Bill Text: MI HB4969 | 2011-2012 | 96th Legislature | Engrossed
Bill Title: Natural resources; forests; tax exemption for certain forest property; provide for. Amends secs. 51102, 51103, 51108 & 51115 of 1994 PA 451 (MCL 324.51102 et seq.) & adds pt. 514. TIE BAR WITH: HB 4970'11
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-12-12 - Placed On Immediate Passage [HB4969 Detail]
Download: Michigan-2011-HB4969-Engrossed.html
HB-4969, As Passed House, February 22, 2012
SUBSTITUTE FOR
HOUSE BILL NO. 4969
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
by amending sections 51102, 51103, 51108, 51113, and 51115 (MCL
324.51102, 324.51103, 324.51108, 324.51113, and 324.51115),
sections 51102 and 51115 as added by 1995 PA 57, sections 51103 and
51113 as amended by 2006 PA 383, and section 51108 as amended by
2008 PA 299, and by adding part 514.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 51102. The department shall establish and maintain
commercial forests and may promulgate and enforce rules as
necessary
to accomplish the intent and purpose of this part. All
expenses
incurred and staff employed to implement this part shall
be
with the approval of the state administrative board.
Sec. 51103. (1) The owner of at least 160 acres, composed of
parcels
of not less than 40 contiguous acres or
a survey unit units
consisting of 1/4 of 1/4 of a section of forestland located within
this state may apply to the department to have that forestland
determined to be a commercial forest under this part. However, the
owner of at least 40 contiguous acres or a survey unit consisting
of 1/4 of 1/4 of a section of forestland located within this state
that was commercial forestland under this part on the effective
date of the 2011 amendments to this section may remain as
commercial forestland as long as the land is otherwise in
compliance with this part. For purposes of this subsection,
"contiguous" means land that touches at any point. Even if portions
of commercial forestland are contiguous only at a point, the
privilege of hunting and fishing as provided in section 51113 shall
not
be denied for any portion of the land. as provided in section
51113.
The existence of a public or
private road, a railroad, or a
utility right-of-way that separates any part of the land does not
make the land noncontiguous.
(2) To be eligible for determination as a commercial forest,
forestland shall be capable of all of the following:
(a) Producing not less than 20 cubic feet per acre per year of
forest growth upon maturity.
(b) Producing tree species that have economic or commercial
value.
(c) Producing a commercial stand of timber within a reasonable
period of time.
(3) An application for classification as commercial forest
shall be submitted on a form prescribed by the department. The
application shall be postmarked or delivered not later than April 1
to be eligible for approval as commercial forest for the following
tax year. In addition to any information that the department may
reasonably require by rule, the applicant shall provide all of the
following to the department:
(a) A nonrefundable application fee in the amount of $1.00 per
acre or fraction of an acre, but not less than $200.00 and not more
than $1,000.00. The department shall remit the application fee to
the state treasurer for deposit into the fund.
(b) A legal description and the amount of acreage considered
for determination as a commercial forest.
(c) A statement certifying that a forest management plan
covering the forestland has been prepared and is in effect.
(d) A statement certifying that the owner of the forestland
owns the timber rights to the timber standing on the forestland.
(4) The department shall prepare and distribute to any person
desiring to apply for classification of forestland as commercial
forest under this part a brochure that lists and explains, in
simple, nontechnical terms, all of the following:
(a) The application, hearing, determination, declassification,
and prosecution process.
(b) The requirements of the forest management plan.
(5) Not later than 3 months after the effective date of the
2006
2011 amendatory act that amended this section, the
department
shall notify each county and township and all owners of forestland
that is classified as commercial forest under this part, who are on
record with the department, of the amendments to this part that
were
enacted in 2006.2011.
(6)
If an applicant is unable to secure the services of a
registered
forester or a natural resources professional to prepare
a
forest management plan, the department upon request shall prepare
the
forest management plan on behalf of the owner of the forestland
and
charge the owner a forest management plan fee not to exceed the
actual
cost of preparing the forest management plan.
(6) (7)
After an owner certifies to the
department that a
forest management plan has been prepared and is in effect, a
violation of that forest management plan is a violation of this
part.
(7) Forest management plans that have been submitted to the
department or the local tax collecting unit are exempt from
disclosure under the freedom of information act, 1976 PA 442, MCL
15.231 to 15.246.
