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IL Timber Harvest & Property Taxes (IL)

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From: James Twitchell
City:
Terre Haute, IN
So I am in the process of buying 31 Wooded Acres in Clark County, IL and I have heard that any timber harvest in IL would be subject to a tax? Is that correct? What percentage?

Additionally, does the state of IL have an land management programs that I would qualify for that might have tax benefits?

One specifically that I have heard about is a program in which the land owner cuts down big vines on the property and gets some sort of a tax benefit? Have you heard of such a program? How would I go about singing up?

Any other programs would be helpful. The land has a small creek that is basically just drainage for the surrounding ag fields. It's got about a half acre to an acre that could be considered tillable, the rest is wooded. Mostly red, white and black oak. Got some ash and beech trees as well.

Thanks for your assistance

 
Extension Message
From: Jay Hayek
Extension Specialist, Forestry
Department of Natural Resources and Environmental Sciences
jhayek@illinois.edu
Hi James:

Yes, all timber harvested in the state of Illinois is subject to a 4% timber harvest fee. Technically, this is not a fee, rather it is a yield tax. More than likely this "name game" was an attempt to get the measure to slide through the state general assembly unnoticed by "tax" hawks.

Illinois has a forestry program entitled the "Illinois Forestry Development Act." This program is designed specifically for woodland owners with manage 10 or more acres of forest land dedicated to timber production, wildlife habitat, recreation, and ecosystem services such as clean water and carbon sequestration.

Landowners must develop a forest management for their land and they must follow the plan to receive their preferential property tax incentive: a 1/6 equalized assessed value assessment as cropland.

Please contact your local IL-DNR district forester for additional information regarding the Illinois Forestry Development Act:

IL Technical Forestry Assistance Directory: http://web.extension.illinois.edu/forestry/pdf/tfb-nres-201-13.pdf

Preferencial Assessments for Wooded Acreage: http://tax.illinois.gov/Publications/Pubs/Pub-135.pdf

 
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