BC Assessment assesses managed forest land using a two-step process:
Step one: bare land
BC Assessment determines the value of the land without trees. The factors considered in the valuation process include the location, parcel size, soil quality, topography, and accessibility of the property.
BC Assessment applies a schedule of regulated rates to the bare land. These regulated values are used to help BC Assessment fairly and uniformly determine the assessed value of all managed forest land in British Columbia.
In Step One, trees are not assigned a value.
Step two: value of harvested timber
Only after the trees on managed forest land have been harvested will BC Assessment add the assessed value of the cut timber to the bare land value of the land. The value of the timber harvested in any year is determined using the scale of the timber under the Forest Act, and added two years later to the property’s assessed value. For example, the value of the timber harvested in 2014 is added to the bare land value for the 2016 assessment of the property.
If the property owner sells the managed forest land before the assessment notice is issued, the owner of the land on December 31 in the year following the harvest may be liable for any outstanding taxes.
The result of using this two-step process is that managed forest land assessments remain fairly stable. Only at the time of harvest, when the property owner receives the benefits of the harvest, will the value of cut timber be assessed and added to the bare land value of the property.
The Managed Forest Land and Cut Timber Values regulation (BC Reg. 90/2000) contains the schedules of value for land and timber.
Declaring the amount of harvested timber
Section 24(10) of the Assessment Act states that owners of managed forest land in British Columbia are required to submit an annual declaration (Timber Harvesting Return) to report any timber harvesting which occurred on their properties.
BC Assessment will review the declaration and value the cut timber in accordance with the Managed Forest Land and Cut Timber Values regulation (BC Reg 90/2000).
For more information on how to obtain the managed forest land class for a property, contact the Managed Forest Coucil at (250) 386-5737, or visit their website at www.mfcouncil.ca.
For information about Managed Forest Land classification and assessment, or for details on your Managed Forest property assessment contact:
BC Assessment - Managed Forest
400 - 3450 Uptown Blvd
Victoria, BC V8Z 0B9
Toll Free: 1-866-valueBC (825-8322) Ext 00225
Disclaimer: Where information presented is different from legislation, legislation shall prevail.