Forest Service Handbook
national headquarters (wo)
Washington, DC

fsH 2709.11 – special uses handbook 

chapteR 30 – fee determination

Interim Directive No.:  2709.11-2006-1

Effective Date:  September 19, 2006

Duration:  This interim directive expires on March 19, 2008. 

Approved:  gloria manning
	          Associate Deputy Chief

Date Approved:  09/05/2006

Posting Instructions:  Interim directives are numbered consecutively by handbook number and calendar year.  Post by document at the end of the chapter.  Retain this transmittal as the first page(s) of this document.  The last interim directive was 2709.11-2005-3 to chapter 90.

New Document | id_2709.11-2006-1 | 8 Pages
Superseded Document(s) (Interim Directive Number and Effective Date) | None |

Digest:  

This interim directive (ID) provides direction for calculating annual fees for recreation residence term special use permits during the 2-year transition period following the adoption of the final rule, directives, and appraisal guidelines promulgated pursuant to the Cabin User Fee Fairness Act (October 11, 2000).  The transition began on May 3, 2006 and continues until May 2, 2008.    Notice of the issuance of this ID was published in the Federal Register on September 19, 2006 (71 FR 54795). 

33.81 – Revises paragraphs 1 and 2 to provide a specific beginning and ending date to verbiage referencing the 2-year transition period.  Adds direction for calculating recreation residence fees during the 2-year transition period.  Adds three exhibits to display sample recreation residence fee calculations (ex. 01-03).

Table of Contents

33 – RECREATION RESIDENCE LOT FEES
33.81 – Use of Appraisal Completed After September 30, 1995

33 – RECREATION RESIDENCE LOT FEES
33.81 – Use of Appraisal Completed After September 30, 1995 
1.  Establish a new base fee using 5 percent of the fee simple value of the lot, based on the appraised market value in the Forest Service approved appraisal report completed after September 30, 1995, and indexed to the current year, if: 
a.  By no later than the close of business on May 2, 2008, a request to do so is submitted in writing to the authorized officer by a majority of the holders within the group of recreation residence lots represented by the typical lot included in the appraisal (sec. 33.8, para. 3).   
b.  A majority of permit holders in a group of recreation residence lots fail to submit a request for one of the three options identified in section 33.8 by no later than 
May 2, 2008.     
c.  By no later than the close of business on May 2, 2008, a request for a peer review is submitted in writing to the authorized officer by a majority of the holders within a group of recreation residence lots represented by a typical lot, and the subsequent peer review determines that the appraisal is consistent with the regulations, policies, and appraisal guidelines adopted pursuant to CUFFA.
2.  Implement the new base fee established pursuant to one of the three options identified in section 33.8 at the time of the next regularly scheduled annual billing cycle, subject to the following phase-in provisions (sec. 33.12).
a.  If by the close of business on May 2, 2008, a majority of the holders within the group of recreation residence lots represented by the typical lot have not requested one of the three options identified in section 33.8, holders should be billed using the current base fee, plus annual indexing during the transition period.  At the next regularly scheduled annual billing cycle following May 2, 2008, assess a new base fee using the most recent Forest Service approved appraisal report applicable for the lot, and subject to phase-in provisions.
b.  If the new base fee INCREASES as a result of one of the three options described in section 33.8, or by default after May 2, 2008, implement the new base fee at the next regularly scheduled annual billing cycle, subject to phase-in provisions.  Do not retroactively assess fees for those permits where the base fee increases as a result of the transition or by default after the transition period ends, 

except in those cases where a fee increase results from holders’ requests for a new appraisal or peer review.  In cases where holders request a new appraisal or peer review, and a new base fee is calculated, submit all calculations to the Regional Office, Lands or Recreation staff for review and approval before billing the holders.  
Exhibit 01 provides an example of how to calculate a new base fee when, pursuant to one of the three options described in section 33.8, or by default after May 2, 2008, the new base fee is based upon the findings of a market value identified in a Forest Service approved appraisal completed on or after September 30, 1995, and the resulting increase in the base fee does not exceed the most recent annual fee by more than 100 percent.  
Exhibit 02 provides an example of how to calculate a new base fee in those cases where the base fee increase is greater than 100 percent of the most recent annual fee assessed the holder, making it subject to the phase-in provisions. 
c.  If the new base fee DECREASES as a result of one of the three options described in section 33.8, or by default after May 2, 2008, implement the new base fee at the next regularly scheduled annual billing cycle.  Provide a credit to those holders who have been annually overcharged during the years 2001 thru 2006, due to the billing restrictions prescribed in Section 614 of CUFFA that have precluded the Forest Service from implementing a new lower base fee using a Forest Service approved appraisal report completed since September 30, 1995.  
Exhibit 03 provides an example of how to calculate a credit.  The credit should be applied at the next regularly scheduled annual billing cycle.  If the credit exceeds the amount due at the next regularly scheduled billing cycle, all remaining credit should be carried over and applied to the subsequent billing cycle.

