Laws, Regulations & Annotations
Property Taxes Law Guide – Revision 2015
Revenue and Taxation Code
Part 2. Assessment
Chapter 3. Assessment Generally
Article 1.7. Valuation of Timberland and Timber*
434.5. Value of timberland. (a) On March 1, 1984, for the Redwood Region and Pine-Mixed Conifer Region, and on January 1, 1985, for the Whitewood Subzone of the Redwood Region, and January 1 of each year thereafter, the value per acre of timberland zoned under the provisions of Section 51110 or Section 51113 of the Government Code shall be determined from the following schedule:
Site V (and inoperable)
Pine-Mixed Conifer Region
Site V (and inoperable)
Whitewood Subzone of the Redwood Region
Site V (and inoperable)
For purposes of this section:
(1) "Redwood Region" means all those timberlands located in Del Norte, Humboldt, Sonoma, Marin, Monterey, Santa Cruz, and San Mateo Counties and that portion of Mendocino County which lies west and south of the main Eel River.
(2) "Whitewood Subzone of the Redwood Region" means that timberland located within the Redwood Region within which the assessor has determined that redwood did not exist as a species in the composition of the original timber stand, or which has not been replanted with redwood for commercial purposes.
(3) "Pine-Mixed Conifer Region" means all other timberlands outside the Redwood Region.
When the assessor, pursuant to Section 434, designates a timberland parcel or portion thereof as inoperable, that timberland parcel or portion thereof shall be valued as if it is Site V.
(b) In 1985, the board shall determine the current value of timberland by the following process:
(1) For each fiscal year between July 1, 1979, and June 30, 1984, divide the total value of all timber harvested within the state, less miscellaneous forest products not reported by board foot volume, by the total volume of timber harvested, as reported pursuant to Section 38402. Average the five fiscal year values to obtain the five-year periodic immediate harvest value.
(2) For each fiscal year between July 1, 1978, and June 30, 1983, follow the same procedure as described in paragraph (1).
(3) Divide the value obtained by paragraph (1) by the value obtained by paragraph (2) to obtain the percentage change, rounded to the nearest one-tenth of 1 percent.
(4) Increase or decrease to the nearest dollar the full market values contained in subdivision (a) by one-half of the percentage change determined by paragraph (3).
(c) Beginning January 1, 1986, and each year thereafter, the board shall determine the current value of timberland using the same procedure as described in subdivision (b), except that this adjustment shall be made to the prior year's adjusted values, and the five-year periodic immediate harvest values shall be successively one year more recent.
(d) The board shall certify the values determined pursuant to this section to the county assessors by November 30 of each year.
(e) The Legislature finds and declares that the foregoing values are consistent with the taxation of timberland used primarily for growing timber and that these values are consistent with the intent of subdivision (j) of Section 3 of Article XIII of the Constitution.
History.—Stats. 1977, Ch. 940, in effect January 1, 1978, substituted "subdivision (j) of Section 3 " for "Section 3j" in the third paragraph of subdivision (a). Stats. 1978, Ch. 1109, in effect September 26, 1978, substituted "for the 1977–78 fiscal year" for "and March 1 of each year thereafter, up to and including March 1, 1979," in the first paragraph of subdivision (a), and deleted the former third paragraph thereof; substituted subdivision (b) for former subdivision (b); added subdivisions (c), (d), and (e); relettered former subdivisions (c), (d), (e), (f), and (g) as (f), (g), (h), (i), and (j), respectively; and added subdivisions (k) and (l). Stats. 1979, Ch. 242, in effect July 10, 1979, substituted "and March 1 of each year thereafter, up to and including March 1, 1979" for "for the 1977–78 fiscal year", and added "per acre" after "valued" in subdivision (a); deleted former subdivisions (b), (c) and (d); and relettered subdivisions (e), (f), (g), (h), (i), (j), (k), and (l) as (b), (c), (d), (e), (f), (g), (h), and (i), respectively. Stats. 1982, Ch. 1489, in effect January 1, 1983, in addition to making a number of grammatical changes throughout this section, substituted "production" for "preserve" before each "zone", deleted "the provisions of" after "pursuant to" in the third sentence of subdivision (b), substituted "production" for "preserve" after "timberland" in the second sentence of subdivision (d)(2), and deleted "of this subdivision" after "paragraph (2)" in the second paragraph of subdivision (f). Stats. 1983, Ch. 1198, in effect January 1, 1984, substituted the first sentence of subdivision (a) and increased schedule values for "On March 1, 1977, and March 1 of each year thereafter, up to including March 1, 1979, timberland shall be valued per acre according to the following schedule:" and previous schedule values; substituted subdivisions (b), (c), and (d) for former subdivisions (b), (c), (d), (e), (f), (g), and (h); and relettered former subdivision (i) as subdivision (e). Stats. 1984, Ch. 634, in effect January 1, 1985, added "for the Redwood Region and Pine-mixed Conifer Region, and on January 1, 1985, for the Whitewood subzone of the Redwood Region," after "March 1, 1984," in the first sentence of subdivision (a); substituted "new schedule of values" for former values for Redwood Region and for Pine-mixed Conifer Region; added "For purposes of this section:" and subsections (1), (2) and (3) thereafter. Stats. 1997, Ch. 940 (SB 1105), in effect January 1, 1998, substituted "January 1" for "March 1" before "of each year" in the first sentence of subdivision (a), substituted "this" for "such" after "except that" in the first sentence of subdivision (c), and substituted "November 30" for "January 10" in the first sentence of subdivision (d).
Note.—Secs. 2 and 3 of Stats. 1984, Ch. 634, provided no payment by state to local governments because of this act.
Modified productivity approach.—As used in subdivision (f)(3), "immediate harvest value" refers to both young growth and old growth, and "20 quarters" means 20 quarters. Thus, property tax rule 1025 was valid insofar as certain timberland values for the pine-mixed conifer region were based upon an immediate harvest value of both young growth and old growth, but it was invalid to the extent that such values were based upon such an immediate harvest value averaged for the previous 10 rather than 20 quarters. Soper-Wheeler Co. v. State Board of Equalization, 124 Cal.App.3d 913.
Unit valuation.—The phrase, "the same legal ownership" as used in property tax rule 41A(1) may be broadly interpreted so that various timber tracts recorded to different owners may be assessed as a unit once a parol partnership of the different record owners is factually established. Cochran v. Board of Supervisors, 85 Cal.App.3d 75.
* Article 1.7 was added by Stats. 1976, Ch. 176, p. 320, in effect May 24, 1976. Secs. 20 and 21 thereof provided no payment by state to local governments because of this act. Sec. 22 thereof provided that the property tax assessment provisions shall be applicable to assessments for the 1977–78 fiscal year and thereafter.