The State of New Hampshire has a real estate tax and by definition timber is considered to be real estate, therefore taxable. However, the method in which it is taxed is different from other real estate and is described in the State Constitution. Timber is only taxed at the time it is cut and at a rate, which encourages the growing of timber. In order for the municipal assessing officials to be aware of cutting operations the Town of Derry Assessors Office must be notified of the cutting by the owner by filing a notice of intent to cut timber.
The Notice of Intent, which is required by law, notifies the assessing officials, NH Department of Revenue (DRA), and the NH Div of Forest & Lands. Timber on all land ownerships is taxable at 10% of the stumpage value at the time of cutting
- The Notice of Intent to Cut: (RSA 79:10) (Form PA-7) Forms are available from the DRA and the Town Assessor’s Office.
- Report of Wood Cut: (RSA 79:11) (Form PA-9) Report of Wood Cut forms are sent to the owners filing a notice along with a certificate, which should be posted at the job site. Reports of wood cut must be filed with the town within 60 days of completion or by May 15, whichever comes first. The report form serves as the basis for determining the timber yield tax.
- Doomage: (RSA 79:12) (RSA 21:J 39) (RSA 79:28 & 28-a) Fines for non-compliance range up to $2000. A Doomage penalty may be assessed for improper reporting (Doomage is two times what the tax would have been if the Report had been seasonably filed and truly reported.)
Excavation (RSA 72-B:1 through 11 and 13 through 17)
This tax imposes a $.02 per cubic yard of material charge on earth taken from a "taxable excavation." It will be administered much like the Timber Tax.
Every tax year and prior to excavating, any owner who intends to excavate earth must file a notice of intent to excavate (Form PA-38) and administration fee with the Town of Derry Assessor’s Office for each parcel that is to be excavated.
After the operation is complete or no later than April 15 of each tax year, a "Report of Excavated Material" must be filed with both the municipality and the Department of Revenue Administration.
- Notice of Intent to Excavate: (RSA 72-B:8), ) (Form PA-38) Forms are available from the DRA and the Town Assessor’s Office
- Report of Excavated Material: (Form PA-39) Please note that, unlike the intent to cut wood, the intent to excavate cannot receive an extension.
- Doomage: (RSA 72-B:10) A Doomage penalty may be assessed for improper reporting (Doomage is two times what the tax would have been if the Report had been seasonably filed and truly reported.)