Jones Lumber Corp. v. Brickwedel

DRAPER, P. J. Two years ago, we held the 1963-64 assessment of timberlands in Del Norte County to be unconstitutionally discriminatory (Jones Lbr. Co. v. Del Norte County, 251 Cal.App.2d 645 [59 Cal.Rptr. 644]). Hearing was denied by our Supreme Court, and certiorari was denied (389 U.S. 1015 [19 L.Ed.2d 661, 88 S.Ct. 591]). The assessor had appraised all old growth timber in the county at the same market price. In fixing assessed values, however, he had applied a sliding scale of discounts based solely on the quantity of timber owned by each taxpayer. The obvious result was to assess at different rates properties which had been appraised at identical values, and was clearly discriminatory.

On this petition for writ of mandate, we must determine whether the same practice is being followed in the 1969-70 assessments. We issued alternative writ.

Since our earlier decision, the State Board of Equalization has adopted a regulation governing valuation of timber (Cal. Admin. Code, tit. 18, rule 41). This rule recognizes a distinction between “immediate harvest value” and “market value.” The former is the price a willing and informed buyer would pay a like seller “for timber to be harvested in the immediate future.” It is to be determined by considering “all elements of value, such as species, quality,• accessibility, terrain, logging conditions, and distance from market.” But this figure is to be synonomous with market value " only if all of the presently merchantable timber included in the unit may reasonably be expected to be harvested within the immediate future.” In converting immediate harvest value to market value “consideration shall be given to all economic factors which relate to operating a stand of timber,” including the “length of time over which the timber in the unit may reasonably be expected to be harvested. . . .” In using comparable sales as a basis for appraisal, the assessor shall consider probable harvest periods. He may also, upon his estimate of probable harvest life, capitalize net periodic income.

We find no objection to rule 41 as such. Admittedly, it considers the quantity of timber owned by the particular taxpayer, but it specifically makes this only one of many factors to be weighed. An analysis by the state board’s timber appraisal staff shows that sales of large blocks of standing [682]timber have often been at a lower rate per thousand board feet than sales of smaller blocks. Since market value is the base for determining assessed value, such sales may be considered with other facts which bear upon comparability of sales.