Arizona
For complete text of Arizona Tax Statutes and other property tax information please refer to the Arizona Department of Revenue.
Property Classification:
The Arizona property tax system is based on the principle of uniform valuation of property at its full cash value. All real property and business personal property is subject to tax except that made specifically exempt.
Property is classified by statute into 9 classes. Timber land with standing timber is defined under Class 1. An assessment ratio is specified for each of these classes. (AZ Code Sec 42-12001(2))
The assessment ratio for Class 1 property is 25%, this is the amount that is multiplied by the full cash value to arrive at an assessed value. The assessed value is then multiplied by the tax rate to calculate the property tax.
Historically standing timber has not been valued by an assessor, and is not considered taxable.
Severance Tax:(AZ Code Sec. 42-5201)
For purposes of this discussion the following definitions apply:
Severer - means a person engaging in the business of mining or timbering.
Severing - means mining or timbering.
Timber product - means poles, saw logs, pulpwood or firewood which result from timbering.
Timbering - includes all activities of a severer within this state resulting in the production of a timber product, including felling, limbing, bucking, skidding, loading and all activities ordinarily required under the terms of United States forest service timber contracts granted under 36 Code of Federal Regulations section 223.1, whether performed by the severer or a contractor of the severer.
A. There is levied on any severer, and the department shall collect, an excise tax, denominated as a severance tax.
B. Except as provided in section 42-5203 (Sales at retail; exemption), the severance tax is in lieu of any other tax imposed upon the activities of timbering or mining and processing.
The amount of the severance tax levied on a severer engaging in the business of timbering shall be:
1. Two dollars thirteen cents ($2.13) per thousand board feet for timber products that are derived from ponderosa pine.
2. One dollar fifty cents ($1.50) per thousand board feet for timber products derived from all species except ponderosa pine.