Timber tax is a pretty big deal in many New Hampshire towns, especially smaller ones in the rural areas. It’s basically a sales tax on trees that have been harvested – cut and sold for timber – and while it’s not a majority part of income for any place, it’s not peanuts.
As New Hampshire Bulletin reports (full story here), the current system is facing issues:
In New Hampshire, timber is considered taxable real estate. But since that tax is assessed at the time of harvesting, some worry carbon programs that keep trees standing for decades to offset emissions could cut into local revenue.
A group of lawmakers have proposed a fix, House Bill 123, which they say would simply allow revenue from such programs to be taxed the same as felled trees. The bill comes after action last session to establish a registry of properties in the state enrolled in carbon programs, and amid ongoing debate over the management of the Connecticut Lakes Headwaters forest in the northern part of the state.
This is a classic case of an existing tax and regulatory system not working for the energy transition, as the electric system is showing.
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