Sec. 51108. (1) An owner of a commercial forest may withdraw
his or her land, in whole or in part, from the operation of this
part upon application to the department and payment of the
withdrawal application fee and penalty, as provided in this
section.
(2) Except as otherwise provided by this section, upon
application to the department to withdraw commercial forestland
from the operation of this part, the applicant shall forward to the
department a withdrawal application fee in the amount of $1.00 per
acre with a minimum withdrawal application fee of $200.00 per
application and a maximum withdrawal application fee of $1,000.00
per application.
(3) Except as otherwise provided in this section, an
application to withdraw commercial forestland from the operation of
this part shall be granted upon the payment to the township
treasurer in which the commercial forestland is located of a
penalty.
For applications to withdraw commercial forestland filed
on
or after September 27, 2007 in which the withdrawal penalty has
not
been paid before the effective date of the amendatory act that
added
subdivision (d), the The withdrawal penalty shall be
calculated in the following manner:
(a) Multiply the number of acres of commercial forestland
withdrawn from the operation of this part by 1 of the following:
(i) For 2007, 1/2 of the valuation per acre for the county in
which the forestland is located.
(ii) Beginning in 2008, and for each subsequent year, the
number described in subparagraph (i) adjusted annually by the
inflation rate for each year after 2007.
(b) Multiply the product of the calculation in subdivision (a)
by the average millage rate levied by all townships, excluding
villages, in the county in which the property is located.
(c) Multiply the product of the calculation in subdivision (b)
by the number of years, to a maximum of 7 years, in which the
property withdrawn from the operation of this part has been
designated as commercial forestland under this part.
(d) Multiply the product of the calculation in subdivision (c)
by the following:
(i) 0.2, if the commercial forestland is located in Luce
county.
(ii) 0.3, if the commercial forestland is located in Grand
Traverse, Manistee, Ottawa, or Wexford county.
(iii) 0.4, if the commercial forestland is located in
Charlevoix, Chippewa, Emmet, Gladwin, Leelanau, Midland, Oscoda, or
Tuscola county.
(iv) 0.5, if the commercial forestland is located in Cheboygan,
Delta, Mackinac, Oceana, Otsego, or Schoolcraft county.
(v) 0.6, if the commercial forestland is located in Alcona,
Alger, Allegan, Alpena, Arenac, Barry, Bay, Benzie, Berrien,
Branch, Calhoun, Cass, Clare, Clinton, Crawford, Dickinson, Eaton,
Genesee, Gogebic, Gratiot, Hillsdale, Houghton, Huron, Ingham,
Ionia, Iosco, Iron, Isabella, Jackson, Kalamazoo, Kalkaska, Kent,
Lapeer, Lenawee, Livingston, Macomb, Marquette, Mecosta, Monroe,
Montcalm, Montmorency, Muskegon, Newaygo, Oakland, Ogemaw, Osceola,
Presque Isle, Roscommon, Saginaw, St. Clair, St. Joseph, Sanilac,
Shiawassee, Van Buren, Washtenaw, or Wayne county.
(vi) 0.7, if the commercial forestland is located in Antrim,
Baraga, Mason, or Menominee county.
(vii) 0.8, if the commercial forestland is located in Keweenaw,
Lake, Missaukee, or Ontonagon county.
(4) The department shall publish all of the following on its
website:
(a) The calculation described in subsection (3)(a)(i) for each
county.
(b) The adjusted value and the inflation rate described in
subsection (3)(a)(ii) for each county.
(c) The average millage rate described in subsection (3)(b)
for each county.
(5) Until 1 year after the effective date of the 2011
amendatory act that amended this section, the owner of commercial
forestland is not subject to a withdrawal penalty if all of the
following occur:
(a) The owner of commercial forestland withdraws his or her
land from the operation of this part as provided in this section.
(b) The former commercial forestland is placed on the
assessment roll in the local tax collecting unit in which the
former commercial forestland is located.
(c) The owner of the former commercial forestland claims and
is granted an exemption for that land from the tax levied by a
local school district for school operating purposes under section
7jj of the general property tax act, 1893 PA 206, MCL 211.7jj[1].
The owner shall submit to the department a copy of the recorded
receipt of tax exemption on a form provided by the department by
December 31 of the year in which the land is withdrawn from this
part.
(6) If a transfer of title causes commercial forestland to no
longer meet the minimum acreage requirements of this part or the
access requirements described in section 51113(1), the commercial
forestland shall be withdrawn from this part. However, the owner of
commercial forestland is not subject to a withdrawal penalty if the
owner complies with all of the conditions described in subsection
(5)(a) to (c).
