filed and signed
by the municipal assessing officials may continue cutting until June 30 without
obtaining a newly signed original Form PA-7 for the new tax year.
(i) When a property,
for which a Form PA-7 has been filed, is sold during a tax year, the owner
selling the property shall notify the municipal assessing officials within 15
days of the change of ownership, and
the owner buying the property shall complete and file an original Form
PA-7 if the cutting of wood or timber will continue.
(j) Within a tax year, if an owner has filed an
original Form PA-7, and the contract executed pursuant to RSA 227-J:15, III is
terminated, the owner shall complete and file a new Form PA-7 if the owner
intends to continue the cut.
(k) Except for any entity described in RSA 79:1,
II(b)(3), every owner engaged in cutting wood for clearing or maintaining of
rights-of-way, or water storage reservoirs, as described in RSA 79:1, II(b)(4),
shall file one Form PA-7 with the municipal assessing officials in each
municipality where the cutting will occur.
Source. #10664, eff
9-4-14; amd by#12854, eff 8-21-19
Rev
3402.02 Owner Requirements for
Signing Form PA-7, “Notice of Intent to Cut Wood or Timber”.
(a) When a Form PA-7 is filed, for a parcel of
land that is owned in title as joint tenants or joint tenants with rights of
survivorship, the Form PA-7 shall be signed by all owners of record.
(b) When a Form PA-7 is filed for a parcel of
land that is owned in title as tenants-in-common:
(1) The Form
PA-7 shall be signed by all tenants-in-common that hold title or by an individual
with power of attorney to sign on the owner’s behalf; or
(2) The signing
tenants-in-common shall notify any non-signing tenants-in-common by certified
mail at least 30 days prior to cutting that:
a. The Form
PA-7 has been filed; and
b. A bond or
other surety has been filed with the municipal assessing officials to secure
payment of the yield tax.
(c) When a Form PA-7 is filed by a previous owner
who has filed a claim at the registry of deeds to retain the timber rights to
the land, the person who retained the timber rights shall sign the Form PA-7
and be responsible for any bond that might be required pursuant to RSA 79:10-a.
(d) When a Form PA-7 is filed for public lands by
a person who has purchased stumpage and cutting rights, the person who purchased
the stumpage and cutting rights shall sign the Form PA-7 and be responsible for
any bond that might be required pursuant to RSA 79:10-a.
Source. #10664, eff
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Rev
3402.03 Municipal Assessing Officials
Procedure for Approval of Form PA-7, “Notice of Intent to Cut Wood or Timber”.
(a) Pursuant to RSA 79:10, I(b), the municipal
assessing officials shall have 15 days after receipt of a Form PA-7 from the
owner to determine the conditions of approval have been met by certifying that:
(1) All joint
tenants or joint tenants with rights of ownership that hold title to the
property, for which the Form PA-7 has been filed, have signed the Form PA-7 or
have provided a power of attorney for a signature;
(2) All
tenants-in-common that hold title to the property, for which the Form PA-7 has
been filed:
a. Have signed
the Form PA-7;
b. Have filed a
power of attorney by the non-signing tenants-in-common for a signature of the
Form PA-7 with the municipality; or
c. Who are the
signors of the Form PA-7, and have sent to the non-signors, by certified mail
30 days prior to cutting, notification of the filing of the Form PA-7 and that
a bond or other surety has been filed to secure payment of the yield tax;
(3) Any yield
tax bond or other surety required, pursuant to RSA 79:10-a or RSA 79:1, II
(a)(2), has been received by the municipal assessing officials;
(4) The land
being cut is not under current use unproductive assessment; and
(5) The Form
PA-7 is complete and accurate.
(b) If the municipal assessing officials
determine that a Form PA-7 has not met one or more of the conditions of
approval specified Rev 3402.03 (a) above, the municipal assessing officials
shall:
(1) Decline to
sign the Form PA-7;
(2) Notify the
owner in writing within 15 days of the receipt of the Form PA-7 of any
deficiency;
(3) Notify the
logger, forester, or person responsible for the cut in writing within 15 days
of receipt of the Form PA-7 of any deficiency;
(4) Specify the
basis of each deficiency in the written notice; and
(5) Specify in
the notice that no cutting of wood or timber is to occur without a Form PA-7 signed
by the municipal assessing officials.
(c) After the municipal assessing officials have
determined that Form PA-7 has met the requirements in Rev 3402.03(a) above,
they shall indicate their certification by signing the Form PA-7 and assigning
an operation number.
