Public Act 490 Guide - CT.gov

Department of Agriculture Forest Service. As an example,
the following tables were used to calculate the Use Value
for Forest Land for October 1, 2000:
Table 1 – Land area by land class, Connecticut, 1985
and 1998.
Table 23 – Number of growing stock trees, 5.0+ inches
diameter breast height (d.b.h.) on timberland by species
and diameter class, Connecticut, 1998.
Table 37 – Net volume of sawtimber trees on timberland
by species and diameter class, Connecticut, 1998.
Table 40 – Average annual net growth and average
annual removals of growing-stock volume on timberland
by species, Connecticut, 1984-1997 (cubic feet).
Table 44 – Average annual net growth and average
annual removals of sawtimber volume on timberland by
ownership class and species group, Connecticut, 1984-
1997 (Board feet).
In addition, the following definitions from the Forest
Service publication must be mentioned:
Sapling/seedling stand: A stand-size class of forest
land that is stocked with at least ten percent of minimum
full stocking with live trees with half or more of such
stocking in saplings or seedlings or both.
Poletimber stand: A stand-size class of forest land
that is stocked with at least ten percent of minimum full
stocking with live trees with half or more of such stocking
in poletimber or sawtimber trees or both, and in which
the stocking of poletimber exceeds that of sawtimber.
Sawtimber stand: A stand-size class of forest land
that is stocked with at least ten percent of minimum full
stocking with all live trees with half or more of such
stocking in poletimber or sawtimber trees or both, and in
which the stocking of sawtimber is at least equal to that
of poletimber.
Based upon these definitions, it is apparent that sawtimber
volume may occur throughout both the sawtimber
and poletimber stands and maybe even sapling/seedling
stands. Therefore, for the purpose of calculating the use
value of forest land of a “typical” acre, the entire timberland
acreage is used as the base.
The following steps are utilized in determining the use
value of forest land:
1. Determine growth per acre.
2. Determine relative frequencies of individual species.
3. Determine the relative frequencies of the hardwood
and softwood groups.
It should be noted that stumpage values since
2000 have declined and that the recommended
value is heavily influenced by the capitalization rate
applied to all PA 490 land uses. The 2010 forest/
woodland value is influenced by reduced stumpage
value and increased cap rate.
Notice of Assessment Increase and Methodology
CGS Section 12-55(c): Each notice of assessment
increase sent pursuant to this section shall include:
(1) The valuation prior to and after such increase;
and (2) information describing the manner in which
an appeal may be filed with the board of assessment
appeals. If a notice of assessment increase affects
the value of personal property and the assessor or
board of assessors used a methodology to determine
such value that differs from the methodology
previously used, such notice shall include a statement
concerning such change in methodology, which
shall indicate the current methodology and the one
that the assessor or assessors used for the valuation
prior to such increase. Each such notice shall be
mailed not earlier than the assessment date and not
later than the tenth calendar day immediately
following the date on which the assessor or board
of assessors signs and attests to the grand list. If any
such assessment increase notice is sent later than
the time period prescribed in this subsection, such
increase shall become effective on the next succeeding
grand list.
4. Determine the statewide median stumpage prices
for the species noted in number 2 above. The stumpage
prices are reported in the Southern New England
Stumpage Price Survey Results produced as a joint effort
by Cooperative Extension (University of Connecticut and
University of Massachusetts) and the state forestry agencies
in Connecticut and Massachusetts. The average prices
should reflect the most recent five-year period for which
results are available, e.g. second quarter, 1995 through
second quarter, 2000. Fuelwood and pulpwood figures
are also calculated.
5. Determine the weighted contribution to the average
price per thousand board feet (MBF) for all species and sum
all hardwoods for a hardwood total and all softwoods for
a softwood total. The relative frequency used should be
the one determined for trees 11.0” d.b.h. and larger due
to the fact that sawtimber values are being calculated.
6. Determine the use value per acre for hardwood
and softwood sawtimber and fuelwood (hardwood) and
pulpwood (softwood).
7. Divide the total value above by an appropriate
capitalization rate.
This method was applied to obtain the 2010 PA 490
land values for forest and woodland using updated
stumpage data and a cap rate of 12.5% to arrive at $130
for 2010.
PA
490
SECTION 4: RECOMMENDED PA 490 LAND VALUES
Connecticut Farm Bureau Association • http://www.cfba.org/pa490guide.htm • Public Act 490: A Practical Guide and Overview
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