CAPITAL IDEAS -- LIVE!
July 2019 News Conference for Forest Owners
Produced by the Alabama Forest Owners' Association, Inc.
This Conference was recorded at 10:00 AM Central Time on
Wednesday, July 10, 2019 with a live audience. If you would like to be a
member of the audience on the next program, call (205) 624-2225 to register.
Hayes D. Brown
starting time: (00:00)
Hayes D. Brown, attorney and forest owner, will moderate this news
conference. Hayes' email address is
Click Here to View & Hear Prior News Conferences.
Today's issue of Capital Ideas - Live!
is brought to you by
Forester Search, a web resource developed
by the Alabama Forest Owners' Association with the support of the
Bradley/Murphy Forestry & Natural Resources Extension Trust.
a list of Consulting Foresters in your area.
Christina M. Martin
How a Supreme Court win for Rose Knick is a win for all landowners
Christina Martin is an attorney with
Legal Foundation, is a nonprofit legal organization that defends Americans’
liberties when threatened by government overreach and abuse. They argue
cases regarding property rights, economic liberty, equality before the law, free speech and association, and separation of powers. Christina and her
colleagues at Pacific Legal Foundation argued in the Supreme Court for
landowner Rose Knick, whose property was taken because of a suspected
graveyard on it. A federal court denied Rose the right to fight the case,
citing Williamson County Regional Planning Commission v. Hamilton Bank, a
1985 decision by the U.S. Supreme Court that said property owners must take
their federal property rights claims to state courts before bothering with
federal courts. Last month, the Supreme Court agreed with Rose:
Property rights are among American's most important constitutional rights
and overturned the 1985 decision, marking a victory for landowners across
the country. This case, and all of Pacific Legal cases are pro-bono,
free-of-charge representation for those who cannot afford private counsel or
who do not have an economic stake in the case that would justify private
representation and is
by private donations.
Phone: (561) 691-5000
Current Use Property Tax assessment will save landowners money
The Current Use Property Tax law can provide
many landowners a significant tax savings on their property taxes.
Derrick Coleman, the Director of the
Property Tax Division for the
Alabama Department of Revenue, is responsible for overseeing the tax
benefits. Many people ask the question, “Why
is the current use value for agricultural land separate from market value?”
The general opinion was that a farmer should not be penalized by paying
higher taxes on farm land that has a market value based on the speculative
use of the property for uses other than farm land. Often times, the market
value of farm land in or close to a city, or other developing area, will
have a higher market value because the highest and best use of the farm land
may be for a subdivision, shopping center, industrial site or other use,
which brings a higher value than farm land. Current use valuation allows the
valuation of the farm land to be based on the actual use of the property,
rather than what the use might be if the property were sold or developed.
The Code of Alabama 1975 defines market value and current use value as:
Market value – The estimated price at which the property would bring
at a fair voluntary sale.
Current use value – The value of eligible taxable property based on
the use being made of that property on October 1 of any taxable year;
provided, that no consideration shall be taken of the prospective value such
property might have if it were put to some other possible use.
In 1978, the Alabama Legislature passed a law enabling the valuation of farm
and timberland at its current use value instead of market value. We've asked
Derrick to explain this beneficial tax for landowners, and to tell us about
the roll back (charge back) if the land is sold making it no longer eligible
for the current use benefit.
General Information Regarding the Current Use Property Tax
Current use values for 2019
Phone: (334) 242-1539
William M Harris, Jr.
No More Fire District Fees, thanks to
the AFA and others
As the director of Political Affairs and State House lobbyist for the
Alabama Forestry Association,
Bill Harris, works hard for Alabama landowners. In May, he
and others in the organization were instrumental in getting Alabama Senate
Bill 282 passed. The bill exempts timber lands from local fire district
service charges and fees, but allows landowners who desire to enter into a
voluntary agreement with a local fire district. Also, forestland fees in the
Concord and Birmingport fire districts were negotiated down from previous
highs of as much as $8 per acre, but not fully exempted. The Alabama
Forestry Association was formed in 1949 to represent the interest of the
state’s sawmill companies and soon expanded to include forestry members from
the stump to the mill. The AFA has an active political action
committee that usually supports the interest of forest landowners. If you
want to be involved or contribute, contact Bill.
Alabama Senate Bill 282
Voting Record for Senate
Alabama Forestry Association
Phone: (334) 481-2130
Dr. Mark Megalos
An economic analysis on the profitability of reforestation investments.
Dr. Mark Megalos
is an Extension Professor of
Forestry Resources at
N.C. State University and
is co-author of a paper, "Is Reforestation a Profitable Investment?
An Economic Analysis." Most landowners have a varied investment
portfolio such as an IRA, and stocks and bonds, but may not think of
timberland as a long term investment. Using current stumpage prices and
costs of preparing and replanting, this paper discusses the cost of
reforestation and the potential return on investment. We hope to learn how
to use this information to increase the profits from our lands.
Reforestation a Profitable Investment? An Economic Analysis
BASIC CONCEPTS in FOREST VALUATION and Investment Analysis
Phone: (919) 513-1202
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