(7) (5)
An application to withdraw
commercial forestland from
the operation of this part that meets 1 or more of the following
requirements shall be granted without payment of the withdrawal
application fee or penalty under this section:
(a) Commercial forestland that has been donated to a public
body for public use prior to withdrawal.
(b) Commercial forestland that has been exchanged for property
belonging to a public body if the property received is designated
as a commercial forest as determined by the department.
(c) Commercial forestland that has been condemned for public
use.
(8) An application to withdraw commercial forestland from the
operation of this part that meets all of the following requirements
shall be granted without payment of the withdrawal application fee
or penalty under this section:
(a) Evidence is submitted to the department that the land met
the legal requirements to be exempt from ad valorem property tax on
tax day for the tax year in which the list application was
submitted and approved and that the land would have met the legal
requirements to be exempt from ad valorem property tax on tax day
for each year that the land was subject to the operation of this
part, if the land had not been subject to the operation of this
part. As used in this subsection, "tax day" means that term as
provided in section 2 of the general property tax act, 1893 PA 206,
MCL 211.2.
(b) The application to withdraw is submitted to the department
by the same landowner that owned the land on tax day for the tax
year in which the list application was submitted and that submitted
the application for determination under section 51103.
(c) Reimbursement is made by the landowner to the state
treasurer for the specific tax that was paid by the state treasurer
to the county treasurer, as provided in section 51106(1), for each
tax year the land was commercial forestland.
(9) (6)
The department shall remit the
withdrawal application
fee paid pursuant to subsection (2) to the state treasurer for
deposit into the fund. The penalty received by the township
treasurer under subsection (3) shall be distributed by the township
treasurer in the same proportions to the various funds as the ad
valorem general property tax is allocated in the township, except
as provided by section 51109(2).
(10) (7)
If an application to withdraw commercial
forestland
is granted, the department shall immediately notify the applicant,
the supervisor of the township, and the register of deeds of the
county in which the lands are located of the action and shall file
with those officials a list of the lands withdrawn.
(11) (8)
As used in this section:
(a) "Inflation rate" means the lesser of 1.05 or the inflation
rate as defined in section 34d of the general property tax act,
1893 PA 206, MCL 211.34d.
(b) "Valuation" means the market value as determined by the
state tax commission.
Sec. 51113. (1) Except as provided in this section, the owner
of a commercial forest shall not use that land in a manner that is
prejudicial to its development as a commercial forest, use the land
for agricultural, mineral extraction except as provided in this
section, grazing, industrial, developed recreational, residential,
resort, commercial, or developmental purposes, or deny the general
public the privilege of hunting and fishing on commercial
forestland unless the land is closed to hunting or fishing, or
both, by order of the department or by an act of the legislature.
If the department determines that the owner of commercial forest
has taken an action that has the effect of denying or inhibiting
access to the commercial forest for public hunting and fishing,
except as specifically provided in this part, the department may
require withdrawal of the land as commercial forest under this part
unless the owner corrects that action and allows access to the
commercial forest for public hunting and fishing. If, on the
effective date of the 2011 amendments to this section, there is not
access to commercial forestland and the lack of access is not the
consequence of an action taken by the owner of commercial
forestland, the commercial forest may remain as commercial
forestland if all of the following apply:
(a) There is not a transfer of title for the parcel of
commercial forestland, other than as a part of a larger sale of
10,000 or more acres.
(b) The landowner has not taken an action following
acquisition of the commercial forestland that has the effect of
denying or inhibiting access to the commercial forestland to the
public for hunting and fishing.
(c) The commercial forestland is otherwise in compliance with
this part.
(2) Exploration for minerals shall be permitted on land listed
under this part. Except as provided in subsections (3) and (4),
before the removal of any commercial mineral deposits, the owner
shall withdraw the portion of the commercial forestland directly
affected by the removal pursuant to section 51108. The withdrawal
of commercial forestland due to mineral removal as provided in this
section and section 51108 shall not cause the remaining portion of
the commercial forestland to be withdrawn due to insufficient
acreage of the remaining commercial forestland.
