Why not buy property in tree growth (Woodland: home, buyer)

[retiredtinbender]

Originally Posted by forest beekeeper

How I read it, means that: restricted in use must provide a public benefit [public recreation, scenic resources, game management or wildlife habitat].

They determine the 'fair market value' and then apply reductions.

Normally 20% reduction.

If you added a restriction on the deed to protect it permanently, then an additional 30% reduction.

If you added a restriction on the deed to permanently make it 'wild', then an additional 20% reduction.

If you made it open to public access, than another 25% reduction.



Run a bush-hog through to make trails for the general public, setup a few benches, a sign at the road to tell the public that it is open to the public. Then go through it once a week to pickup the trash.

Yup, that's the waay the state reads it, too. If you put it "forever wild" you can be 70% exempt and "Public" is 95% exempt. The public can use it with certain restrictions but you do not have to put up signs, benches or conveniences. You just can't stop them from using it according to the law. You will have certain things for the deed though.

Keep talking to the assessor. He'll give you the right details. He's the one that knows the law or at least the phone numbers to call for the right answers.

http://www.state.me.us/revenue/forms...ubs/bull21.pdf

[Submariner]

Originally Posted by DPO1131959

Forest, can I hire you to be my park ranger?

Sure

[daydreamin71]

Originally Posted by DPO1131959

Forest, can I hire you to be my park ranger?

Lol, I was thinking the same thing as I was reading this thread.

This program seems like it could be a very attractive option, but there is so much to research and consider that it's a little overwhelming. Good thing we have time to figure it out! I'm grateful for all of this discussion

[Submariner]

Earlier I mentioned the Maine Forestry Service 'Occasional email letter' for woodlot owners. A new issue of it came out today.

Anyone can sign up for it at: woodswisewire Info Page

They are hosting a public forum at the SeaDog in Bangor 3Nov, Great Northern Paper Company's CEO [Peter Hanson] will be talking about future plans for wood in Maine.



They just announced a new internet social network site specifically for private woodlot owners and foresters.

CornellForestConnect

It is part of the Cornell University Cooperative Extension ForestConnect program.

Publications – Free downloadable and on-line reading of resources by state specialists, colleagues, and partners

Webinars – Monthly presentations by experts on topics ranging from timber to ponds to invasive species to silvopasture

Workshops and Conferences (see the events calendar)

Demonstration sites

Trained Master Forest Owner (MFO) volunteers who will visit a private woodland and provide non-technical assistance

CornellWoodlot on Twitter for terse announcements of recent happenings

Applied research on university and private cooperator lands

Arnot Conservation Education Program – for educational programming at the Cornell University Arnot Teaching and Research Forest

On-line classes provide an opportunity for learning about topics in natural resources management. Two courses are currently available.

If anyone is interested in treegrowth in Maine, or owning a woodlot, or discussing things with Maine Foresters. Then you may wish to subscribe to this email list.

Or attend the Seadog event.

Or check out the private woodlot owners' social network site.



[btw I am not selling anything. As far as I know they are not selling anything. If I have violated the T.O.S. I apologize in advance]

[packalphadog]

Forgive my ignorance, but if I were to buy, say, 50 acres from a seller that had the property under Tree Growth exemption, will I face a penalty for not extending the exemption?

I don't wish to have anyone tell me what I can and can't do with my land, and would rather pay the full taxable amount for that right. But I also don't feel that it's fair that because the guy I bought the land from benefitted on his taxes for having the land under Tree Growth, that I should be penalized for his benefitting by paying a penalty....

Is this how it works? If that's the case, I guess I will have to purchase only land that is not under Tree Growth at the time I purchase it in order to avoid having to pay a penalty?

[retiredtinbender]

Originally Posted by packalphadog

Forgive my ignorance, but if I were to buy, say, 50 acres from a seller that had the property under Tree Growth exemption, will I face a penalty for not extending the exemption?

