Factors influencing forest landowner enrollment in preferential property tax programs

Abstract

One of the most common approaches to conserving forestland in the US are state-run programs offering reduced property taxes on forestland. Although some form of preferential forest property tax program exists in all 50 states of the US, few studies have examined factors associated with landowners’ enrollment in such programs. As interest increases in incentivizing forestland owners to address various environmental or ecological goals, such as enhancing carbon storage or ecosystem services via private forest management, the need for improved knowledge about factors that influence landowners to participate in such programs grows. We examined factors associated with NIPF owner enrollment in preferential property tax programs in Oregon (US). Oregon currently has two primary preferential forest property tax programs. The Forestland Program is the default program for most forestland owners, and the Small Tract Forestland Option (STF), which is a voluntary program wherein landowners pay reduced annual property taxes and an additional timber harvest severance tax. We used a survey to gather information from 1190 Oregon Small Woodlands Association (OSWA) members owning between 10 and 5000 acres of forestland in western Oregon. Respondents were asked about their socio-demographic characteristics and forest management, as well as their enrollment status in Oregon's preferential property tax programs. Our econometric analysis of survey data indicate that preferential property tax programs enable long-term forest ownership, extended rotation ages, and investment in stewardship activities, suggesting that these programs are likely an effective tool for encouraging environmental or ecological goals among NIPF owners in Oregon.