(3) Upon application to and approval by the department, sand
and gravel may be removed from the commercial forest without
affecting the land's status as a commercial forest. The department
shall approve an application to remove sand and gravel deposits
only if the removal site is not greater than 5 acres, excluding
access to the removal site, and the sand and gravel are to be
utilized by 1 or more of the following:
(a) The owner of a commercial forest for personal use if the
owner of the commercial forest is also the owner of the sand and
gravel deposits.
(b) The owner of the sand and gravel deposits for his or her
personal use or for sale to the owner of the commercial forest for
personal use, if the owner of the commercial forest is not also the
owner of the sand and gravel deposits.
(c)
This For sale to this state, a local unit of government, a
federal government agency, or a county road commission, for
governmental use, or a contractor or other agent undertaking
construction, maintenance, or a project for 1 of these governmental
entities.
(4) Upon application to and approval by the department,
deposits of oil and gas may be removed from the commercial forest
without affecting the land's status as a commercial forest.
Sec. 51115. (1) The transfer of title of forestland subject to
this
part shall does not affect that forestland's status as a
commercial forest if the forestland continues to meet all of the
eligibility requirements under this part. If the purchaser desires
to withdraw his or her forestland from this part, the purchaser
shall withdraw that forestland pursuant to section 51108. If the
forestland's eligibility to be a commercial forest is affected by
the transfer of title, the department shall determine which
forestlands may remain under this part and which forestlands must
be withdrawn or declassified.
(2) If the forestland's eligibility is affected by the
transfer of title because the forestland does not meet the minimum
acreage required by this part and the owner of the forestland does
not meet the requirements of section 51108(6), then the forestland
shall be withdrawn pursuant to section 51108(3).
(3) (2)
A document that transfers any
interest in commercial
forestlands shall state on the face of the document that "this
property is subject to part 511, the commercial forest part of the
natural resources and environmental protection act". Failure to
comply with this subsection does not affect the status of the land
as commercial forestland.
(4) (3)
Not later than 30 days after the county equalization
office receives notice of a transfer of title or the transfer of
any interest in a land contract concerning the commercial
forestland,
the owner county
equalization office shall notify the
department in writing of the transfer or ownership change.
PART 514 QUALIFIED FOREST PROPERTIES
Sec. 51401. As used in this part:
(a) "Commercial harvest" means a harvest conducted by a
commercial logger, with a minimum of 5 cords of wood per acre.
(b) "Converted by a change in use" means that term as defined
in the qualified forest property recapture tax act.
(c) "Department" means the department of natural resources.
(d) "Energy crop" means short rotation woody crops such as
hybrid poplar and willow, which may be eligible for designation as
qualified forest property if they are established on nonstocked
forestland with less than 10% forest cover or previously cleared
land, and the woody crops are planted at 4,000 to 6,000 stems or
cuttings per acre.
(e) "Forest management plan" means the plan described in
section 51414 for sustainable forest management.
(f) "Forest products" includes, but is not limited to, timber,
pulpwood-related products, and energy crops.
(g) "Fund" means the qualified forest fund created in section
51418.
(h) "General property tax act" means the general property tax
act, 1893 PA 206, MCL 211.1 to 211.155.
(i) "Harvest records" means a report of timber products
harvest that is completed at time of harvest and submitted to the
department and includes, but is not limited to, volume of timber
harvested.
(j) "Owner" means all legal owners of the qualified forest
property.
(k) "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.
(l) "Qualified forest property" means a parcel of real property
that meets all of the conditions as described in section 51416.
(m) "Qualified forest property recapture tax act" means the
qualified forest property recapture tax act, 2006 PA 379, MCL
211.1031 to 211.1036.
(n) "Qualified forester" means a registered forester, a
forester certified by the society of American foresters, a forest
stewardship plan writer, or other forester qualified by the state
forester and posted on the department's internet website.
(o) "Tax exemption" means a tax exemption for qualified forest
property as provided for in this part and the general property tax
act.
Sec. 51402. An owner of productive forest that meets the
qualifications under this part and submits the information required
under section 51403 may apply to have his or her property
designated as a qualified forest property and receive an exemption
from property taxes as allowed under the general property tax act.
Sec. 51403. (1) An owner of productive forest property that
wishes to have the property designated as qualified forest property
shall submit an application to the local tax collecting unit on a
form provided by the department. The owner shall provide a copy of
the application to the department. The submittal to the department
shall be accompanied by a program fee of $200.00. Program fees
collected under this section shall be forwarded to the state
treasurer for deposit into the fund. The application shall contain
all of the following:
(a) A signed statement from a qualified forester who prepared
a forest management plan for the forest property, on a form created
by the department, indicating that the plan meets the requirements
of this part, that the property meets the requirements of this
part, and that any building on the property meets the requirement
of section 51417.
