CAPITAL IDEAS -- LIVE!

Hayes D. Brown

starting time: (00:00)

Hayes D. Brown, attorney and forest owner, will moderate this news conference. Hayes' email address is hbrown@hayesbrown.com.

Click Here to View & Hear Prior News Conferences.

FORESTER

SEARCH

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.

Visit www.ForesterSearch.com for a list of Consulting Foresters in your area.

Christina M. Martin

(00:42)
Hear Conference

Comment

Christina Martin is an attorney with Pacific Legal Foundation, 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 funded entirely by private donations.

Suggested reading:

• Supreme Court decision opens federal courts to property rights claims
   
• Knick vs. Scott Township, Pennsylvania
   
• The Supreme Court Decision

Phone: (561) 691-5000
Email: CMartin@pacificlegal.org

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Derrick Coleman

(03:58)
Hear Conference

Comment

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.

Useful information:

General Information Regarding the Current Use Property Tax

Current use values for 2019

Department regulations
 

Phone: (334) 242-1539
Email: derrick.coleman@revenue.alabama.gov

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William M Harris, Jr.

(07:53)
Hear Conference

Comment

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.

Suggested reading:

Alabama Senate Bill 282

Voting Record for Senate Bill 282

About the Alabama Forestry Association

Phone: (334) 481-2130
Email: bharris@alaforestry.org

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Dr. Mark Megalos

(11:39)
Hear Conference

Comment

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.

Learn more:

Is Reforestation a Profitable Investment? An Economic Analysis

BASIC CONCEPTS in FOREST VALUATION and Investment Analysis

Phone: (919) 513-1202
Email: mamegalo@ncsu.edu

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