Goal: Apply Knowledge Globally Landowners and state property tax programs: Program requirements and forestland characteristics are key to enrollment
All 50 States offer programs that lower property taxes for enrolled forestlands, but participation in these programs vary. SRS research found that program eligibility rules, restrictions on enrolled land, and penalties for withdrawal affect enrollment. Larger land parcels are more likely to be enrolled. Surprisingly, landowner goals and concerns were not usually linked to enrollment in state property tax programs.
Property taxes are among the most common concerns of private forest landowners. State programs that reduce property taxes for enrolled forestlands exist in all fifty states. Specific rules, restrictions, benefits, and penalties vary by state. Researchers at the University of Minnesota and USDA Forest Service used responses from the National Woodland Owner Survey and an analysis of all 50 State programs to determine how landowner, parcel, and program characteristics are linked to the likelihood of landowners enrolling their land.
Surprisingly, most factors are not strongly linked to enrollment, including landowner concern about taxes and income goals. Larger land parcels are more likely to be enrolled. Population density is related to enrollment, but not in a one-to-one way. Parcels that had the most and the least population pressure were less likely to enroll, and those in between were more likely to enroll, suggesting conflicting incentives.
Higher average tax reduction by state was not linked to higher enrollment, either. Program characteristics that require more paperwork or impose more restrictions on enrolled lands were linked to lower likelihood of enrollment. High penalties for withdrawal were linked to higher likelihood of enrollment. This suggests that the programs are effective at keeping lands in the program or attracting landowners who want to keep their forest as forest.
- Principal Investigator
- Gregory Frey, Research Forester
- 4804 - Forest Economics and Policy
- Strategic Program Areas
- Resource Management and Use
- Inventory and Monitoring
- Factors associated with family forest landowner enrollment in state preferential forest property tax programs in the United States
- A comparison of participants and non-participants of state forest property tax programs in the United States
- Private forest owners and property tax incentive programs in the United States: A national review and analysis of ecosystem services promoted, landowner participation, forestland area enrolled, and magnitude of tax benefits provided
- CompassLive Articles
- Forest Landowners and State Property Tax Programs
- Promoting Ecosystem Services with State Property Tax Programs
- Research Partner
- Stephanie Snyder - NRS
- External Partners
- Charles Blinn - University of Minnesota
- Michael Kilgore - University of Minnesota
- Justin Meier - University of Minnesota