(b) A signed statement from the owner of the property who is
applying for the tax exemption indicating that he or she
understands the requirements of this part, agrees to meet the
requirements of this part, agrees to follow his or her forest
management plan, and is the owner of the property.
(c) The legal description and parcel identification number of
the property or of the parcel on which the property is located.
(d) If there is a building on the property, a map that shows
the location and size of the building and a listing of the
amenities described in section 51417.
(e) The total amount of acreage being applied for a tax
exemption.
(2) The local tax collecting unit shall designate the property
as qualified forest property and shall apply the tax exemption to
the property if the application contains the information required
in subsection (1). The local tax collecting unit is not required to
apply a tax exemption if the owner of the property is different
from the applicant who submitted the application or the parcel
number or description does not match the parcel number or
description on the local tax collecting unit's records.
(3) When the owner has received the tax exemption from the
local tax collecting unit, the owner shall file a receipt of the
tax exemption with the appropriate register of deeds on a form
provided by the department and send a copy of the recorded form to
the local tax collecting unit and to the department.
Sec. 51404. For the 10-year enrollment period of the current
tax exemption, the owner shall retain the current management plan,
the signed statement from the qualified forester under section
51403(1)(a), audits of the forest management plan, harvest records,
recorded copy of receipt of the tax exemption, and a map that shows
the location and size of any buildings and a listing of the
amenities as described in section 51417. The owner shall make the
documents available to the department and to the local tax
collecting unit upon request.
Sec. 51405. (1) In order to continue to receive a tax
exemption, the owner shall submit to the department and the local
tax collecting unit a reassessment application 10 years after the
date of enrollment. The submittal to the department shall be
accompanied by a program fee of $200.00. Program fees collected
under this section shall be forwarded to the state treasurer for
deposit into the fund. The application shall be on a form provided
by the department and shall contain a signed statement from a
qualified forester that an audit has been conducted of the forest
management plan and that the property is being managed according to
the plan, that the plan is current, that the property continues to
meet the requirements of this part, that any building on the
property meets the requirement of section 51417, and that harvest
reports have been submitted as appropriate.
(2) If an owner fails to submit a reassessment application 10
years after the date of enrollment, the local tax collecting unit
shall notify the owner, in writing, that the owner must submit a
reassessment application within 60 days of the date of the notice
or the tax exemption will expire. If the local tax collecting unit
does not receive a reassessment application within this 60-day
period, the local tax collecting unit shall remove the property tax
exemption from the property according to the requirements of the
qualified forest property recapture tax act and shall notify the
state treasurer that the owner is liable for the recapture tax
under the qualified forest property recapture tax act.
Sec. 51406. The owner shall have an audit of the
implementation of his or her forest management plan every 10 years
after the date of enrollment to determine if management activities
are being conducted according to the plan and that the plan and the
property still meet the requirements of this part. The audit shall
be conducted by a qualified forester.
Sec. 51407. (1) Within 45 days of the audit under section
51406, the qualified forester shall report on a form provided by
the department to the local taxing unit, the department, and the
department of treasury if the audit reveals any of the following:
(a) The property is not being managed according to the forest
management plan including harvesting and thinning as directed by
the plan.
(b) The forest management plan was not produced as required by
this part in order to receive a tax exemption.
(c) The forest management plan is not current as required by
this part.
(d) An audit was not conducted in the time frames required by
this part.
(e) A building exists on the property in violation of
eligibility requirements under this part.
(f) All or a portion of the property has been converted by a
change in use so that it does not meet the requirements of this
part.
(g) A harvest occurred without a harvest record being
submitted to the department.
(h) A copy of the receipt of tax exemption was not filed with
the register of deeds or a recorded copy was not provided to the
local tax collecting unit and the department.
(2) The qualified forester shall provide the owner 30 days to
provide documentation of actions taken to resolve any issues of
noncompliance before reporting any violations as required in
subsection (1).
(3) If a violation under this section is reported to the local
tax collecting unit, the local tax collecting unit shall rescind
the tax exemption on the property and notify the department of
treasury and the department.
(4) The state treasurer shall levy the recapture tax and
penalty, if applicable, on the property owner as described in the
qualified forest property recapture tax act and the general
property tax act.
