The timberland exemption is not technically an exemption. It is an assessment valuation based on timberland use. Landowners may apply for special appraisal based on their land's productivity value rather than market value. Typically, a productivity value is lower than market value, which lowers property taxes. Landowners must use their land in timberland. There is a rollback tax for taking such land out of its productivity use.

Property owners may qualify for timberland appraisal if land meets the following criteria:

If land receiving a timberland appraisal changes to a non-timberland use, the property owner who changes the use will owe a rollback tax. The rollback tax is due for each of the previous five years in which the land received the lower appraisal. The rollback tax is the difference between the taxes paid on the land's timberland value and the taxes paid if the land had been taxed on its higher market value. Plus, the owner pays 7 percent interest for each year from the date that the taxes would have been due.