Modification to definition of timberland for real estate excise tax purposes

Intended audience: Sellers of timberland or designated forestland to governmental entities. 

Effective June 11, 2026, the definition of timberland for real estate excise tax (REET) purposes now includes land transferred or sold to a governmental entity who will manage the land as timberland or designated forestland.  

How are these sales taxed?

Sales of timberland are subject to REET at the flat rate of 1.28% of the selling price.  

How do I report the sale?

When filing the real estate excise tax affidavit (REETA): 

1. The county assessor’s office must sign the Notice of Continuance in section 6.  
2. The governmental entity must provide a Notice of Intent to Manage stating that it will manage the land according to designated forestland or classified timberland standards.