Sec. 51408. (1) The department may at any time conduct an
audit of any qualified forest property receiving a tax exemption
and shall be provided access to the property for this purpose by
the owner upon request. The department shall notify the owner at
least 45 days prior to conducting the audit. The owner shall submit
the required documents within 30 days of receipt of the request of
the department. A copy of the completed audit shall be returned to
the owner who shall retain the audit in his or her records.
(2) Within 45 days of the audit, the department shall report
to the local tax collecting unit, the department, and the
department of treasury if the audit reveals any of the violations
described in section 51407(1).
(3) The department shall provide the owner 30 days to provide
documentation of actions taken to resolve any issues of
noncompliance before reporting any violations as required in
subsection (2).
(4) If a violation as described in section 51407(1) is
reported to the taxing unit, the taxing unit shall rescind the tax
exemption on the property and notify the department of treasury and
the department.
(5) If the tax exemption is rescinded under subsection (4),
the state treasurer shall levy the recapture tax and penalty, if
applicable, on the property owner as described in the qualified
forest property recapture tax act and the general property tax act.
(6) In performing audits of properties, the department shall
take into consideration whether the property has been third-party
certified or is enrolled in the tree farm program pursuant to AFF
current standards of sustainability for forest certification
through the American tree farm system.
Sec. 51409. If a building is placed on the property after a
tax exemption is provided, the owner shall immediately notify the
local tax collecting unit on a form provided by the local tax
collecting unit and created by the department. Included in the
notification shall be a copy of a map that shows the location and
size of the building and a listing of the amenities as described in
section 51417. The local tax collecting unit shall determine if the
building is allowed under section 51417 and shall make the
necessary changes to the assessment of the property, which changes
shall be effective for the immediately succeeding tax year.
Sec. 51410. (1) If all or a portion of the property is
converted by a change in use, the owner shall immediately notify
the local tax collecting unit, the department, and the department
of treasury on a form created by the department.
(2) Upon receipt of notice under subsection (1), the local tax
collecting unit shall immediately rescind the tax exemption for the
property and shall place the property on the tax roll for the
immediately succeeding tax year.
(3) Upon receipt of notice under subsection (1), the state
treasurer shall immediately begin collection of the recapture tax
and penalty, if applicable, as provided for in the qualified forest
property recapture tax act and the general property tax act.
Sec. 51411. The owner shall report any harvest conducted on
the property to the department and to the local tax collecting unit
on a form provided by the department. The harvest report shall
contain the volume of timber harvested from the property, the name
and contact information of the person conducting the harvest, the
number of acres on which the harvest occurred, and the date of the
harvest. The report shall be submitted to the department within 30
days after the harvest was completed. The owner shall retain all
harvest records during the 10-year enrollment period of the current
tax exemption.
Sec. 51412. (1) An owner may claim a tax exemption from
property taxes for not more than 640 acres of qualified forest
property in each local tax collecting unit.
(2) The local tax collecting unit shall exempt qualified
forest property from the collection of the tax as provided in the
general property tax act until the property is no longer qualified
forest property.
Sec. 51413. The department shall post on its internet website
each calendar year the annual volume of timber harvested on
qualified forest properties. The report shall be based upon the
harvest reports received from owners.
Sec. 51414. (1) The owner shall have a current forest
management plan prepared by a qualified forester. A forest
management plan shall contain all of the following:
(a) The name, address, and dated signature of each owner of
the property.
(b) The expiration date of the plan.
(c) The legal description and parcel identification number of
the property or of the parcel on which the property is located.
(d) A statement of the owner's forest management objectives,
which must include commercial timber production.
(e) A map, diagram, or aerial photograph that identifies both
forested and unforested areas of the property, using conventional
map symbols indicating the species, size, and density of vegetation
and other major features of the property.
(f) A narrative description of each management unit that
includes all of the following:
(i) Acreage, cover type, stand density, measured by basal area
or trees per acre, and age of main stand.
(ii) A measure of the site quality and productivity that shows
that the stand is capable of growing 20 cubic feet per acre per
year, such as site index or volume growth per acre per year.
(iii) A description of the silvicultural practices such as
shelterwood, seed tree, or selection employed to achieve the unit
objective and promote successful regeneration.
(g) A description of the forestry practices, including
harvesting, thinning, and reforestation, that will be undertaken,
specifying the approximate period of time before each is completed.
