Timber Tax & Excavation Tax

Timber Tax
 

The NH Department of Revenue Administration (DRA) is responsible for the administration and enforcement of RSA 79, Forest Conservation and Taxation. The Timber Bureau of the DRA Municipal and Property Division, administers and enforces the proper filing of applicable forms and reporting of timber cutting operations. The timber tax appraisers also perform individual training sessions for new personnel or upon request. 

In order for the municipal assessing officials to be aware of cutting operations they must be notified of the cutting by the owner filing a form Notice of Intent to Cut Timber (PA-7).
 
Timber on all land ownerships is taxable at 10% of the stumpage value at the time of cutting. The only exemptions are as follows:
 
1. 10 MBF saw logs and 20 cords fuel wood for personal use by the owner. (RSA 79:1 II. (b)(1) & (b)(2))
2. 10 MBF saw logs and 20 cords of wood for land conversion purposes when all permits for the conversion have been received. (RSA 79:1 II. (b)(5))
3. Shade and ornamental trees, usually considered to be trees within striking distance of a building. (RSA 79:2)
4. Christmas trees, fruit trees, and nursery stock and short rotation tree fiber. (RSA 79:2)
5. Any amount of firewood for maple syrup production. (RSA 79:1 II.(b)(2))
6. Government and utilities not selling the wood. (RSA 79:1 II.(b)(3) & (4))
A supplemental PA-7 shall not be required when the total volume of the cut does not exceed the total volume reported by 25%, except if a timber tax bond was required with the original Notice of Intent to Cut. If a bond was required with the original PA-7, an additional bond will be required and supplemental Intent to Cut filed and signed before the original volumes are exceeded. 
 
Town officials have 15 days to sign the Notice of Intent to Cut (RSA 79:10 I.(b))
 

Excavation Tax

The NH Department of Revenue Administration (DRA) is responsible for the administration and enforcement of RSA 72-B Excavation Tax and advising municipalities with regards to RSA 155-E, Local Regulation Excavations and RSA 485-A:17, Terrain Alteration. The excavation tax is assessed at $.02 per cubic yard and an administration and enforcement fee of $100 is due annually when filing a PA-38, Notice of Intent to Excavate, for excavations that are not exempt.

A separate Form PA-38 must be filed for each tract of land where the excavation will occur and prior to excavation.