(d) The municipal assessing officials shall,
within 30 days of signing Form PA-7, notify the municipal tax collector that a
Form PA-7 has been filed and that the property is subject to a tax lien
pursuant to RSA 79:6.
Source. #10664, eff
9-4-14; amd by #12854, eff 8-21-19
Rev
3402.04 Municipal Assessing Officials
Procedure for Distribution of Form PA-7, “Notice of Intent to Cut Wood or
Timber”. After signing and assigning
an operation number to a Form PA-7, the municipal assessing officials shall:
(a) Immediately send a copy of the Form PA-7 to
the DRA by:
(1) Mail;
(2) E-mail; or
(3) Fax; and
(b) Provide a copy of the signed Form PA-7 to the
owner, and upon request to:
(1) The logger;
(2) The
forester; or
(3) The person
responsible for the cut.
Source. #10664, eff
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PART Rev 3403
FORM PA-8, REPORT WOOD OR TIMBER CUT
Rev
3403.01 Owner Requirements for Filing
Form PA-8, “Report of Wood or Timber Cut”.
(a) A completed Form PA-8 shall be filed with the
municipal assessing officials and with the DRA by the owner for each original
Form PA-7 that has been filed with the municipality no later than 60 days
following:
(1) The
completion of the operation if the cut ceases prior to March 31st;
(2) The
completion of an extended operation if the cut ceases prior to June 30th;
(3) The sale of
the property for which a Form PA-7 has been filed; or
(4) The
termination of the executed contract between the logger, forester or person responsible
for the cut and the owner.
(b) If the cutting operation was still in progress
until the end of a tax year period, March 31, then a Form PA-8 shall be filed
no later than the following May 15 for all wood and timber cut during the tax
year inclusive of March 31.
(c) If an owner has requested an extension in
writing pursuant to RSA 79:10, II, then a Form PA-8 shall be filed no later
than August 15 for all wood and timber cut during the tax year inclusive of
June 30.
(d) If property where the cutting operation will
occur is located in more than one municipality, a separate Form PA-8 shall be
filed with each municipality.
(e) In the event that no wood or timber was cut,
the owner shall file Form PA-8 with the municipality and the DRA stating that
no wood was cut.
Source. #10664, eff
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Rev
3403.02 Owner Requirements for
Completing Form PA-8, “Report of Wood or Timber Cut”.
(a) The owner shall ensure that Form PA-8 is
complete and correctly identifies:
(1) The total
number of acres on which timber was actually cut;
(2) Whether the
cutting has been completed;
(3) The date
the cutting was completed;
(4) The names
of the sawmill, pulpmill, or facility to which the
wood or timber was sold;
(5) The species
of wood or timber cut; and
(6) The exact
total volume of wood or timber cut as:
a. Sawlogs, including pallet, tie, or box logs, expressed in
per thousand board foot, MBF, or fraction thereof, based upon the International
Ľ inch rule log scale;
b. Pulpwood
expressed in either tons or the number of cords based upon the unit of measure
used at the time of sale;
c. High grade
spruce/fir and whole tree chips expressed by the number of tons;
d. Cordwood and
fuel wood expressed by the number of cords; and
e. The amount
of wood or timber that is exempt or is for personal use.
(b) The
logger, forester or person responsible for the cutting shall verify the volumes
of wood or timber cut by signing the Form PA-8.
(c) For a parcel or parcels of land for which a
Form PA-8 shall be filed, which is owned in title as joint tenants or joint
tenants with rights of survivorship, the Form PA-8 shall be signed by all
owners of record.
(d) For
a parcel or parcels of land for which a Form PA-8 shall be filed, which is
owned in title as tenants-in-common, the Form PA-8 shall:
(1) Be signed
by all tenants-in-common that hold title; or
(2) Be signed
by the tenants-in-common that signed the Form PA-7.
(e) For public lands for which a Form PA-7 has
been filed by a person who has purchased stumpage and cutting rights, the
person who purchased the stumpage and cutting rights and signed the Form PA-7
shall sign the Form PA-8.
Source. #10664, eff
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Rev
3403.03 DRA Distribution Procedure
for Form PA-8, “Report of Wood or Timber Cut”.
(a) Upon receipt of a signed copy of the Form
PA-7 from the municipal assessing officials, the DRA shall, at no expense to
the owner, or the logger, forester, or the person responsible for the cut, send
a Form PA-8 to the person specified on the Form PA-7 as being either:
(1) The owner;
or
(2) The logger,
forester, or person responsible for the cut.