(h) A description of activities that may be undertaken for the
management of forest resources other than trees, including wildlife
habitat, watersheds, and aesthetic features.
(i) A summary table or spreadsheet of all stands listing their
prescribed practices, approximate treatment schedule, and dates of
accomplishment.
(j) A description of soil conservation practices that may be
necessary to control any soil erosion that may result from the
practices described pursuant to subdivisions (g), (h), and (i).
(k) A harvest schedule that includes a commercial harvest
within 30 years of receipt of the tax exemption. However, for an
owner transferring commercial forestland under part 511 to
qualified forest property under this part, if a qualified forester
determines that more than 30 years is needed for a viable
commercial harvest, the harvest schedule may extend beyond 30
years, but shall include a commercial harvest within 40 years of
receipt of the tax exemption.
(2) A forest management plan shall include a statement signed
by a qualified forester and notarized by a notary public that the
plan was prepared by the qualified forester.
(3) Once a commercial harvest has occurred, the forest
management plan for qualified forest property shall be updated to
manage the property for commercial timber harvests commensurate
with the forest cover on the property.
(4) If qualified forest property is negatively impacted by
weather, disease, or other act of God, a revised forest management
plan shall be written in accordance with this part. However, a
revised forest management plan prepared under this subsection may
extend the harvest date beyond the requirement in subsection (1)(k)
by an amount of time that is approved by the department.
Sec. 51415. In order for an owner to receive a tax exemption,
the owner shall agree to all of the following:
(a) Conducting of forest management practices as prescribed by
the forest management plan according to the time frames contained
in the plan.
(b) Subject to section 51414(1)(k) or (4), conducting of a
forest thinning or harvest as prescribed by the forest management
plan within 30 years after the receipt of the tax exemption.
Subsequent forest management plans shall provide for commercial
harvests commensurate with the forest cover on the property.
(c) An audit by a qualified forester every 10 years as
provided for in section 51406.
(d) Allowing the department to enter his or her property to
conduct an audit as provided for in section 51408.
(e) Submitting and retaining necessary forest management
plans, reports, audits, and signed statements as described in
section 51404.
Sec. 51416. In order for a property to be considered for a tax
exemption, the property shall meet all of the following
requirements:
(a) Except as provided in subdivision (d), is not less than 10
contiguous acres in size, of which not less than 80% is productive
forest capable of producing forest products. Contiguity is not
broken by a road, a right-of-way, or property purchased or taken
under condemnation proceedings by a public utility for power
transmission lines if the 2 parcels separated by sale or
condemnation were a single parcel prior to the sale or
condemnation.
(b) Has no buildings located on the real property except as
provided in section 51417.
(c) Is subject to a forest management plan as described in
section 51414.
(d) If the property has a building as provided in section
51417, the property shall be not less than 20 acres in size.
Sec. 51417. (1) Except as provided in this section, a building
developed for human residence is not allowed on qualified forest
property. Any building containing 5 or more of the following
characteristics is considered developed for human residence and the
parcel of property on which the building is situated, including the
septic system, is not eligible for a tax exemption:
(a) The building is 800 square feet or more in total area
using exterior dimensions of living space including each level, but
excluding porches, decks, or uninsulated screen porches.
(b) The building contains indoor plumbing including water and
sewer piped to either a municipal or septic system.
(c) The building has a full or partial basement.
(d) The building has electrical service by connection to the
lines of a power company.
(e) The building has central heating or cooling, including
electric, wood, biofuels, or gas furnace or other heater with a
circulation system.
(f) The building is insulated using products designed for that
purpose.
(g) The building has telephone service linked to a landline.
(h) The building is attached to or has a separate garage, not
including buildings for vehicles used primarily for work or
recreation on the property.
(2) Any building containing fewer than 5 characteristics
listed in subsection (1) is eligible to be included on the
property. However, the building and 1 acre of property shall not
receive the tax exemption.
Sec. 51418. (1) The qualified forest fund is created within
the state treasury.
(2) The state treasurer may receive money or other assets from
any source for deposit into the fund. The state treasurer shall
direct the investment of the fund. The state treasurer shall credit
to the fund interest and earnings from fund investments.
(3) Money in the fund at the close of the fiscal year shall
remain in the fund and shall not lapse to the general fund.
(4) The department shall be the administrator of the fund for
auditing purposes.