33.81 – Exhibit 01

Calculation of New Base Fee 1) as a Result of Transition Period Options, or 
2) by Default (i.e., When None of the 3 Options are Requested on or Before May 2, 2008) 
when the New Base Fee is Established Using a Forest Service Approved Appraisal Completed on or After Sept. 30, 1995, and Results in Less than a 100% Increase over the Most Recent Annual Fee Amount

The new base fee should be calculated beginning with the 2001 billing period (see below).  
Appraised Value of Typical Lot = $25,000.00 (as determined by a Forest Service approved appraisal report completed on or after September 30, 1995)

Base Fee = $25,000.00 x 5% = $1,250.00

Billing Year

Indexed Rate (IPD)

Corrected Billing if Fee from Existing Appraisal  Had Been Implemented
($1,250.00 x IPD)

2001 | 1.000 | $1,250.00  ($1,250.00 x 1.000)
2002 | 1.024 | $1,280.00  ($1,250.00 x 1.024)
2003 | 1.011 | $1,294.08 ($1,280.00 x 1.011)
2004 | 1.015 | $1,313.49  ($1,294.08 x 1.015)
2005 | 1.022 | $1,342.39  ($1,313.49 x 1.022)
2006 | 1.032 | $1,385.34  ($1,342.39 x 1.032)

*2007 Fee (in accordance with transition option request)

$1,385.34 x CURRENT YEAR IPD = 2007 ANNUAL FEE

Note:  The previously billed amount for 2006 was $969.74.  As calculated above, the annual fee for 2007 ($1,385.34 x IPD) will not be > than 100% of $969. 74 (2006 annual fee).

*Depending upon when a transition request is received, the new base  fee may be calculated as early as 2007 
(see above) or as late as 2009* If the new base fee is to be implemented in 2008 or 2009, use the above process as example of how the annual fee should be calculated.*

33.81 – Exhibit 02

Calculation of New Base Fee 1) When Fee Increases More Than 100 Percent Over the Most Recent Annual Fee as a Result of Transition Period Options, or 
2) by Default (i.e., When None of the 3 Options are Requested on or Before May 2, 2008) 

The new base fee should be calculated beginning with the 2001 billing period (see below). 
 
(Note:  The new base fee is subject to the phase-in provisions (sec. 33.12) since the new base fee is greater than 100% from the amount of the most recent annual fee assessed the holder).

Appraised Value of Typical Lot = $32,000.00 (as determined by a Forest Service approved appraisal report completed on or after September 30, 1995)

Base Fee = $32,000.00  x 5% =$1,600.00

Column 1 | Column 2 | Column 3 | Column 4

Billing Year

Indexed Rate (IPD)

Corrected Billing if Fee from Existing Appraisal  Had Been Implemented
($1,600.00 x IPD)

Note:  The previously billed amount for 2006 was $775.79. 

As calculated to the left, 
$1,847.72 (est. annual fee for 2007)
 - $775.79 = $1,071.93 
increase of > 100%

Example of Phase-in Fee Calculation
 ($1,071.93/3 = $357.31 to be 
phased in over 3 years)

***See calculations below***

2001 | 1.000 | $1,600.00  ($1,600.00 x 1.000) |
2002 | 1.024 | $1,638.40  ($1,600.00 x 1.024) |
2003 | 1.011 | $1,656.42  ($1,638.40 x 1.011) |
2004 | 1.015 | $1,681.27  ($1,656.42 x 1.015) |
2005 | 1.022 | $1,718.26  ($1,681.27 x 1.022) |
2006 | 1.032 | $1,773.24  ($1,718.26 x 1.032) |
2007 | *1.042 (estimate for example, not actual IPD) | $1,847.72 ($1,773.24 x *1.042) |
2008 | | *see explanation below* |
2009 | | *see explanation below* |
2010 | | *see explanation below* |

