One or two presenters from state property tax systems present their knowledge of the valuation methodologies used in their state(s). Comparisons are made with other states with the purpose of identifying methodologies, which are commonly used, and how those property taxation systems effect the management and utilization of forestland in the US. Traditional valuation methodologies are the Ad valorem, productivity, site value and flat property tax systems. In some states there are more than one of these property tax systems available for forestland owners to choose from. There are advantages and disadvantages to each. Property tax systems should be fair, neutral, administratively simple, and stable. They should efficiently provide services to taxpayers without creating undue hurdles for forest management and production.

The emphasis will be on valuation tools used to allow landowners flexibility in the management systems they employ on their property. Property tax systems should be designed to provide incentives for landowners to maximize forestland productivity over multiple rotations. The property tax systems should be easily understood by those effected by them and should provide a stable source of revenue for the support of schools, roads, local government, and in some instances hospitals

The only good tax is the one that someone else pays. The reason is that everyone wants the services provided by the taxes being paid but the tax takes capital from the property owner and prevents reinvestment and could produce more from the investment involved. Many forest economists have argued the sides of forest property taxation. This presentation will focus on the practical aspect of setting up and maintaining a forest tax system that provides services to taxpayers served by the revenue that is collected.