I don't wish to have anyone tell me what I can and can't do with my land, and would rather pay the full taxable amount for that right. But I also don't feel that it's fair that because the guy I bought the land from benefitted on his taxes for having the land under Tree Growth, that I should be penalized for his benefitting by paying a penalty....

Is this how it works? If that's the case, I guess I will have to purchase only land that is not under Tree Growth at the time I purchase it in order to avoid having to pay a penalty?

If you decide to take it out of tree growth after you buy the property then after 1 year you will pay the penalty unless someone is asleep at the switch in the assessors office. The previous owner wanted the exemption. I you do not it's your penalty for taking it out. The option is yours not his.

[Northern Maine Land Man]

packalphadog asks:

"Forgive my ignorance, but if I were to buy, say, 50 acres from a seller that had the property under Tree Growth exemption, will I face a penalty for not extending the exemption?"

There is no such thing as a dumb question, just one needing an answer. There is a fee for withdrawing land from the tree growth program. This fee normally applies either at the end of the existing plan or one year after you purchase the property. (Continue reading.)

"I don't wish to have anyone tell me what I can and can't do with my land, and would rather pay the full taxable amount for that right. But I also don't feel that it's fair that because the guy I bought the land from benefitted on his taxes for having the land under Tree Growth, that I should be penalized for his benefitting by paying a penalty."

The plan follows the land, not the prior owner. The owner made an agreement with the state to eventually harvest wood for commercial purposes. If you never intend to do that you could transfer your land to the open space program, the farm program or just pay the fee for taking it out of the tree growth program. Nobody will tell you what to harvest or when to harvest it. THose are your choices. CAUTION: The state has a few "Gotcha" rules buried in the fine print. You 'could' have several years to modify your tree growth plan. If the land is in tree growth you must notify the taxing authority (town or state) within one year whether you intend to leave the property in the program or take it out of the program. BUT if the existing plan expires say, 17 days after you buy the property, some towns rejoice and send YOU a really big tax bill. When buying land in tree growth, demand a copy of the plan BEFORE you buy the land.

"Is this how it works? If that's the case, I guess I will have to purchase only land that is not under Tree Growth at the time I purchase it in order to avoid having to pay a penalty?"

None of my land is in the tree growth program. That said, if you buy a 50 acre lot you can leave 49 acres in the plan and take out one acre. The fee for taking out one acre cannot exceed 30% of the present value of that acre. For example, if you bought a 50 acre lot for $25,000, that's $500 per acre. The fee for taking out one acre would be 30% of $500 or $150. Heck, a soil test often costs twice that much.

[kellysmith]

Originally Posted by Northern Maine Land Man

For example, if you bought a 50 acre lot for $25,000, that's $500 per acre. The fee for taking out one acre would be 30% of $500 or $150. Heck, a soil test often costs twice that much.

It's not quite that simple. If you bought a 50 acre parcel for $25,000 and you decided to take the one acre that had road frontage and the tax assessor valued as a house lot, say with a valuation of $10,000 you would pay three grand penalty. The penalty isn't based on a per acre cost of what you paid for the land, it's based on what the assessor says the land you are removing from tree growth is valued at. There are horror stories of land down near the coast that folks put in tree growth to beat the tax man, only to find they can't afford to remove it now with the penalty from tree growth. That woodlot with an ocean view is worth a lot more if you decide you'd rather not grow trees, but instead use it for another purpose.

[Northern Maine Land Man]

Very true kellysmith. The guy with a 40 acre lot on a nice salmon lake might find that the assessor values the acre on the water at $180,000. 30% of that is $54,000. Ouch! Towns are very happy when that happens. I was referring to an ordinary 50 acre lot in the back country.

[barbbragg]

We have 50 acres in TG. We plan to take 2 acres out eventually to build a new home. In the meantime, we have had low taxes, been able to get our year's firewood and been able to hunt and fish on the property. What more can you ask for? I would encourage people to use the TG incentive.