61 Pa. Code § 91.155 - Timber and crops

(a) Except as provided in subsections (b) and (c), a writing transferring interests in standing timber and crops is a taxable document under this chapter.

(b) Standing timber is considered nontaxable personal property if the writing provides for severance and complete removal at once or as soon as it can be reasonably done. A writing that conveys an interest in standing timber is a taxable document if any of the following apply:

(1) The transferee has discretion as to the time of removal.

(2) The writing is indefinite as to the time for removal.

(3) The writing provides more time for the removal than is reasonably necessary considering the nature and extent of the land and the number of feet of merchantable timber to be removed.

(4) Even if the writing provides a reasonable time for the severance and complete removal of the timber, the transferor concurrently conveys title to the underlying real estate to the transferee, or gives the transferee the right or option to purchase the underlying real estate within the period for severance of the timber.

(c) Products of the soil are considered nontaxable personal property if one of the following applies:

(1) The products are planted annually and gathered during a single, annual season.

(2) The products are propagated for the purpose of being transplanted or grafted.

(3) The products require annual pruning, spraying or cultivation.

(4) The products are the annual products of shrubs, trees or annual or perennial plants.

Notes

61 Pa. Code § 91.155

The provisions of this § 91.155 adopted September 9, 1988, effective 9/10/1988, 18 Pa.B. 4096; amended December 14, 2007, effective 12/15/2007, 37 Pa.B. 6516.

The provisions of this § 91.155 issued under section 1107-C of the Tax Reform Code of 1971 (72 P. S. § 8107-C).