Soper-Wheeler Co. v. State Board of Equalization

The litigants call on this court to resolve two issues of law pertaining to the formula utilized to tax real property which is timberland. We examine and explain the pertinent constitutional, statutory and regulatory provisions. As will be seen, we conclude: First, the immediate harvest value must be averaged on the preceding 20 quarters. Second, for the purpose of taxing land, the timberland values of the pine-mixed conifer region of California are based upon the immediate harvest value of both young and old growth.

I

Background of Taxation System on Timberland

To understand the controversy we must understand a bit of its history. Prior to 1974 the taxation system of timberland was such that the taxpayer was required to pay property tax upon land as well as upon the standing timber. Taxation of the timber, could be avoided, however, by harvesting 70 percent or more of the timber over 16 inches in diameter. The timber then would be exempt for a period of 40 years. This system encouraged timberland owners to harvest their timber after 40 years, a practice not in accord with good forestry. (See the Preliminary Rep. of the Sen. Select Com. on Taxation of Timber and…