Fre= quently asked questions regarding Commercial Forest and Qualified Forest<= /st1:PlaceType> Property tax programs

Question: My land is enrolled in= the CF program but I heard there is also a qualified forest property tax exemption. What does this mean to me as a CF landowner? Do I have to= do anything to keep my land in the CF program? Do I have to re-apply to keep my land in the CF program? Can my land be both CF and QFP? If I withdraw my land from CF is there any payment involved? <= /span>

Answer: If your land is currently listed in the CF program and you want it to remain in the CF program do nothing. The CF program is a voluntary program and as long as you are in compliance with the requireme= nts of the CF law and program your listing continues indefinitely. You may, however, apply to withdraw from the program at any time. There will be a withdrawal application fee and withdrawal penalty payment due if you deci= de to withdraw your land from CF.

CF and QFP are two separate property tax incentive programs. Your land cannot have both a CF and QFP tax designation. The CF law was amended in Septemb= er 2006 to allow a one-time withdrawal without penalty if your land is fi= rst approved for QFP (a withdrawal application fee will be due). A QFP de= signation must be approved prior to your applying to withdraw land from the CF prog= ram without penalty. The time frame for applying to withdraw from the CF prog= ram without penalty is up to September 26, 2007.

Question: I bought some land alr= eady listed in the CF program. Can the land stay listed in this program? =

Answer: Land listed in the CF program can be transferred to a= new owner and remain in the program as long as the new owner complies with all requirements of the CF law and program. The CF law requires an owner noti= fy the Department of Natural Resources of an ownership change in writing wit= hin 30 days of a title transfer. The new owner will be required to submit a c= opy of the deed or land contract as recorded with the register of deeds in the county where the property is located evidencing the legal title transfer,= a copy of their forest management plan (plans are generally not transferable from one owner to another) and will also be required to certify the forest management plan exists and is in effect.

Question: What are the tax benef= its of the CF and QFP exemption to forest landowners?

Answer: CF land is taxed at $1.20 per acre annually through December 2011. On January 1, 2012, and every 5 years thereafter, the CF t= ax will increase 5 cents per acre annually. Additionally, CF land that also = has an approved sustainable conservation easement is taxed at 15 cents less p= er acre.

QFP is exempt from the tax levied by a local school district for school opera= ting purposes to the extent provided under section 1211 of the revised school code.

Question: Who qualifies for the = QFP tax exemption?

Answer: Private landowners who own between 20 acres and 320 contiguous acres in a taxing jurisdiction, where= the land is capable of producing at least 20 cubic feet of wood volume per ye= ar, may qualify for QFP. Landowners must have an approved forest management p= lan and agree to manage land according to the plan.

Question: Who qualifies for the = CF tax exemption?

Answer: The owner of at least 40 contiguous acres or a survey unit of 1/4 of 1/4 of a section of forestland may qualify for CF. Forestl= and shall be capable of producing not less than 20 cubic feet per acre per ye= ar of forest growth upon maturity, producing tree species that have economic= or commercial value, and producing a commercial stand of timber within a reasonable period of time. Landowners must have an approved forest manage= ment plan and agree to manage land according to the approved plan. =

Question: What constitutes QFP l= and?

Answer: 2006 PA 378 says QFP land is land that meets all of t= he following conditions:

Is not less than 20 contiguous acres in size, of which not less than 80% is productive forest capable of producing wood products. Contiguity is not broken by a road, a right-of-way, or property pur= chased or taken under condemnation proceedings by a public utility for pow= er transmission lines if the 2 parcels separated by the purchased or condemned property were a single parcel prior to the sale or condemnation. As used in this subparagraph, "productive forest" means real property capable of growing not less than 20 cubic feet of wood per acre per year. However, if property has been considered productive forest, an act of God that negatively affects that property shall not result in that property not being considered productive forest.
Is stocked with forest products.
Has no buildings or structures located on the real property.
Is subject to an appro= ved forest management plan.

Question: I see that a forest management plan is required for both QFP and CF. What is a forest management plan and how do I get a plan written?

Answer: Information included in a complete forest management = plan will include unbiased information about the trees and vegetation currently growing on the land, potential forest stands that could be grown on the l= and, soils present and their qualities, wildlife habitat quality, any threaten= ed and endangered species, any invasive species or insect/diseases noticed, = and management recommendations that will help the landowner meet their object= ives for owning the land and keeping the resource sustainable. For the purpose= s of qualifying for CF or QFP, forest management plans must meet specific criteria. Landowners should be sure to check with their plan writer to ve= rify that the writer is familiar with the criteria required for these tax exempt programs. Plans must be written by professional foreste= rs or certified natural resource professionals. There is usually a fee to ha= ve a plan written. The Department of Natural Resources maintains a list of certified Forest Stewardship Plan writers. There is cost share money for having a Forest Stewardship plan written - see http://www.michigandnr.com/fspplanwriter/. The Tree Farm organization also provides plan writers. See http://www.michigantreefarmsystem.org/ about this organization. Other plan writers may be found by contacting ot= her forestry organizations.

Question: How do I get the QFP t= ax exemption for my land? Are there forms to complete?

Answer: Landowners wishing to be considered for the QFP exemp= tion must submit a "Claim for Qualified Forest Property Tax Exemption&quo= t; Michigan Department of Treasury Form 4449 "Affidavit". The Affidavit, two copies of the forest management plan (two copies of any third party certification, if applicab= le) and a plan review fee must be submitted prior to November 1, in order to = be considered for the tax exemption in the following tax year. The local tax collecting unit assessor will determine if the land is qualified forest property based upon a recommendation from the Department of Natural Resou= rces that the landowner has an approved forest management plan and after the assessor determines the acreage limitation has not been exceeded.

Question: How do I get the CF tax designation for my land? Are there forms to complete?

Answer: Applications to list land in the CF program are avail= able on the Department of Natural Resources webpage at http://www.michigan.gov/dnr/0,1607,7-153-30301_3050= 5-34016--,00.html. Applications must be postmarked or hand-delivered no later than April 1, = to be eligible for consideration as commercial forest in the following tax y= ear. An application fee, copy of the forest management plan and evidence of la= nd ownership must be submitted with the application.

Landowners with already listed CF land who also have a sustainable conservation ease= ment may apply for an additional property tax reduction. Applications must be postmarked or hand-delivered no later than April 1, to be eligible for consideration as commercial forest with a sustainable conservation easeme= nt for the following tax year. An application fee and a copy of the conserva= tion easement must be submitted with the application.

Question: Are there requirements= for public access to CF or QFP lands?

Answer: The CF program requires the land be open to the public for hunting and fishing (foot access only). Additionally, CF land that al= so has an approved sustainable conservation easement must be open to the pub= lic for non-motorized recreational use.

Land with a QFP exemption is not required to be open to the public.

Question: Can oil and or gas be extracted from land in these programs?

Answer: The statute creating the QFP exemption is silent as to whether oil and gas may be removed from land with this exemption.

Download “Claim for Qualified Forest Property Tax Exemption from Some School Operating Taxes” at the following address – http://www.michigan.gov/documents/taxes/4449_fillable_189513_7.pdf .

Fill out form and print copies.