For ad valorem tax purposes standing timber is taxed only once following its harvest or sale. Standing timber is taxed at 100 percent of its fair market value. It is subject to taxation even if the land underneath is exempt unless taxation has been prohibited by federal law or treaty.
The fair market value is multiplied by the appropriate mill rate to determine the tax amount due.
Standing timber is defined to include softwood and hardwood pulpwood, chip and saw logs, saw timber, poles, posts, and fuel wood. Standing timber does not include orchard trees, ornamental or Christmas trees, by products of harvesting (bark or stumps), and fuel wood harvested by the owner which is used exclusively for heating the owner's home.
The "sale" of standing timber as defined by Georgia law is the "arm's length, bona fide sale of standing timber for harvesting separate and apart from the underlying land and shall not include the simultaneous sale of a tract of land and the timber thereon."