This bill aims to amend the Code of West Virginia by establishing a new classification for managed timberland that is leased for carbon credit income. It introduces the definition of "managed timberland" to include properties of at least 1,000 acres leased specifically for carbon credit income, and defines "carbon credit income" as a percentage of the land's assessed value of at least $10,000 per annum. The bill also outlines that properties classified under this new category will be taxed at the same rate as Category A managed timberland, regardless of the timber's quality or growth stage, and sets forth eligibility requirements for landowners to qualify for this classification.

Additionally, the bill specifies that the West Virginia Division of Forestry and the State Tax Division will oversee the classification and compliance of these properties. It includes provisions for penalties if a landowner fails to implement a certified managed timberland plan within 24 months, requiring them to pay a fine equal to the property taxes saved due to the managed timberland classification. The bill also exempts properties generating less than $10,000 per annum and under 100 acres from reclassification. Overall, the legislation seeks to encourage sustainable timberland leasing and management while ensuring appropriate tax treatment for income-generating timberland.

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