December 2, 2005

House of Representatives
Washington, DC 20515

Dear Congressman,

On behalf of the National Association of State Foresters, I am writing to encourage your support for the Timber Tax Act of 2005 (H.R. 3883). Tax policy has important impacts on forest management, as it influences the decisions made by the forest industry. Recent research conducted by PricewaterhouseCoopers found that the U.S. has an effective tax rate that is 16 percent above the median of other countries. Policy that would improve U.S. competitiveness in a global market is essential. The National Association of State Foresters is a non-profit organization that represents the directors of the state forestry agencies from the states, eight U.S. territories, and the District of Columbia. State Foresters manage and protect state and private forests across the U.S., which together encompass two-thirds of the nation's forests.

The bill will reduce the tax paid on timber at harvest. The system for deducting qualified timber gain from the sale or exchange of timber will benefit small growers without penalizing larger timber entities. As managers of two-thirds of the nation's forests, we see a strong need to help private landowners manage their forestlands in both a sustainable and economically feasibly fashion. Too often the alternative is to lose forestland altogether.

Sustainable forest management ensures good wages for working families and a dependable supply of wood and paper products, all while maintaining the many environmental and recreational benefits of healthy forests. With increasing pressures on private forest landowners, including development, taxes, and changing markets, it is important that forest tax policy help landowners provide valuable environmental and recreational benefits to society. The Timber Tax Act of 2005 will help to put the U.S. forest products industry on a level playing field with its global competitors, helping to address the challenges that globalization brings to this important domestic industry. Please consider supporting the bill by co-sponsoring the legislation.

Sincerely,
James B. Hull
President