
Serving Hancock, Washington, Penobscot, and Southern Aroostook Counties
Phone: 207-214-2875
Email: downeastforestryllc@gmail.com
Tree Growth Tax Law
The Tree Growth Program is a tax reduction program that benefits landowners owning 10 acres or more that are managing their forest and contributing to the forest economy. This program is not a good fit for landowners that do not sell commercial forest products. Commercial Forest Products are forest resources that you are selling to someone else. This can include products such as logs and pulpwood, craftwood, firewood, maple syrup, etc. Landowners that do not sell commercial forest products but are still looking for a tax reduction could potentially qualify for the Open Space Program instead.
There is no required amount of wood that has to be sold in any given period. The idea is that you are following the harvest guidelines outlined in your forest management plan that is written by a forester. When a forester writes your plan, they will cater the recommendations to your specifications. If you wish to sustain your forest, the forester will likely recommend a light harvest treatment such as removal of dead and dying trees and creating space for new growth. If you wish to grow larger trees, the forester will likely recommend removing surrounding trees from around a high value or future high value tree to help aid in growth.
It is important to understand that once your property is in Tree Growth, it can be very cost-prohibitive to remove acreage from the program. For this reason, you need to decide if you plan to sell, build, or subdivide any portion of the property now or in the future. The forester preparing your plan and Tree Growth application needs to know how many acres and a rough location for the area you wish to exclude from Tree Growth so that the application can be prepared properly. When you file the application with the tax assessor, the assessor will tax the excluded area at a different rate than the rest of your property. If you decide to sell, build, or subdivide, there will be no tax repercussions from the Tree Growth Program.