Establishing a new classification for managed timberland leased for substantial income

HB 5340 creates a new property tax classification for timberland leased for carbon credits, requiring the lease to generate at least $10,000 annually in carbon credit income. Landowners with 10 or more contiguous acres of timberland meeting the state's "managed timberland" definition (including sustainable forest management plans) can apply for this classification through the Tax Commissioner's certification. Once certified, the property will be assessed under this new tax classification for property tax purposes, with the classification remaining stable unless the land's use changes or the property's tax class shifts between Class III and IV. This aims to provide tax consistency for landowners participating in carbon credit programs while encouraging sustainable forest management.