This bill aims to amend the Code of West Virginia by establishing a new classification for "managed timberland" that is leased for substantial income. It defines "managed timberland" as surface real property of at least ten contiguous acres primarily devoted to forest use, with specific criteria regarding the stocking of commercially valuable tree species. The bill introduces the term "substantial income," which refers to a percentage of the land's assessed value or a minimum dollar threshold consistent with Category A requirements. Additionally, it clarifies that managed timberland may include properties leased for substantial income, and outlines the conditions under which landowners can qualify for this classification.

Furthermore, the bill stipulates that properties classified as managed timberland leased for substantial income will be taxed at the same rate as Category A managed timberland, regardless of the timber's quality or growth stage. To qualify for this classification, landowners must lease their property under a formal contract, with the lessee primarily using the land for timber-related economic activities. The West Virginia Division of Forestry and the State Tax Division will oversee the classification and compliance processes. The bill also includes provisions for penalties if landowners fail to implement a certified managed timberland plan within a specified timeframe.

Statutes affected:
Introduced Version: 11-1C-2, 11-1C-11a