Good tax news (I think)

Nova · March 07, 2006, 08:30:03 AM

Yesterday heard back from the civic taxation people about an appeal I lodged regarding a parcel of land purchased last year. Since the property had never been surveyed we had one completed prior to purchasing it and to our surprise found a house on the property not belonging to the previous owner. In the process of straightening out the encroachment the taxation people misread the survey report and changed the classification of the property from forestry resource (non-taxable) to residential and resource (taxable) increasing the assessment by approximately 800%

. Good news is they have reverted the property back to forestry resource although I have yet to see if the dollar amount of the assessment is still the same. As a proviso of reverting to forestry resource I need to have a forestry management plan in place within two years something I was planning to do anyway. I am working thru an internet distance learning course provided by our provincial DNR but I think I may be better off kick starting this process by hiring a forester to help because my primary focus this year will be building a house and starting to put business infrastructure/equipment in place. I could go to the yellow pages and start dialing but I would prefer to hook in with someone who comes recommended... At present have two contiguous parcels of approx 40 acres on a slope facing north, primarily hardwood (about 75 - 80%). I think it was an old pasture that reforested on its own, looks like its been growing for about 80 years since the last time it was used as a pasture. The grey birch are starting to die off and the older poplar/aspen aren't far behind. Most of the beech is infected and about 99.9% of the cherry has black knot real bad. Would like to acquire a couple of other parcels near by but that will have to wait for a bit I suspect. Anybody have names they could throw my way of foresters that work in the Annapolis Valley region of Nova Scotia?

Nova

SPIKER · March 07, 2006, 08:08:54 PM

Hey Nova:

great news for you hopefully> anyhwo does the gov up there have foresters to do this? here in USA (Ohio) anyhow you have to have a forester do the initial plan for you and you have to follow it. they provide the forester in OHIO but this may not be the case other places.

mark <M

Nova · March 07, 2006, 08:56:58 PM

Hey to you too Spiker! I spoke to a forester in the DNR a month ago and she is sending info my way regarding programs available but it has not arrived yet. I called her again today and when she gets back in the office I'll ask her about this. Thanks. Also there are funds available for reforestation & improvements from levies paid by local lumber businesses but not sure what is eligible or how to tap into them...yet. If I can go one of these routes it is more attractive financially but if not still will need to persue a forestry consultant.

Nova

Ron Wenrich · March 09, 2006, 05:52:13 AM

Tell me more about the "internet distance learning program". There sure is a lot of information to absorb.

Nova · March 09, 2006, 06:33:20 AM

http://www.gov.ns.ca/natr/publications/forpubs.htm

http://www.gov.ns.ca/natr/extension/woodlot/default.htm

Ron, it is the bottom link I am referring to. I am very early in the process, but so far it appears to be more of an introductory concept level to stimulate/direct you to additional reading. I believe it will be useful for me because this is an area I have done very little study in so far. You have to register and you are given a code/password to enter to gain access to the materials. They do this to gain information on who is using the program (the forester mentioned she had seen my name the first time I called her). If you do not want to register the option to preview portions of the material is available thru that link. I believe some of the info being mailed from the DNR forester is from the first link.

Nova

Nova · March 11, 2006, 10:13:13 AM

Just an update. Received the materials from the DNR and made contact with a regional DNR office where my property is located. Spoke to a forestry technician who will meet with me toward the end of the month to walk the property with me and give some advice as well as point me toward local businesses who are involved in the forestry fund. Not sure where this will lead yet, but it is progress. Found out from the technician that the DNR used to do forest management plans for small woodlot owners but with the onset of the 'new' way of government they are now only responsible for monitoring and leave the management plans up to individuals and business.

Nova · March 31, 2006, 04:59:08 PM

Walked my property with the guy from DNR yesterday. Learned a lot of good things from him but before we could talk about management plan options he was called away to a forest fire. I'll hook in with him by e-mail to finish this part of our conversation.

