SB157 HFA Sobonya 3-7 #1
Delegate Sobonya moves to amend section four of the bill on page four, line thirteen, by inserting the following;
“(c) The Legislature directs the State Tax Department to promulgate, effective on and after the first day of July, 2016, the amended legislative rule filed in the State Register on July 29, 2015, authorized under the authority of sections five and eleven-b, article one-c, chapter eleven of this code, as modified to conform to the recommendations of the Legislative Rule-Making Committee on November 18, 2015, but later withdrawn by the State Tax Department by notice filed in the State Register, relating to the State Tax Department (valuation of timberland and managed timberland, 110 CSR 1H), with the following amendments:”
On page four, in subsection 3.16 of the rule, by striking the second sentence, and adding at the end of the final sentence after the word “Index”, before the period, the words “(IMI) as shown on Appendix 4 of this rule.”;
On page six, in section ten of the rule, at the end of the first sentence, following the word “properties” and before the period, by inserting the following words and punctuation marks “, using, for all measures required by this rule to compute such appraised value per acre of managed timberland, real values and not nominal values.”;
On page six, in section ten of the rule, by striking the remaining language of the section, and by inserting “Except as required by the provisions of subsection 2.2 of this rule, in no case shall the appraised value per acre for any grade of managed timberland in any county be less than eighty percent of the value per acre of the comparable grade of managed timberland in the immediately preceding tax year in that same county. The appraised value is the net present worth of all revenues and costs associated with growing timber on the land in perpetuity. Net income is the difference between projected revenues, for example, harvest revenues in years 35, 55 and 80, and projected costs, including, for example, management costs.”;
On page six, in section eleven of the rule, in subsection 11.1, in the first sentence between the words “ownership” and “maps” by adding the words “data provided by the county assessors, or, in the absence of such data, shall digitize from”, and at the end of the subsection, inserting “During any period for which the application of this process to a given parcel is temporarily delayed, the Tax Commissioner, in cooperation with the Division of Forestry, shall employ such available data and methods as will reasonably approximate the assignment of a soil productivity grade to that parcel.”;
On page six, in section eleven of the rule, in subsection 11.3, following the word “be” by striking the words “determined by the accumulated periodic harvest income plus accrued interest on the net income”, inserting the words “compounded at the end of the rotation (i.e. harvest income value at year 80)”, inserting between the words “less” and “state” the word “applicable” and inserting between the word “payments” and the period, the words “if any”;
On page seven, in section eleven of the rule, in subsection 11.4, following the word “by” striking the word “the”, inserting the words “compounding the annual management costs at the end of the rotation (i.e. management cost value in year 80)”, striking the word “accumulated”, inserting the words “using the”, by inserting a comma before the word “management” and by inserting the letter “s” at the end of the word “cost.”;
On page seven, in section eleven of the rule, in subsection 11.5, between the words “the” and “end” inserting the word “cumulative”, following the word “costs” inserting the words “from the cumulative end of rotation total harvest income per acre as defined in subsection 3.7 of this rule”, and between the word “difference” and the semi-colon, inserting a comma and the words “, assuming an infinite periodic income from the managed timberland”;
On page thirteen, in Appendix 4 of the rule, by striking the words “Site Index (75 or more)” and replacing them with the letters, symbol and digits “IMI ≥ 45”, by striking the words “Site Index (65-74)” and replacing them with the letters, word, symbols and digits “IMI ≥ 30 and ≤ 44.99” and by striking the words “Site Index (less than 65)” and by replacing them with the letters, symbol and digits “IMI ≤ 29.99”;
On page fourteen, in Appendix 5 of the rule, after the words “For Class II Parcels:”, on line 1, following the word “Acre”, by deleting all the language preceding the words “For Class III & IV Parcels”, and by inserting the words, symbols and digits: “= ((Future Value of Harvest Revenues – Future Value of Management Costs)/((1 + Real Discount Rate)n) -1)) less discounted property tax Class II rate.
Where:
n = 80 years
Future Value of Harvest Revenues – value of harvest revenues in year 80 using compounding formula below
Vn = Vo(1 + i) n
Where: Vo = harvest revenue in the initial year (i.e. 35, 45, 55 or 80)
i = capitalization rate
n = rotation length
Vn = future value of harvest revenues
Future Value of Management Costs – value of management costs in year 80 using the formula for calculating the future value of a terminating annual series as given below:
Vn
Where: a = annual management costs
i = capitalization rate
n = rotation length
Vn = future value of management costs”;
And
On page fourteen, in Appendix 5 of the rule, on the final line, by striking the Roman numeral “II” and replacing it with the Roman numeral “III” and by striking the Roman numeral “III” and replacing it with the Roman numeral “IV”.
Adopted
Rejected
 |