480-a Forest Tax Law Program , Anyone doing this ?

[rob-c]

Window shopping for land and have seen a few  enrolled in this. I did look it up,  but wanted some first hand thoughts good  or bad being in the program . 

[SilentStalker]

I am a member in a camp which participates. The break in taxes for our piece is substantial. Additionally, it keeps the powers that be motivated to manage the timber over a period of time rather than the...cut once every 20 years method. As a person who hunts the land, i believe it has helped with holding deer and other wildlife on the property as most sound habitat management does. We are fortunate to have timber managers/loggers in the camp so they already have a grasp on that side. Knowing people who will do the work the right way is key because being in the program then serves a two fold purpose.  

I would look at it as a long term investment if you/your family plan to keep the property. There are several stipulations though. One being that if you sell or want to get out, I believe the 10 year "contract" stands.      

[rob-c]

9 minutes ago, SilentStalker said:

I am a member in a camp which participates. The break in taxes for our piece is substantial. Additionally, it keeps the powers that be motivated to manage the timber over a period of time rather than the...cut once every 20 years method. As a person who hunts the land, i believe it has helped with holding deer and other wildlife on the property as most sound habitat management does. We are fortunate to have timber managers/loggers in the camp so they already have a grasp on that side. Knowing people who will do the work the right way is key because being in the program then serves a two fold purpose.  

I would look at it as a long term investment if you/your family plan to keep the property. There are several stipulations though. One being that if you sell or want to get out, I believe the 10 year "contract" stands.      

Yes I read about the 10 year contract,  we would be  keeping it for some time. Your holding the deer / wildlife comment , can you expand on that ? 

Edited December 29, 2020 by rob-c

[G-Man]

Saves 80%  on land accessment for taxes,  i big help to me, Bonus everything ive been doing to improve.my property is what i need to do do to fit intonthis programs guidelines, and i get helpand get paid to do many of the projects that i was planning in doing anyway thru grants that i apply for. . Best thing going imo to bad it is onky for larger acrerages ,imo every serious sportsman landowner should be allowed in this. Great for wildlife and improving habitat.. as for the 10 year rolling commitment  i was doing it anyway with no $ benifit not i safe thousands on my taxes and do the same thing.

[rob-c]

1 minute ago, G-Man said:

Saves 80%  on land accessment for taxes,  i big help to me, Bonus everything ive been doing to improve.my property is what i need to do do to fit intonthis programs guidelines, and i get helpand get paid to do many of the projects that i was planning in doing anyway thru grants that i apply for. . Best thing going imo to bad it is onky for larger acrerages ,imo every serious sportsman landowner should be allowed in this. Great for wildlife and improving habitat.. as for the 10 year rolling commitment  i was doing it anyway with no $ benifit not i safe thousands on my taxes and do the same thing.

Interesting, so one can apply and get grants . What sort of projects did  you get grants for ? 

[SilentStalker]

We are in year 5 or 6 at this point in the western ADK's, historically one of the lower deer density areas in the state. The logging has led to more wildlife sightings in general. We are running approximately 20-30 cameras at anytime during the year. For example, we have had moose sightings, hare sightings (never previously), turkeys (rare), more than usual grouse around, while also having more deer who wont go to yard at the first snowfall. We documented more bucks on our cameras this year than any of the last 16 I've been up there. Obviously many factors must be looked at when deciding why, but i find it difficult to not see the relation between the two.

    

[G-Man]

If your truly interested try contacting your local forest owners association.  They usually have meetings and classes you can take that will fill you in on programs available as well as information and training sessions for yourself to do.  Not only game but mycology,butterfly, bee, and non game species enhancements 

[G-Man]

1 minute ago, rob-c said:

Interesting, so one can apply and get grants . What sort of projects did  you get grants for ? 

Yes thru your county ,   Removing invasive species,  clearcutting a sanctuary area, ,removing species that are undeseriable. Have applyed for a wetland enhancement project building duck/waterfowl ponds in a swampy area for migratiin and nesting ..( this has been a hard one i started it 3x already and playing around with farmbill under obama killed it several times).  Now who knows may have to start over again. 

[BizCT]

Looks interesting. Too bad the minimum is 50 acres. My Dad only has 30.

[Nytracker]

I know wish I could  ..  I only have 30 acres. 

[land 1]

ive never looked into i may but ive been told not "facts" by people in it that say if u want to clear cut an area for food plot that is timber thats a no go, or just cut some fire wood thats live trees thats a no and when u do logging a % of $ goes to town or county or somthing maybe some guys on here can verify or advise if this is false 

[rob-c]

It looks like you have to pay 6% when logged, if I read it right . Depending on how much you would save on taxes every year it may be worth it .

[escpen]

Here are some thoughts I shared with a neighbor of mine after looking into this program pretty extensively with 3 different foresters:

 

I wanted to share some info on the 480a tax savings program for woodlot management that I learned after consulting with several foresters around this time last year.  

One of the stipulations for the plan is that the property needs to be contiguous with at least 50 acres of wooded ground to be considered. Open areas and fields are excluded from the 50 acre minimum. I’ve also learned that the tax savings is likely around 40% or 50% excluding the cost for a forester to come in and develop an initial management plan and submit the 480a paperwork. In addition to that, the forester has to update the plan every 5 years, which is another added fee. There is also the cost associated with performing the work associated with the plan. Finally, there is actually a lien placed on your property that is in place for 10 years after you decide you want to exit the program. During those 10 years, you still have to abide by the Forestry plan as well. Another option is to buy out of the 480a plan but the forester explained that this is VERY cost prohibitive, typically many times any tax savings you may have accrued over time.

 

To me, it seemed like there were a number of negatives and not as many positives on the tally sheet.

 

YMMV

 

 

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