Properly Supplementing Timber Taxes

We have received several calls recently from concerned tax collectors who have been told that they need to completely change the way they are supplementing Timber/Yield Tax invoices. Initially the guidance indicated that collectors would need to track Timber Yield Taxes separately outside of Avitar Tax Collect (using Excel or an abacus). We’ve asked around and it seems as if, with a few minor changes, you should still be able to use your Tax Collect system.  Following are a few of the common questions and answers as we currently understand the situation.

What do I do if I receive an intent to cut?

First, you need to make sure you are getting a copy of the intent to cut from your assessing department (RSA 79:10 I. (c)). The intent puts everyone on notice that this property will have a bill due at some point in the future. This information becomes very important if the property is being sold. The closing company/bank will need to be told this intent to cut exists on this parcel. 

Once you receive an intent to cut, you should be putting a flash Post-It note on all parcels listed on the intent to cut. The note needs to state an intent to cut has been filed. If at some point between the time you receive the intent to cut and the actual bill for the timber cut you get a call questioning if the owner has outstanding taxes, you need to inform them of the intent to cut.

How do I supplement Timber Yield invoices into Tax Collect?

Select Utilities | Supplement Warrant.  Select the type of warrant, or add a new warrant as needed. Once you enter and tab out of the Map/Lot/Sub text boxes for the parcel on which the supplement should be added, the system will populate the property location and the owner name/address based on the current owner of the property.  Note, however, this is just the default to save you time when adding most supplements — you can enter a different name and address.

Do I have to add the supplemental bill using the name/address of the property owner?

No. The system will default to the owner of the property but you can — and in some cases should — manually enter the Owner/Address on the Intent/Warrant provided by the assessor.

What do I do when the logging is being done on property owned by the federal, state, or municipal government?

If the intent to cut indicates the type of ownership is “6d — Previous owner retaining deeded timber rights” or “6e — Owner/Purchaser of stumpage & timber rights on public lands Fed, State, municipal etc.” then you absolutely need to manually enter the name of the Owner of the timber rights (i.e. logger, former owner) and not leave the entity to be billed as the State of New Hampshire, US Government, or whomever the system defaults to as the property owner.

What do I send to the logger for the actual bill

You can use the bill generated by the DRA’s system, or if the due date is not correct you can print the supplement out of Tax Collect and include it with the DRA’s bill.

What do I do when the logging is done on multiple contiguous parcels with different PIDs?  To which parcel do I add the supplement?

This is the tricky part. Currently, if the timber tax warrant lists multiple parcels with only one amount, the only option up to now has been to pick one of the lots and supplement the whole amount to that specific parcel. We are looking into ways to update collect to allow some type of association with multiple parcels, but as of right now, that does not exist. 

Can I just choose to not supplement the Timber Taxes into Tax Collect?

As these amounts need to appear on your MS-61 they must be added in your Tax Collect system.

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