Understand property, harvest and severance taxes – Don’t pay unnecessarily!
An OSWA member recently wrote in:
“Well, it happened again. I did some logging on my aunt and uncles place in 2015. As the logger, we keep all the records of board feet cut, in our office, and report the numbers to them, at the end of the year, so taxes can be paid. Dorothy died in 2015, so now a bank manages their estate, and their daughter received the forms in the mail, promptly forwarding them to the manager.
“The property was never set up as a Small Tract Forestland, though she received both the Forest Products Harvest Tax form, and the STF severance tax form. The manager called today, speaking to my mother, not sure what to do. Well my mother didn’t know either. She called my other uncle, Hubert, who DID apply for STF, and he said, yes, you need to pay both taxes.
“Well, he either didn’t know or didn’t remember. So, tonight, I called the manager and said NOOOO!, don’t pay the severance tax. Everything is taken care of now, but I still wonder how many other timber owners, who have NOT applied for STF, are getting severance tax forms, and going ahead and paying the money, unnecessarily.”
What does it mean?
Property, harvest and severance taxes can be confusing. Our own OSWA member Terry Lamers has put together a SPECIAL TAX ALERT helping spell this out for OSWA member.
Thank you, Terry – for your great reporting and your support to other OSWA members!