(b) The copy of Form PA-8 shall be sent to the
owner or the logger, forester or person responsible for the cut as specified on
the Form PA-7 by either:
(1) Mail; or
(2) Email.
(c) After the DRA receives the completed Form
PA-8, the DRA shall provide the report of wood or timber cut information to the
department of resources and economic development division of forests and lands.
Source. #10664, eff
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PART Rev 3404
FORM PA-6, TIMBER TAX CERTIFICATE
Rev
3404.01 Posting Required.
(a) Prior to commencing a cutting operation,
except for those which are specifically exempt pursuant to Rev 3407, the owner
or the logger, forester or person responsible for the cut, shall post on the
property where the cut shall take place:
(1) A copy of
the signed original Form PA-7, protected by a waterproof covering; or
(2) A copy of
the un-signed original Form PA-7, protected by a waterproof covering, with the
clearly printed municipal assigned operation number, the date, time, and name
of the municipal assessing official or employee who provided the notification.
(b) Upon receipt from the DRA the owner or the
logger, forester or person responsible for the cut shall post Form PA-6, on the
property where the cut will occur.
(c) The posted copy of Form PA-6 and any Form
PA-7 shall be posted in a conspicuous place within the area of cutting for each
operation.
Source. #10664, eff
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PART Rev 3405
BOND REQUIRED
Rev
3405.01 Bonding or Other Security.
(a) No owner or the logger, forester or person
responsible for the cut shall commence to cut, or continue to cut, until the
owner has posted the bond or other security if required by the municipal
assessing officials when bonding is required pursuant to RSA 79:10-a or RSA
79:1, II(a)(2).
(b) Bonding, pursuant to RSA 79:10-a and RSA 79:1,
II (a)(2), shall list the amount of the bond or other security necessary to
secure payment of the yield tax imposed by RSA 79:3.
(c) If the owner is delinquent on any town yield
tax or on any property tax, including properties on which the intended cut is
not occurring, in the municipality in which a Form PA-7 has been filed, a bond
or other security shall be required for the anticipated yield tax due from the
intended cut.
(d) An owner pursuant to RSA 79:1, II (a)(4) who
intends to cut on public land shall post a bond or other security if that owner
does not own land in the municipality where the cut will occur.
Source. #10664, eff
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PART Rev 3406
ASSESSMENT AND CERTIFICATION OF YIELD TAX
Rev
3406.01 Assessment of Yield Tax.
(a) The yield tax shall be based upon 10% of the
stumpage value of the amount of wood or timber cut.
(b) The yield tax shall be assessed by the
municipal assessing officials within 30 days of receipt of the Form PA-8.
(c) In determining the stumpage value of the wood
or timber cut, the municipal assessing officials shall take into consideration
factors such as, but not limited to:
(1) Location of
the wood or timber;
(2) Quality of
the wood or timber;
(3) The size of
the sale of the wood or timber;
(4) Other
factors that may be necessary to harvest the wood or timber;
(5) Contract
prices paid to the owner for wood or timber; and
(6) The average
stumpage value list as published by the DRA.
(d) If the owner fails to comply with the
requirements of RSA 79:11, pertaining to reporting the amount of wood or timber
cut, the assessing officials shall assess doomage in
accordance with RSA 79:12.
Source.. #10664, eff
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Rev
3406.02 Form PA-9, Certification of
Yield Taxes Assessed.
(a) The municipal assessing officials shall send
to the commissioner their annual certification of yield taxes assessed no later
than June 15 for the operations that were required to file Form PA-8 by May 15.
(b) The municipal assessing officials shall send
to the commissioner their annual certification of yield taxes assessed no later
than September 15th for the operations that were required to file Form PA-8 by
August 15.
(c) The municipal assessing officials shall send
the certification of yield taxes assessed to the DRA by either:
(1) Mail;
(2) Email; or
(3) Fax.
