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Canada has 400 million ha of forest land. Only 25 million ha (5%) is in private ownership. This private forest land is generally divided in two categories: 450 000 private woodlots covering about 15 million ha in the settled regions of Canada and about 5 million ha in larger blocks owned by pension funds, investors, and forest products companies. The private woodlots are subject to municipal or provincial property taxes. The provinces use several approaches to determine the level of tax to be paid. In some cases, the tax system is used to provide an incentive to manage the land. The property tax system offers a policy tool to encourage active management of the land and help ensure a healthy, diverse, and productive forest that contributes forest-related ecological goods and services to the community as well as timber to the local economy.    It is in the long-term interests of rural communities that land remains in production and that forested land is managed to maintain the forest in a healthy condition and produce both forest-related environmental goods and services and timber to support the rural economy. A well-designed property tax structure based on incentives that is accepted as fair and is supported by taxpayers can help to achieve these objectives. The survey of provincial property tax systems shows several approaches to the application of property tax systems on forest lands.    Property tax systems applied to forest land that are based on incentives to actively manage the land and are coupled with financial assistance for tree planting on idle land offer simple and practical ways to keep rural land in production. This is particularly true of marginal/sub-marginal land that has been cleared but is no longer used for agricultural production. Incentives help to ensure that forested land is managed to maintain the forest in a healthy condition and produce forest-related environmental goods and services (EG&amp;S) as well as timber to support the rural economy.

The taxation of privately owned forest land in Canada: A review of the taxation systems in all ten provinces