Chapter 6
Evergreens Intended For Use
As Christmas Trees
1
Size Requirement
• Evergreens intended for use as Christmas
trees are part of the horticultural
classification. Therefore, the minimum
acreage for classification is 5 acres of land
actively engaged in the commercial
production of evergreens.
2
Income Requirements
• Instead of the standard income requirement
for other horticultural land, the General
Assembly requires that the North Carolina
Department of Revenue establish an “in lieu
of gross income” requirement until the
evergreens are harvested.
3
Income Requirements
• NCDOR is also required to establish a gross
income requirement for this type of
horticultural land that differs from other
horticultural land. This separate gross income
requirement will be applied when the
evergreens are harvested from the land. Until
that time, the property must meet the standards
established in the “in lieu of gross income”
requirement.
4
In Lieu of Gross Income
Requirement
• While Christmas tree farms are generally associated
with the mountains, there are a number of Christmas
tree farms located throughout the state. NCDOR
establishes one “in lieu of gross income” requirement
and one gross income requirement for the mountains
(Major Land Resource Area 130). NCDOR also
establishes a second “in lieu of gross income”
requirement and a second gross income requirement
for the rest of the state (Major Land Resource Areas
133A, 136, 137, 153A, and 153B).
5
In Lieu of Gross Income
Requirement
• The “in lieu of gross income” requirement is
that the trees must be managed under a sound
management program until they are
harvested. While the recommended numbers
(spacing, harvest cycle, etc.) differ between
the two regions, the principles of the sound
management program are the same:
6
In Lieu of Gross Income
Requirement
Sound Management Practices
1. Proper site preparation, controlling problem weeds
and saplings, taking soil samples, and applying
fertilizer and lime as appropriate.
2. Proper tree spacing.
3. A program for insect and weed control.
4. An appropriate harvest cycle.
7
Gross Income Requirement
• At the date of this publication, the gross income
requirement for acres undergoing Christmas tree
harvest is $2,000 per acre for the mountains
(MLRA 130) and $1,500 per acre for the rest of
the state (all other MLRAs). Once the specific
acres are harvested, the acres revert to the “in lieu
of gross income” requirement until it is time to
harvest once more.
8
UVAB Use-Value Manual
• The Christmas tree requirements are
published annually by NCDOR in the
UVAB Use-Value Manual.
9
Christmas Tree Examples
10
1-Q
• Owner applies for horticultural PUV on an 8-acre
tract recently planted in Christmas trees. The
owner has no income to report for the tract.
11
1-A
• There is no gross income requirement for this tract
until the trees are being harvested. Instead the
tract must meet the “in lieu of gross income”
requirement for the years preceding the harvest
years, which basically details the sound
management practices for Christmas tree
production in the geographic region.
12
2-Q
• A 9-acre tract planted in Christmas trees is
currently receiving present-use value. The trees
are entering the harvest cycle and it will take 3
years to harvest the entire tract. There are 4 acres
undergoing harvest this year. The tract is located
in MLRA 130 Mountains.
13
2-A
• The gross income requirement for acres
undergoing Christmas tree harvest in MLRA 130
Mountains is $2,000 per acre. Since 4 acres are
undergoing harvest this year, the tract needs to
produce a minimum of $8,000 gross income for
the year.
• Once the harvest is completed on the 4 acres, the
requirement for those acres will revert to the “inlieu of income” requirement.
14
3-Q
• A 9-acre tract planted in Christmas trees is
currently receiving present-use value. The trees
are entering the harvest cycle and it will take 3
years to harvest the entire tract. There are 4 acres
undergoing harvest this year. The tract is located
in MLRA 136 Piedmont.
15
3-A
• The gross income requirement for acres
undergoing Christmas tree harvest in MLRA 136
Piedmont is $1,500 per acre. Since 4 acres are
undergoing harvest this year, the tract must
produce a minimum of $6,000 gross income for
the year.
• Once the harvest is completed on the 4 acres, the
requirement for those acres will revert to the “inlieu of income” requirement.
16