On September 4th, Environmental Defense and the Southern Environmental Law Center (SELC) applauded members of the N.C. House for passage of a measure that removes negative property tax consequences for landowners who choose to place farm and forest lands under conservation easements. The provision, known as the Hartsell Amendment after its sponsor Senator Fletcher Hartsell, is included in SB 1161: An Act to Amend the Present Use Value Statutes and now returns to the Senate for a final vote.
Under current law, landowners who are receiving a property tax break for farm and forest lands lose that favorable tax treatment once they place a conservation easement on the property. Three years of back taxes are imposed on these conservation landowners, and in the future the lands are routinely assessed at higher property tax rates than lands used for crop and timber production.
"This measure levels the playing field for landowners who choose to protect woodlands for wildlife habitat and other conservation purposes," said Dan Whittle, senior attorney for the North Carolina office of Environmental Defense. "In some North Carolina counties, landowners choosing to conserve woodlands receive tax bills up to 10 times higher than landowners who designate forests for timber production. This serves as a real disincentive to protect valuable forests and other lands."
"Loss of forests spells trouble for North Carolina's economy and environment," said Whittle. "This win-win provision is an important first step in updating state policies that protect all the benefits of forest land, not just the economic values."
According to the U.S. Forest Service, the area of natural forests in North Carolina has declined for decades, and the remaining forests increasingly come under intensive management for timber production. Harvests of softwood species already exceed new growth, and by 2005 the same will be true of hardwoods across the state.
"North Carolina is facing a crisis in forestry management that is fueled in part by obsolete tax incentives," said Lark Hayes, SELC senior attorney. "Most importantly, there is no coordinated public policy that provides fair criteria for protecting forests both for timber value and for conservation purposes such as clean water, wildlife habitat, aesthetic beauty and green space. North Carolina has a long way to go."
"The study commission that is established by the bill provides a foundation for the development of more forward-looking forestry management policies that can ensure North Carolina continues to enjoy all the benefits of its world class natural forests."
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