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INCOME TAXES
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
Rayonier is a REIT under the Internal Revenue Code and therefore generally does not pay U.S. federal or state income tax. As of December 31, 2024, Rayonier owns a 98.7% interest in the Operating Partnership and conducts substantially all of its timberland operations through the Operating Partnership. The taxable income or loss generated by the Operating Partnership is passed through and reported to its unitholders (including the Company) on a Schedule K-1 for inclusion in each unitholder’s income tax return.
Certain operations, including log trading and certain real estate activities, such as the entitlement, development and sale of HBU properties, are conducted through our TRS. The TRS subsidiaries are subject to U.S. federal and state corporate income tax. The New Zealand timber operations are conducted by the New Zealand subsidiary, which is subject to corporate-level tax at 28% in New Zealand and is treated as a partnership for U.S. income tax purposes.
PROVISION FOR INCOME TAXES FROM CONTINUING OPERATIONS
The provision for income taxes for each of the three years ended December 31 follows:
 
202420232022
Current
U.S. federal
— — ($2,797)
State
(200)(292)(371)
Foreign
(6,482)(4,441)(2,694)
(6,682)(4,733)(5,862)
Deferred
U.S. federal
(2,260)8,386 2,302 
State
1,211 1,187 1,693 
Foreign
(1,590)(388)(3,583)
(2,639)9,185 412 
Changes in valuation allowance
2,271 (9,574)(3,939)
Total
($7,050)($5,122)($9,389)
    A reconciliation of the U.S. federal statutory income tax rate to the actual income tax rate for each of the three years ended December 31 follows:
 202420232022
U.S. federal statutory income tax rate($78,967)(21.0)%($38,560)(21.0)%($27,758)(21.0)%
U.S. and foreign REIT income84,262 22.4 47,616 25.9 29,732 22.5 
Matariki Group and Rayonier New Zealand Ltd(6,556)(1.7)(3,681)(2.0)(5,038)(3.8)
Cellulosic Biofuel Producer tax credit(10,814)(2.9)— — — — 
Change in valuation allowance2,271 0.6 (9,574)(5.2)(3,939)(3.0)
REIT Built-in Gain— — — — (2,516)(1.9)
Foreign income tax withholding(1,517)(0.4)(1,148)(0.6)(1,239)(0.9)
State Income Tax, Net of Federal Benefit833 0.2 1,322 0.7 1,424 1.1 
Bainbridge Landing JV, NCI122 — — — 2,496 1.8 
Other3,316 0.9 (1,097)(0.6)(2,551)(1.9)
Income tax expense as reported for net income($7,050)(1.9)%($5,122)(2.8)%($9,389)(7.1)%
The Company’s effective tax rate is below the 21% U.S. statutory rate primarily due to tax benefits associated with being a REIT.
DEFERRED TAXES
Deferred income taxes result from differences between the timing of recognizing revenues and expenses for financial book purposes versus income tax purposes. The nature of the temporary differences and the resulting net deferred tax asset/liability for the two years ended December 31 follows:
 20242023
Gross deferred tax assets:
Pension, postretirement and other employee benefits$149 $565 
New Zealand subsidiary19,868 19,717 
Cellulosic Biofuel Producer Credit tax credit carry forwards— 13,688 
Capitalized real estate costs3,570 4,564 
U.S. TRS net operating loss37,284 30,061 
Other8,166 5,073 
Total gross deferred tax assets69,037 73,668 
Less: Valuation allowance(48,147)(50,418)
Total deferred tax assets after valuation allowance$20,890 $23,250 
Gross deferred tax liabilities:
New Zealand subsidiary(79,766)(89,899)
Other(1,105)(3,616)
Total gross deferred tax liabilities(80,871)(93,515)
Net deferred tax liability reported as noncurrent($59,981)($70,265)
Net operating loss (“NOL”) and tax credit carryforwards as of the two years ended December 31 follows: 
Tax Effected BalanceExpiration
2024
U.S. Federal NOL Carryforwards- Post TCJA (a)$32,451 None
U.S State NOL Carryforwards (b)4,833 Various
Cellulosic Biofuel Producer Credit— 2024
2023
U.S. Federal NOL Carryforwards- Post TCJA (a)$25,948 None
U.S State NOL Carryforwards (b)4,112 Various
Cellulosic Biofuel Producer Credit13,688 2024
(a)The Tax Cuts and Jobs Act (TCJA) was signed into law on December 22, 2017. The TCJA lifted the 20-year federal NOL Carryforward period. Net operating losses generated after December 31, 2017 have an indefinite carryforward period.
(b)The U.S. state NOL is made up of several jurisdictions that expire in various future years. No state NOL is set to expire before December 31, 2033.

We record a valuation allowance to reduce the carrying amounts of deferred tax assets if it is more likely than not that such deferred tax assets will not be realized. Since 2015, we have had a 100% valuation allowance against the U.S. taxable REIT subsidiary's deferred tax assets, net of deferred tax liabilities. During 2024, the net deferred tax assets decreased by $2.3 million. As a result, we recorded a change in the valuation allowance of $2.3 million related to the U.S. TRS's deferred tax assets, net of liabilities.
TAX STATUTES
The following table provides detail of the tax years that remain open to examination by the IRS and other significant taxing jurisdictions:
Taxing JurisdictionOpen Tax Years
U.S. Internal Revenue Service2021 - 2023
New Zealand Inland Revenue2019 - 2023

TAX CHARACTERISTICS OF DIVIDEND DISTRIBUTIONS
The taxable nature of the dividend distributions paid for each of the three years ended December 31 follows:
 
202420232022
Total dividends/distributions paid per common share/unit (a)
$2.94 $1.34 $1.125 
Tax characteristics:
Capital gain100 %100 %100 %
(a)The year ended December 31, 2024 includes an additional dividend of $1.80 per common share, consisting of a combination of cash and the Company’s common shares. The dividend was paid January 30, 2025, to shareholders of record on December 12, 2024. This additional dividend will be considered a 2024 distribution for federal income tax purposes. The year ended December 31, 2023 includes an additional cash dividend of $0.20 per common share. The dividend was paid January 12, 2024, to shareholders of record on December 29, 2023. This additional cash dividend was considered a 2023 distribution for federal income tax purposes.