34 TAC §9.4011
The Comptroller of Public Accounts adopts an amendment to §9.4011,
concerning appraisal of timberlands, without changes to the proposed text
as published in the February 20, 2004, issue of the
Texas Register
(29 TexReg 1614). There were no changes to the manual
adopted by reference.
The amendment provides the methods and procedures for qualifying and appraising
timberland. In addition, the manual addresses the application process, discusses
the methods for determining if a change of use has occurred on timberland
and the calculation of the rollback tax. It establishes the procedures and
methods for the productivity appraisal of timberland and restricted use timberland.
During the proposed period, comments were received and considered by the
comptroller.
Don Staples, Consultant, commented on the reasoning for the use of the
international 1/4 inch log scale to make conversion to Doyle log scale to
tons when the "international 1/4" is seldom used in Texas. The Comptroller
uses U.S. Forest Service growth rate information; this is the unit of measure
used by the Forest Service. Therefore, the comptroller declines to make any
changes in response to this comment
Ray Hartenstein commented on the definitions of "pine", "hardwood" and
"forest products". The terms are commonly used and understood by timber landowners,
appraisal districts, and other organizations. No other comments were received
questioning the meaning of the terms. Therefore, the comptroller declines
to make any changes in response to this comment.
Mr. Hartenstein commented on "an acre of pine" in the last paragraph of
Step 4 and the chart that follows. The chart lists growth rates for an "acre
of pine" which includes pine and hardwood sawtimber and pine and hardwood
pulpwood, so that the chart is consistent with the proceeding text.
Another comment from Mr. Hartenstein was that "the cost of producing timber
is no different than any other crop removed from the land, the cost of nutrient
replacement (fertilization) must eventually be faced and should be included
here." The cost of nutrient replacement (fertilization) is addressed in Appendix
C and is referenced in paragraph 3 of Step 7.
The amendment is adopted under Tax Code, §23.73(b), which
requires the comptroller to set forth the method of qualifying and appraising
for productivity appraisal land used to produce timber.
The amendment implements Tax Code, Chapter 23, Subchapter E and Subchapter
H.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on April 13, 2004.
TRD-200402470
Martin Cherry
Chief Deputy General Counsel
Comptroller of Public Accounts
Effective date: May 3, 2004
Proposal publication date: February 20, 2004
For further information, please call: (512) 475-0387