(5) The department shall expend money from the fund, upon
appropriation, only to administer this part including to support
data management and forest property audits under this part.
Sec. 51419. (1) Within 90 days after the effective date of
this part, the department shall provide written notice of the 2011
amendments to this part to all owners of forest property receiving
a tax exemption under section 7jj of the general property tax act,
1893 PA 206, MCL 211.7jj[1], on the effective date of this part who
are on record with the department. An owner of forest property
receiving a tax exemption under section 7jj of the general property
tax act, 1893 PA 206, MCL 211.7jj[1], on the effective date of this
part shall be required to meet the harvesting requirements of this
part within 30 years from the effective date of this part and,
within 180 days after the effective date of this part, shall
provide to the department and the local taxing unit a signed
statement from a qualified forester as described in section
51403(1)(a).
(2) If an owner of property receiving a tax exemption as
qualified forest property under section 7jj of the general property
tax act, 1893 PA 206, MCL 211.7jj[1], on the effective date of this
part does not wish to conduct a commercial harvest, or the property
is not capable of production of a commercial harvest as required by
this section, or if the requirements of this part cause material
burden to the landowner, the landowner may petition to remove the
tax exemption from the property within 180 days after the effective
date of this part. The petition shall be on a form created by the
department and shall be sent to the department and the local tax
collecting unit. Upon receipt of that petition, the local tax
collecting unit shall rescind the tax exemption and place the
property on the tax roll. The property owner shall not be charged
the recapture tax and penalty as described in the qualified forest
property recapture tax act and the general property tax act.
Sec. 51420. (1) A landowner that acquires property that is
receiving a tax exemption shall do either of the following within
60 days of transfer of title:
(a) Certify to the department and the local taxing unit that
the landowner is assuming the previous landowner's forest
management plan and will manage the land according to that plan.
(b) Provide to the department and the local taxing unit the
signed statements described in section 51403(1)(a) and (b).
(2) If a landowner fails to comply with the requirements of
subsection (1), the local tax collecting unit shall rescind the tax
exemption and place the property on the tax roll. The property
owner shall be charged the recapture tax and penalty as described
in the qualified forest property recapture tax act and the general
property tax act.
(3) Transfer of title does not change the requirement that a
harvest be conducted within 30 years of the date that the property
initially received the tax exemption.
Sec. 51421. (1) A person claiming an exemption under this part
shall not do any of the following:
(a) Make a false or fraudulent affidavit claiming an exemption
or a false statement on an affidavit claiming a tax exemption.
(b) Aid, abet, or assist another in an attempt to wrongfully
obtain a tax exemption.
(c) Make or permit to be made for himself or herself or for
any other person a false affidavit claiming a tax exemption or a
false statement on an affidavit claiming a tax exemption, either in
whole or in part.
(d) Fail to rescind a tax exemption after the property subject
to that exemption is no longer eligible to receive the tax
exemption.
(2) A person who violates a provision of subsection (1) with
the intent to wrongfully obtain or attempt to obtain a tax
exemption under this part is guilty of a misdemeanor punishable by
imprisonment for not more than 1 year and punishable by a fine of
not more than $5,000.00 or public service of not more than 1,500
hours, or both.
(3) In addition to the penalties provided in subsection (2), a
person who knowingly swears to or verifies an affidavit claiming a
tax exemption under this part, or an affidavit claiming a tax
exemption under this part that contains a false or fraudulent
statement, with the intent to aid, abet, or assist in defrauding
this state or a political subdivision of this state, is guilty of
perjury, a misdemeanor punishable by imprisonment for not more than
1 year and punishable by a fine of not more than $5,000.00 or
public service of not more than 1,500 hours, or both.
(4) A person who does not violate a provision of subsection
(1), but who knowingly violates any other provision of this part
with the intent to defraud this state or a political subdivision of
this state, is guilty of a misdemeanor punishable by a fine of not
more than $1,000.00 or public service of not more than 500 hours,
or both.
(5) Except as otherwise provided in this section, a person who
violates this part is responsible for a state civil infraction and
may be ordered to pay a civil fine of not more than $500.00.
(6) The attorney general and the prosecuting attorney of each
county of this state have concurrent power to enforce this act.
Sec. 51422. A court may allow the department to recover
reasonable costs and attorney fees incurred in a prosecution
resulting in a conviction for a violation of this part.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 96th Legislature are
enacted into law:
(a) House Bill No. 4302.
(b) House Bill No. 4970.
