Journal of Forest Economics > Vol 39 > Issue

The Impact of Property Taxation on Urban and Timber Investments

Sun Joseph Chang, School of Renewable Natural Resources, Louisiana State University Agricultural Center, USA, Andres Susaeta, Department of Forest Engineering, Resources and Management, Oregon State University, USA, andres.susaeta@oregonstate.edu
 
Suggested Citation
Sun Joseph Chang and Andres Susaeta (2025), "The Impact of Property Taxation on Urban and Timber Investments", Journal of Forest Economics: Vol. 39: No. . http://dx.doi.org/10.1561/112.00000584

Forthcoming: 28 Feb 2025
© 2025 S. J. Chang and A. Susaeta
 
Subjects
 
Keywords
JEL Codes: Q23, H21, Q57, Q58
property taxationtax burdenforest burdenunmodified property taxforest productivity taxseverance tax
 

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In this article:
1. Introduction 
2. Land Expectation Value Formulas, Forest Value Formula, and Measurements of Tax Burden 
3. Analyses 
4. Discussion 
5. Conclusions 
References 

Abstract

The traditional justification for preferential property tax treatment of timber properties stems from the belief that unmodified timber property taxes burden landowners more than agricultural property taxes. This paper compares the tax burden of fully regulated forests to urban commercial properties of equal value, both generating identical annual income. Surprisingly, our analysis reveals that unmodified property taxes slightly burden forest properties less than urban commercial properties, regardless of productivity. As most US forest landowners benefit from low tax burdens, advocating preferential tax treatment for timber properties may require emphasizing the significant differences in services received compared to urban commercial properties.

DOI:10.1561/112.00000584