Timberland Protection Zone (TPZ) Rules

Timberland Production Zones (TPZs) are areas reserved for the production of timber and compatible uses. You still pay an annual property tax, but the assessed value of TPZ land is valued for the cultivation of timber. This results in a lower tax assessment than customary "highest and best use" valuation. In return for the lower assessment, the landowner must manage the property for timber and compatible uses for a minimum of 10 years. Approximately 77% of California’s 7.4 million acres of private forestlands is zoned TPZ.

There are two ways to classify land as TPZ. Under the first procedure, the landowner petitions the local government to classify the land as TPZ. The land must be capable of growing and harvesting timber, and the following criteria must be met:

• A map of the parcel must be prepared;

• A forest management plan, prepared or approved by a Registered Professional Forester (RPF) must be submitted. Timber harvest must be provided for in a reasonable time;

• The parcel must meet stocking requirements set forth in the forest practice rules adopted by the State Board of Forestry for the district in which the parcel is located. Alternatively, the landowner can make an agreement with the local government that stocking requirements will be met within 5 years;

• At the county's option, two additional requirements may have to be met. These are: A minimum contiguous ownership of up to 160 acres may be required, and the land must be of Site III or better. The county cannot require Site I or II; however, it may exclude Site IV and V land.

Timberland Production Zone property is valued in a joint process between the County Assessor and the State Board of Equalization. The county assessor classifies TPZ land into five productivity classes. Site I has the highest productivity; Site V is the least productive. The State Board of Equalization prepares timberland value tables based on these site classes. These tables show the bare land value for TPZ land. The assessor can add to these values for existing compatible uses such as grazing value per acre.

Timberland may be added to an existing TPZ holding if the landowner already has TPZ land contiguous to the new property. Some counties require physical contiguity, while others require the addition to be managed jointly, without physical proximity.

The landowner may be able to remove property from TPZ by either of two processes. The first is to petition the county board of supervisors for rezoning. This method faces some constraints. The county does not have to approve the rezoning. Also, rezoning is not effective until 10 years after the date of approval. Finally, property taxes increase immediately and continue to increase annually over the ensuing ten years. The second, Immediate Rezoning, allows for an immediate new land use upon approval, and requires that a public meeting be held to show that the rezoning is in the public interest. An Environmental Impact Report (EIR) must be written at the owner's expense, and a conversion permit from the Board of Forestry must be obtained. Immediate rezoning requires the landowner to pay taxes on the full cash value of the property in its new use for the current year and for the number of years, up to 10, that the property has been in TPZ. CALIF GOVERNMENT CODE SECTION 51130-51134