1.  PER THE ABOVE FIGURES, THE 2007 FEE AMOUNT=

$775.79 (2006 Previously Billed Amount) x CURRENT YEAR IPD + $357.31 (Phase-In Amount)

33.81 – Exhibit 02--Continued

2.  2008 FEE AMOUNT=
	
	2007 Billed Amount x CURRENT YEAR IPD + $357.31 (Phase-In Amount)

3.  2009 FEE AMOUNT=

	2008 Billed Amount x CURRENT YEAR IPD + $357.31 (Phase-In Amount)

4.  2010 FEE AMOUNT=

It is essential to continue to track and index the fees that would have otherwise been charged during the three-year phase-in period in order to determine the proper annual fee for the first year following the end of the phase-in period (i.e. in this example, the year 2010).  See example below.

Billing Year

Indexed Rate (IPD)

Corrected Billing if Fee from Existing Appraisal  Had Been Implemented
($1,600.00 x IPD)

2007 | TBD | $1,773.24 x IPD
2008 | TBD | 2007 annual fee (above) x IPD
2009 | TBD | 2008 annual fee (above) x IPD
2010 | TBD | 2009 annual fee (above) x IPD

BILL AMOUNT DUE FOR 2010 = 2009 ANNUAL FEE x IPD

*Depending upon when a transition request is received, the new base fee may be calculated as early as 2007 (see above) or as late as 2009.* If the new base fee is to be implemented in 2008 or 2009, use the above process as an example of how the annual  fee should be calculated.*

33.81 – Exhibit 03

Calculation of New Base Fee 1) When Fee Decreases as a Result of 
Transition Period Options, or 2) by Default When the Transition Ends

The new base fee should be calculated beginning with the 2001 billing period (see below).  

Appraised Value of Typical Lot = $17,500.00 (as determined by a Forest Service approved appraisal report completed on or after September 30, 1995)

Base Fee = $17,500.00 x 5% = $875.00

Billing Year

Previously Billed Amount

Indexed Rate (IPD)

Corrected Billing if Fee from Existing Appraisal  Had Been Implemented
($875.00 x IPD)

Credit Due

2001 | $1,096.29 | 1.000 | $875.00  ($875.00 x 1.000) | $1,096.29 - $875.00 = $221.29
2002 | $1,122.60 | 1.024 | $896.00  ($875.00 x 1.024) | $1,122.60 - $896.00 = $226.60
2003 | $1,134.95 | 1.011 | $905.86  ($896.00 x 1.011) | $1,134.95 - $905.86 = $229.09
2004 | $1,151.97 | 1.015 | $919.44  ($905.86 x 1.015) | $1,151.97 - $919.44 = $232.53
2005 | $1,177.31 | 1.022 | $939.67  ($919.44 x 1.022) | $1,177.31 - $939.67 = $237.64
2006 | $1,214.98 | 1.032 | $969.74  ($939.67 x 1.032) | $1,214.98 - $$969.74 = $245.24
| | | TOTAL:  $1,392.39  CREDIT DUE FROM 2001-2006

*2007 fee (in accordance with transition option request)

$969.74 x CURRENT YEAR IPD = 2007 ANNUAL FEE

$1,392.39 Credit – 2007  annual fee = CREDIT TO BE APPLIED TO 2007 BILLING PERIOD

NO BILL DUE IN 2007  BECAUSE THE CREDIT AMOUNT EXCEEDS THE 2007  ANNUAL FEE DUE

*2008 fee | | | 2007 annual fee (w/o credit applied) x CURRENT YEAR IPD = 2008 ANNUAL FEE | ANY REMAINING CREDIT SHOULD BE APPLIED TO 2008 BILLING PERIOD.  IF THE REMAINING CREDIT IS LESS THAN THE 2008 ANNUAL FEE DUE, BILL PERMITEE DIFFERENCE.
*Depending upon when a transition request is received, the new base fee may be calculated as early as 2007 (see above) or as late as 2009.* If the new base fee is to be implemented in 2008 or 2009, use the above process as an example of how the annual  fee should be calculated.*