Michigan (Summary)
Last Updated: March 2020
Tax Type: Exemption or a flat tax
Description: Eligible forest is exempt from ad valorem tax. In lieu of the property tax, an annual specific tax (flat) is levied on eligible forests under the Commercial Forest Program. Enrolled forest land under the Qualified Forest Program is exempt from school operating taxes.
Objective: To protect the environment and natural resources
Principal Forest Property Tax Incentive Programs:
1. Program legal-common name: Commercial Forest program
Law: MCL 324.51105
Program Requirements
Min/Max Acreage: 40 acres
Min. Stocking Growth: N/A
Forest Management Plan: Must be written by a registered forester or natural resources professional.
Duration of Enrollment: N/A
Penalties for Use Change: A withdrawal application fee ($1.00 per acre fee with a minimum of $200 and a maximum of $1,000 per application) and a withdrawal penalty calculated based on the acreage withdrawn, millage rate in the county, and # of years land has been in Commercial Forest (maximum 7 years).
Program Administration
State: Michigan Department of Natural Resources Forest Resources Division handles application and receives notification from landowners of harvest
County Tax Assessor and Commissioner N/A
University: N/A
Landowners: Make application, have a forest management plan that meets program requirements, notify the DNR prior to harvest, and ensure public access for hunting, trapping, and fishing
2. Program legal-common name: Qualified Forest program
Law MCL 211.7jj[1]
Program Requirements
Min/Max Acreage: 20 acres
Min. Stocking Growth: N/A
Forest Management Plan: Must be written by a qualified forester.
Duration of Enrollment: N/A
Penalties for Use Change: A recapture tax is imposed.
Program Administration
State: The Michigan Department of Agriculture & Rural Development (MDARD) administer the program.
County Tax Assessor and Commissioner: N/A
University: N/A
Landowners: Make application, have a forest management plan that meets program requirements, and notify the MDARD prior to harvest
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