La. Admin. Code tit. 61 § V-2713
Current through Register Vol. 50, No. 6, June 20, 2024
Section V-2713 - Assessment of TimberlandA. Use Value Table 2717.B presents the assessed value of all bona fide timberland.B. Classification of Timberland. Timberland shall be classified into four categories as follows. 1. Class 1 timberland is timberland capable of producing more than 120 cubic feet of timber per acre per annum.2. Class 2 timberland is timberland capable of producing more than 85 but less than 120 cubic feet of timber per acre per annum.3. Class 3 timberland is timberland capable of producing less than 85 cubic feet of timber per acre per annum.4. Class 4 timberland is timberland capable of producing less than 85 cubic feet of timber per acre per annum and which is subject to periodic overflow from natural or artificial water courses, and which is otherwise considered to be swampland.C. Range of Productivity of Timberland. The timberland productivity of each of the four classifications of timberland is hereby established to be as follows: 1. class 1 = 86.6 cu. ft. of growth/acre/year;2. class 2 = 66.8 cu. ft. of growth/acre/year;3. class 3 = 39.4 cu. ft. of growth/acre/year;4. class 4 = 38.8 cu. ft. of growth/acre/year.D. Production Costs of Timberland. The average timberland production costs are hereby established to be $10.80/acre/year.E. Gross Returns of Timberland. The gross value per cubic foot of timber production is hereby established to be $0.59 per cubic foot.F. Capitalization Rate for Timberland. The capitalization rate for determining use value of timberlands is hereby established to be as follows. | Timberland Class 1, 2 and 3 | Timberland Class 4 |
Risk Rate | 2.30 % | 5.30 % |
Illiquidity Rate | - 0.09 % | 0.85 % |
Safe Rate | 4.16% | 5.16% |
Other Factors | 3.63 % | 4.69 % |
Capitalization Rate | 10.00 % | 16.00% |
La. Admin. Code tit. 61, § V-2713
Promulgated by the Department of Revenue and Taxation, Tax Commission, LR 8:102 (February 1982), amended LR 9:69 (February 1983), LR 12:36 (January 1986), LR 13:248 (April 1987), LR 14:872 (December 1988), LR 17:1213 (December 1991), LR 22:117 (February 1996), amended by the Department of Revenue, Tax Commission, LR 26:511 (March 2000), LR 30:492 (March 2004), amended by the Division of Administration, Tax Commission, LR 38:811 (March 2012), Amended by the Office of the Governor, Division of Administration, Tax Commission, LR 42751 (5/1/2016), Amended LR 46566 (4/1/2020).AUTHORITY NOTE: Promulgated in accordance with R.S. 47:2301 through R.S. 47:2308.