State Income Tax Implications for Nonindustrial Private Forestry in the South

Abstract

Abstract State income tax provisions in the South vary greatly, but all have a significant effect on timber investment, particularly for private nonindustrial forestry (PNIF). To illustrate the impact of state taxes we computed the 1981 tax liability for hypothetical PNIF owners with both medium and high incomes and, further, for managed and unmanaged forest land. With forest management, the state portion of total tax ranged from 0-31 percent (medium income) and 0-19 (high income); with no forest management, the state portion ranged from 0-25 (medium) and 0-17 (high).