LANSING, Mich. — The Michigan Department of Agriculture and Rural Development (MDARD) is taking applications for its Qualified Forest Program (QFP).

 

The QFP can provide tax benefits to landowners in exchange for their participation in environmentally friendly and “sustainable” forestry practices. “There really has been a strong interest by landowners across Michigan in participating in our forestland programs,” said Jamie Clover Adams, MDARD director.

 

“Receiving educational and technical assistance allows them to work with the private sector to put together a forest management plan. They’re actively managing that land and improving harvests, improving the quality of that land as well as environmental stewardship.”

 

“It’s a revenue stream for them,” added state Sen. Darwin Booher, a Republican from the northern Lower Peninsula. “It’s a management of their wildlife and their natural resources. If you can do this correctly, and select at the proper times, there’s no question you’re going to receive money.”

 

According to MDARD, the QFP provides a property tax exemption on privately owned forestland that is considered to be Qualified Forest Property. In exchange for the exemption, landowners must

manage their forests in a sustainable fashion for commercial harvest, wildlife habitat enhancement and improvement of other non-forest resources. Management of the forest must be consistent with a professionally developed forest management plan.

 

Parcels must be 20 acres or larger to qualify; parcels from 20-39 acres must be at least 80 percent stocked with forest capable of producing wood products; parcels from 40-640 acres must be at least 50 percent thus stocked. Parcels larger than 640 acres per taxing unit are not eligible. A forest management plan is required for enrolled parcels.

 However, in the event a landowner cannot meet the stocking requirements, Public Act 107 of 2015 provides another option (i.e., the combination of agricultural use property with productive forest property), allowing mixed-use landowners to enroll their land in the QFP. These landowners also must have a forest management plan.

  

The program provides three potential tax benefits for enrolled landowners. It includes a maximum 18-mill reduction of school operating taxes on non-homestead property under the Qualified Forest School Tax Affidavit. Second, the Taxable Value Affidavit prevents the uncapping of a property’s taxable value when a parcel currently enrolled under the qualified forest program changes ownership.

 

Third, recent legislation provides for a Transitional Qualified Forest (TQF) option, which allows for landowners currently enrolled in the Michigan Department of Natural Resources’ commercial forest program to transfer their property into the QFP under waiver of penalty; and provides for an incremental increase in tax liability for the following five years. Ownership and acreage restrictions still apply, and the TQF option is in place only until Sept. 1, 2021.

 

As part of their continued enrollment in the QFP, landowners pay a 2-mill equivalent fee annually. The fee is deposited in the Private Forestland Enhancement Fund, which supports opportunities for future timber supplies, forestry-related employment opportunities, and the conservation, maintenance and enhancement of a sustainable private timber resource. Allowing public access is not a requirement on land enrolled in the QFP.

 

The department recommends that anyone interested in participating hire a forester to develop a forest management plan. A list of foresters eligible to write plans for the QFP is available on the website www.michigan.gov/qfp Follow the instructions and submit the following for a complete application: a forest management plan; a QFP application; a QFP practice schedule; a copy of a recent property tax bill for each parcel in the application; a copy of either the most recent deed or land contract for each parcel in the application, or both; and a $50 application fee. Applications must be submitted by Sept. 1.