YIELD TAX LAWS 
ALABAMA 
Yield Tax.! Optional. Enacted 1923. Amended 1935, 1937, and 1945. 
Code Recompiled 1958. Title 8, Sees. 189-201. 
Classification 
Qualification. Land suited for reforestation or 
forest culture generally may be classified as 
“auxiliary State forest.” 
Procedure. The owner makes application to the 
Department of Conservation requesting classifi- 
cation of the property. The Department of Rev- 
enue and the Department of Conservation 
jointly appraise the land, independent of the tim- 
ber, with a view to its use for timber production. 
If the Department of Conservation is satisfied 
and the Governor approves, a contract with the 
owner is executed on behalf of the State and ap- 
proved by the Attorney General. One copy is 
filed with the Department of Conservation, one 
with the Department of Revenue, one delivered 
to the owner of the property, and the fourth re- 
corded, at the expense of the owner, in the pro- 
bate office of the county. 
Conditions governing continued classification. 
The property must be devoted to reforestation or 
timber culture and must not be used for any pur- 
pose that will militate against the growth of the 
timber thereon. The owner must use diligence in 
protecting the property from fire. Timber may be 
cut, turpentined, or otherwise utilized only in 
accordance with rules formulated by the Depart- 
ment of Conservation. 
The property may be transferred without 
affecting classification since the contract is made 
1 Known as the “Auxiliary Forest Law.” 
31 
on behalf of the owner, his successors, and assigns 
and runs as a covenant with the land. 
Declassification 
Termination of the contract may be effected 
either by the owner’s voluntary withdrawal, 
which is permissible after 5 years, or by his failure 
to comply with the terms of the contract. When 
the property is declassified in whole or in part, 
the value of the timber thereon is appraised 
jointly by the Departments of Revenue and Con- 
servation, and the owner is then required to pay a 
declassification tax of 8 percent upon such ap- 
praised value. 
Tax treatment 
Land. Auxiliary State forests of 160 acres or less 
are exempt from the ad valorem tax. In the case of 
tracts of more than 160 acres, the assessed value 
of the land is based upon the joint appraisal of the 
Departments of Revenue and Conservation at the 
time of classification. This valuation may not be 
increased during the period of classification. 
Timber. An 8 percent yield tax is imposed upon 
the value of the timber cut. Such value is deter- 
mined by joint appraisal as in the case of declassi- 
fication. 
Tax administration 
Collection. The tax on forest land is paid in the 
same manner as other ad valorem taxes. The yield 
tax is paid to the Department of Conservation. 
Use of revenue 
Revenues are distributed to the county tax 
collector and treated as ad valorem taxes. 