Tom · March 31, 2006, 06:14:23 PM

Why don't you get some doughnuts and a thermos of coffee and visit his office, or take him to lunch. It would probably make his day. Most of the Government employees, especially the "grunts", seldom get recognized for knowing anything nor treated as they've seen their bosses get treated. As long as you don't keep him from trying to complete a harrowing schedule, he will remember you as someone he enjoys being around. That's important in agriculture.

Nova · March 31, 2006, 10:26:34 PM

Thanks for the advice Tom. This particular guy is a gem. He loves to teach, especially if you show any interest. In addition to finding out that he has a private business as an arborist, I found out during our conversation that his father and my uncle used to work in different regions of this province for the same forestry company. When my wife and I purchased this property we paid a bit more than the going rate because of the potential we saw when we walked thru the forest. The DNR guy couldn't stop commenting on how good the site was and how with a little selective cutting it would improve that much more. Once we have a bit of rain and his schedule slacks off a bit, that may just be the ticket to show my appreciation for his help.

slowzuki · April 01, 2006, 06:29:42 AM

Good to hear Nova,

If you get a chance, there is a book called Out Roddies Way it has a humurous style but lays out the concepts in an interesting way. The forester may have a copy.

Nova · April 01, 2006, 08:05:44 AM

Slowzuki thanks for the title, I'll keep my eye out for it and ask the DNR fellow about it. This guy is a technician or technologist not a forester. He graduated from the Ranger School in N.B. about 12 years ago.

Woodhog · April 01, 2006, 01:18:05 PM

Nova..

http://www.novaforestalliance.com/inside.asp?cmPageID=114

The above site will take you to the publication section of Nova Forest Alliance, here you can download their Best management Practices manual, this is used a lot in Nova Scotia as a guideline.

There is so much information scattered around with DNR and all the other groups in NS that is all gets quite confusing..

I just make up my own plan following the section in the BMP manual around page 11.

You can get an aerial photo if you want and mark your lot (lots) on it , a copy of the topomap for the area and trace the outline of the lot on it also, inventory roughly the wood, you basic plan etc this will show intent to follow a plan for tax purposes.

You really dont have to spend money to hire anyone with a little study and following that manual.

At the moment in N.S. the industry is in such sad shape that you dont want to spend any money that
you dont have to as you might not get it back to quickly with todays prices/demand for pulpwood , high fuel and maintenance costs etc...also I would expect those $1000.00 acre lots that were bought up in the last few years are not looking so good now...

I am fairly close to you and our log prices have fallen almost 25 percent in the last year....

Good luck..

SwampDonkey · April 01, 2006, 02:57:35 PM

Another source to tap into is the woodlot owners associations. They may pay you a subsidy to do your management plan. If not the going rate is usually based on a set price for the writeup and a per acre price for the walk about and data collection. Something like $350 for the writeup and $4.50 an acre for the cruise/ecology data collection. The government pays $100 per property identification number on your tax bill in New Brunswick. Some of our marketing boards help owners with subsidies beyond the $100. In our area the Pulp mill at Nackawick payed the board $100,000 for management work, plus 0.05% was dumped into the fund from wood sales. Some other mills do this in other regions.

You can browse my site in the 'Management Plan' section and get a sample plan to work from as a template. We've stopped subsidizing plans in our area, except the $100, because people were using them as subsidized cruises to liquidate their woodlots. We've decided the serious owners that want to manage their woodlots won't mind paying for the plan. The cost of the plan is peanuts compared to revenue generated from following a plan. This new approach encourages you to follow a plan, rather than shelf it in the closet.

cheers

SwampDonkey · April 01, 2006, 03:08:22 PM

Quote from: Woodhog on April 01, 2006, 01:18:05 PM
also I would expect those $1000.00 acre lots that were bought up in the last few years are not looking so good now...

Recently a 100 acre parcel of crown land sold for $180,000. I don't know how they expect to recoup thier costs because you'de never get it back in the current market environment if they cut every stick, and then all your left with is a brush pile for a few years. $50- 60,000 is more reasonable if you don't want every woodlot being purchased turned into wasteland. I know alot of logging businesses that purchase land at down to earth prices and never log them, they just log the high priced woodlots.