In some of my recent articles, I have described and complained about an important industry in America that has been in decline for almost 10 years due to many unforeseen circumstances. At the risk of boring many, and alienating others, I decided I should complete the spectrum on the important but troubled timber business. Excluding the two main factors in this particular business, investment and risk, a major element of concern is unfair taxation. This is especially true for the 560,000 tree farmers in Georgia.

Taxation has of course raised its ugly head throughout the history of America in many businesses. In 1992, an amendment was put on the ballot in Georgia which was known as Amendment Three and was heavily endorsed by our state’s major timber companies. For years, this corporate structure, which owns vast amounts of acreage in Georgia had complained about the value assessment on their land and having to pay their property taxes. Since property valuation is an inexact science, it was deemed feasible that bare land should be valued separately from the standing timber growing on the land.

Amendment Three outlined a system of taxing timber value at the time of harvest. For almost 20 years, this method of taxation has been in place with varying degrees of honesty and success. With logging permits being required, county tax offices are immediately put on notice when a landowner decides to sell his or her timber. The “Amendment Three” law requires the timber company or logging contractor harvesting the timber to report directly to the county tax office the amount of proceeds from the timber sale. The county millage rate is applied to the total dollar amount and the timberland owner is promptly required to pay this tax bill.

This tax bill is in addition to his or her annual tax bill and their state and federal income tax bill. This in my opinion becomes a debatable issue after 17 years of haphazard enforcement. In my opinion, it brings up another point. Timber is an agricultural product which is marketed. Are other landowners and farmers who market their products such as cattle, poultry, hay and row crops required to report to the county tax office the proceeds from their recent sale and then immediately pay an additional tax bill? Several questions should be answered: How much does this timber tax amount to? What is it used for? As a comparison to other states, how does it rate?

As to the first question, a landowner in Carroll County who sells his or her timber can expect to pay about $28 per thousand on their timber sale. For example, if $15,000 worth of timber is sold, a landowner’s timber tax bill will be $420. Is this timber tax earmarked for any purpose to benefit tree farmers? For example, does it go to the Georgia Forestry Commission for fire control or seedling production? According to the Carroll County Tax Assessor’s Office, this timber tax money goes into the general fund for additional county spending.

As to other states, how does this timber tax compare? In the adjoining state of Alabama, their timber tax is referred to as a severance tax. If a landowner in Alabama sells $15,000 worth of timber, his or her tax bill will be $72 as compared to the Carroll County, Ga., landowner having to pay $420. In Alabama, the $72 timber or severance tax goes to the Alabama Forestry Commission for their operation in fire control, seedling production and landowner consultation.

What started out as a tax plan to appease big businesses who did not want to pay their fair share, as has many times happened, hurt the little man. As a closing comment from a tree farmer and forester, if the general public one day begins to wonder why landowners do not want to take the risk or make the investment to tie up their land for years to grow timber and then have to deal with a controlled market and then have to pay tax after tax after tax on said timber, they will realize the continuing dilemma of the timber business.

(Taylor is a Carroll County resident and local forester.)