1. UNDERSTANDING PUV FORESTRY RATES
Mark Megalos
Extension Forestry Specialist
Asst. Extension Professor
11/22/2018

2. NC's Deferred Property Tax Program
THIS TALK:
How Forestry Rates Are Calculated
Land Transfer Specifics
Examples (Case Studies)
What’s Happening ( Education)
Summary
11/22/2018

3. Ownership Tenure Residence-qualifies immediately
Non-residence-4 years immediately preceding the date of application
Exception-land already qualified may continue if new owner makes application within 60 days of acquisition, and
Continues same use &
Accepts deferred tax lien
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4. 11/22/2018

5. 11/22/2018

6. “Sound forest management” clause
Enforced by the county tax office via a forest management plan
Compliance checks
Landowner is responsible to implement their forest management plan
11/22/2018

7. Sound Management-Forestry Plan
Landowner objectives
Maps, plats, aerial photos
Forest/stand inventory/description
Forest management prescriptions
Harvest dates, methods and regeneration strategies
11/22/2018

8. Key points…
A written forest management plan must be submitted to the county tax office to qualify for PUV
A forester yourself or L.O. can write the plan.
Plan must be silviculturally sound and involve commercial production of timber
11/22/2018

9. Forestry Plan
Must have commercial timber production as a major objective
Practices must be implemented on a timely basis
NOTE: Up to 20 acres of woodland may be brought under use-value with an ag or hort application without a plan (Buffers)
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11. PUV Application Procedure
Landowners must apply
“Normal” application window is during the regular listing period (January)
“Within 30 days of receipt of a notice of change in valuation” or;
Within 60 days of acquisition of already qualified property
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12. 11/22/2018

13. FORESTRY PRESENT USE VALUE RATES- MRLA 133A (2012)
MLRA
Class 1 2 3 4 5
133A
Upper CP
$395
$235
$195
$90
$45

14. PUV Summary PUV is an effective tax deferment
Protects WORKING greenspace
Production, sound management and income requirements exist
Landowner must enroll
Deferred taxes become due when land use changes, unless:
new use conforms to program,
new owner agrees to maintain PU, and
assume tax liability (3 preceding years)
11/22/2018

15. THANKS!  Forestry Extension 919-512-1202 Mark.Megalos@ncsu.edu
11/22/2018