HB 5340
Establishing a new classification for managed timberland leased for substantial income
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Sign in to take action- Introduced
- Passed House of Delegates
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill creates a new classification for managed timberland in West Virginia that is leased for substantial income derived from carbon credits. Specifically, it defines ‘carbon credit income’ as a percentage of the land’s assessed value of at least $10,000 per year. Landowners leasing their timberland for this purpose will be assessed and taxed under the same rate as Category A managed timberland, provided they meet specific contractual and operational requirements outlined in the legislation.
Key provisions
- Defines ‘carbon credit income’ as a minimum annual income of $10,000 from a timberland lease.
- Establishes a new classification for managed timberland leased for carbon credit income.
- Properties in this classification will be taxed at the same rate as Category A managed timberland.
- Landowners leasing for carbon credits must have a formal contract and primarily use the land for timber-related economic activities.
- The West Virginia Division of Forestry and State Tax Division will oversee the classification and compliance of this new category.
- Properties under 100 acres and generating less than $10,000 in carbon credit income are exempt from reclassification.
- A penalty will be assessed if a landowner fails to implement a certified managed timberland plan within 24 months of certification.
Who is affected
- Timberland landowners
- Lessees of timberland
- West Virginia Division of Forestry
- State Tax Division
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