Source. #10664, eff
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PART Rev 3407
EXEMPTIONS FROM YIELD TAX
Rev
3407.01 Exemptions. Owners shall be exempt from filing Form PA-7
and shall be exempt from the yield tax pursuant to the following:
(a) Exemptions provided in RSA 79:1, II(b) shall
only be claimed once per tax year, per municipality by an owner of land which
may:
(1) Cut up to
10,000 board feet of logs that will be used exclusively in the construction,
reconstruction, or alteration of buildings, structures or fences that remain
under the landowner’s ownership;
(2) Cut up to
20 cords of fuel wood for their own consumption for domestic fuel purposes;
(3) Cut for an
unlimited amount of fuel wood for their own purposes in the manufacture of maple
syrup or sugar; and
(4) Cut up to
10,000 board feet of logs and 20 cords of wood, or the equivalent in whole tree
chips, for the purpose converting land, so long as all required permits have
been secured as necessary for the use to which the land will be converted;
(b) Owners exempted under RSA 79-1, II (b)(5) and
Rev 3407.01 (a) (4) shall complete and file Form PA-7 and pay the yield tax on
all wood and timber cut if the volume exceeds the 10,000 board feet of logs and
20 cords or equivalent in whole tree chips;
(c) Cutting for clearing or maintaining
rights-of-way, or water storage reservoirs, as described in RSA 79:1, II
(b)(4), shall be exempt from filing Form PA-7 and the yield tax, provided that
the wood and timber cut is:
(1) Not sold;
or
(2) Bartered;
and
(d) Cutting on public lands, provided that the
wood and timber cut is under the ownership or jurisdiction and for the use of:
(1) The federal
government;
(2) The state
government;
(3) Municipalities;
(4)
(5) Counties.
Source. #10664, eff
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PART Rev 3408 APPEALS
Rev
3408.01 Appealing the Yield Tax
Assessment. Any owner may appeal
their yield tax assessment pursuant to RSA 79:8.
Source. #10664, eff
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APPENDIX
|
Rule |
|
|
|
|
|
Rev 3401.01 |
RSA 79:1, III, (b) |
|
Rev 3401.02 |
RSA 79:30 |
|
Rev 3401.03 |
RSA 79:1, III, (a), RSA 79:10, I, (a), RSA 79:11, I,
RSA 79:30 |
|
Rev 3401.04 |
RSA 79:30 |
|
Rev 3401.05 |
RSA 79:10, II |
|
Rev 3401.06 |
RSA 79:1, III, (a), RSA 79:10, I, (a), RSA 79:11, I,
RSA 79:30 |
|
Rev 3401.07 |
RSA 79:1, III, (a), RSA 79:10, I, (a), RSA 79:11, I,
RSA 79:30 |
|
Rev 3401.08 |
RSA 79:1, I |
|
Rev 3401.09 |
RSA 79:1, I , RSA 79:30 |
|
Rev 3401.10 |
RSA 79:10, I, (a), RSA 79:30 |
|
Rev 3401.11 |
RSA 79:1, II, |
|
Rev 3401.12 |
RSA 79:1, III, (a), RSA 79:10, I, (a), RSA 79:11, I,
RSA 79:30 |
|
Rev 3401.13 |
RSA 79:1, II, (b), (3), (4), RSA 79:30 |
|
Rev 3401.14 |
RSA 79:1, III, (a), RSA 79:10, I, (a), RSA 79:11, I,
RSA 79:30 |
|
Rev 3401.15 |
RSA 79:1, III, (a), RSA 79:10, I, (a), RSA 79:11, I,
RSA 79:30 |
|
Rev 3401.16 |
RSA 79:2 |
|
Rev 3401.17 |
RSA 79:1, III, RSA 79:3, RSA 79:30 |
|
Rev 3401.18 |
RSA 79:10, I, (a) |
|
Rev 3401.19 |
RSA 79:10, RSA 79:30 |
|
Rev 3401.20 |
RSA 79:3 |
|
Rev 3401.21 |
RSA 79:1, III, (a), RSA 79:10, I, (a), RSA 79:11, I,
RSA 79:30 |
|
Rev 3402.01 |
RSA 79:10, RSA 79:30 |
|
Rev 3402.02 |
RSA 79:10, RSA 79:30 |
|
Rev 3402.03 |
RSA 79:10, RSA 79:30 |
|
Rev 3402.04 |
RSA 79:10 (d), RSA 79:30 |
|
Rev 3403.01 |
RSA 79:11 |
|
Rev 3403.02 |
RSA 79:11 |
|
Rev 3403.03 |
RSA 79:10, (d) |
|
Rev 3404.01 |
RSA 79:10, (d) |
|
Rev 3405.01 |
RSA 79:10-a |
|
Rev 3406.01 |
RSA 79:3, RSA 79:1, III, |
|
Rev 3406.02 |
RSA 79:19 |
|
Rev 3407.01 |
RSA 79:1, II, (b) |
|
Rev 3408.01 |
RSA 79:8 |