Abstract
Preferential property tax programs for private forestland owners were designed to relieve the financial pressure of increasing tax burdens on this sub-set of property owners. These programs are designed to assist commercial forestry and are administered at a state level. Many programs offer a significant reduction in an owner`s tax liability. Without some sort of reimbursement to the municipality, a “tax shift” occurs. This is when the tax rate must increase to maintain the same level of tax receipts, without reimbursements from the state. For those not receiving preferential valuation this implies a larger tax liability. This study estimates this effect in four study areas in New York State under RPTL 480-a. It has been found that the current program does a have a significant effect on the tax base of 2 of the 4 municipalities studied, though the actual tax increases for non-enrolled landowners is small.