Forest Incentive Programs - Property Taxes for Michigan

Type of Tax

Two programs, the Act to Encourage Private Forestry (AEPF) is a flat tax of $1 per acre combined with a 5% yield tax. The Commercial Forest Act (CFA) is a flat tax of $1.10/acre combined with a 5% yield tax and an initial fee of $1/acre up to $1000.

Law

AEPF is Act 86, P.A> 1917 amended by Act 122, P.A. 1960, Act 284, P.A. 1977 & Act 366, P.A. 1994 and the CFA is Act 451 of 1994 Part 511

Objective

To encourage long-term timber production under CFA and to encourage forest reserves under AEPF

Requirements

A minimum of 40 acres open to the public under CFA. Under AEPF a maximum of 160 acres, at least ½ the land must be improved and devoted to agriculture purposes, no more than ¼ of the total area may be classified at forest reserve with a minimum stocking of 1200 trees per acre.

Applicant must have a management plan prepared by a registered forester under CFA

Under CFA, listed land cannot be used for mineral extraction, grazing, growing Christmas trees, or residences. Newly planted trees must survive 2 growing seasons before they are eligible.

If the use changes there is charge of 5% of the appraised stumpage value under AEPF. Under CFA if land is listed less than 15 years the charges are back taxes and a fine of $1/acre with a minimum of $200 and a maximum of $1000

Program Administration

The State Department of Forestry handles the application and receives intent to harvest notification from landowner under CFA and a licensed forester prepares management plan. The County Tax Assessor examines the property under AEPF.