Section 211.7jj[1] - Qualified forest property; exemption; affidavit; form; determination; rescission; appeal; denial or modification; placement on tax roll; corrected tax bill; subject to recapture t
THE GENERAL PROPERTY TAX ACT (EXCERPT)
Act 206 of 1893
211.7jj[1] Qualified forest property; exemption; affidavit; form; determination; rescission; appeal; denial or modification; placement on tax roll; corrected tax bill; subject to recapture tax; report; definitions.
Sec. 7jj.
(1) Except as otherwise limited in this subsection, qualified forest property is exempt from the tax levied by a local school district for school operating purposes to the extent provided under section 1211 of the revised school code, 1976 PA 451, MCL 380.1211, according to the provisions of this section. The amount of qualified forest property in this state that is eligible for the exemption under this section is limited as follows:
(a) In the fiscal year ending September 30, 2008, 300,000 acres.
(b) In the fiscal year ending September 30, 2009, 600,000 acres.
(c) In the fiscal year ending September 30, 2010, 900,000 acres.
(d) In the fiscal year ending September 30, 2011 and each fiscal year thereafter, 1,200,000 acres.
(2) To claim an exemption under subsection (1), the owner of qualified forest property shall file an affidavit claiming the exemption and an approved forest management plan or a certificate provided by a third-party certifying organization with the local tax collecting unit by December 31. An owner may claim an exemption under this section for not more than 320 acres of qualified forest property in each local tax collecting unit. If an exemption is granted under this section for less than 320 acres in a local tax collecting unit, an owner of that property may subsequently claim an exemption for additional property in that local tax collecting unit if that additional property meets the requirements of this section.
(3) The affidavit shall be on a form prescribed by the department of treasury and shall require the person submitting the affidavit to attest that the property for which the exemption is claimed is qualified forest property and will be managed according to the approved forest management plan.
(4) The assessor shall determine if the property is qualified forest property based on a recommendation from the department of natural resources and confirmation that the acreage limitation set forth in subsection (1) has not been reached and if so shall exempt the property from the collection of the tax as provided in subsection (1) until December 31 of the year in which the property is no longer qualified forest property.
(5) Not more than 90 days after all or a portion of the exempted property is no longer qualified forest property, the owner shall rescind the exemption for the applicable portion of the property by filing with the local tax collecting unit a rescission form prescribed by the department of treasury. An owner who fails to file a rescission as required by this subsection is subject to a penalty of $5.00 per day for each separate failure beginning after the 90 days have elapsed, up to a maximum of $1,000.00. This penalty shall be collected under 1941 PA 122, MCL 205.1 to 205.31, and shall be deposited in the general fund of this state.
(6) An owner of property that is qualified forest property on December 31 for which an exemption was not on the tax roll may file an appeal with the July or December board of review under section 53b in the year the exemption was claimed or the immediately succeeding year. An owner of property that is qualified forest property on May 1 for which an exemption was denied by the assessor in the year the affidavit was filed may file an appeal with the July board of review for summer taxes or, if there is not a summer levy of school operating taxes, with the December board of review under section 53b.
(7) If the assessor of the local tax collecting unit believes that the property for which an exemption has been granted is not qualified forest property based on a recommendation from the department of natural resources, the assessor may deny or modify an existing exemption by notifying the owner in writing at the time required for providing a notice under section 24c. A taxpayer may appeal the assessor's determination to the board of review meeting under section 30. A decision of the board of review may be appealed to the residential and small claims division of the Michigan tax tribunal.
(8) If property for which an exemption has been granted under this section is not qualified forest property, the property that had been subject to that exemption shall be immediately placed on the tax roll by the local tax collecting unit if the local tax collecting unit has possession of the tax roll or by the county treasurer if the county has possession of the tax roll as though the exemption had not been granted. A corrected tax bill shall be issued for each tax year being adjusted by the local tax collecting unit if the local tax collecting unit has possession of the tax roll or by the county treasurer if the county has possession of the tax roll.
(9) If property for which an exemption has been granted under this section is converted by a change in use and is no longer qualified forest property, the property is subject to the qualified forest property recapture tax levied under the qualified forest property recapture tax act. An owner of qualified forest property shall inform a prospective buyer of that qualified forest property that the qualified forest property is subject to the recapture tax provided in the qualified forest property recapture tax act, if the qualified forest property is converted by a change in use.
(10) If qualified forest property is exempt under this section, an owner of that qualified forest property shall annually report to the department of natural resources on a form prescribed by the department of natural resources the amount of timber produced on that qualified forest property and whether any buildings or structures have been constructed on the qualified forest property. Beginning in 2008, and every 3 years thereafter, the department of natural resources shall provide to the standing committees of the senate and house of representatives with primary jurisdiction over forestry issues a report that includes all of the following:
(a) The number of acres of qualified forest property in each county.
(b) The amount of timber produced on qualified forest property each year.
(11) As used in this section:
(a) "Approved forest management plan" means 1 of the following:
(i) A forest management plan approved by the department of natural resources. An owner of property may submit a proposed forest management plan to the department of natural resources for approval. The proposed forest management plan shall include a statement signed by the owner that he or she agrees to comply with all terms and conditions contained in the approved forest management plan. The department of natural resources may charge a fee of not more than $200.00 for the consideration of each proposed forest management plan submitted. The department of natural resources shall review and either approve or disapprove each proposed forest management plan submitted. If the department of natural resources disapproves a proposed forest management plan, the department of natural resources shall indicate the changes necessary to qualify the proposed forest management plan for approval on subsequent review. At the request of the owner submitting a proposed forest management plan, the department of natural resources may agree to complete a proposed forest management plan. An owner and the department of natural resources may mutually agree to amend a proposed forest management plan or an approved forest management plan. A forest management plan submitted to the department of natural resources for approval shall not extend beyond a period of 20 years. An owner of property may submit a succeeding proposed forest management plan to the department of natural resources for approval.
(ii) A forest management plan certified by a third-party certifying organization.
(b) "Converted by a change in use" means that term as defined in section 2 of the qualified forest property recapture tax act.
(c) "Forest products" includes, but is not limited to, timber and pulpwood-related products.
(d) "Natural resources professional" and "registered forester" mean those terms as defined in section 51101 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.51101.
(e) "Proposed forest management plan" means a proposed plan for sustainable forest management that includes, but is not limited to, harvesting, planting, and regeneration of forest products on a parcel of property that is prepared by a qualified forester. A proposed forest management plan shall include all of the following:
(i) The name and address of each owner of the property.
(ii) The legal description and parcel identification number of the property or of the parcel on which the property is located.
(iii) A statement of the owner's forest management objectives.
(iv) A map, diagram, or aerial photograph that identified 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.
(v) 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.
(vi) A description of soil conservation practices that may be necessary to control any soil erosion that may result from the forestry practices described pursuant to subparagraph (v).
(vii) A proposed forest management plan shall also include a description of activities that may be undertaken for the management of forest resources other than trees, including wildlife habitat, watersheds, and aesthetic features.
(f) "Qualified forest property" means a parcel of real property that meets all of the following conditions as determined by the department of natural resources:
(i) 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 purchased or taken under condemnation proceedings by a public utility for power 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.
(ii) Is stocked with forest products.
(iii) Has no buildings or structures located on the real property.
(iv) Is subject to an approved forest management plan.
(g) "Qualified forester" means natural resources professional, a registered forester, or a conservation district forester.
(h) "Third-party certifying organization" means an independent third-party organization that assesses and evaluates forest management practices according to the standards of a certification program that measures whether forest management practices are consistent with principles of sustainable forestry. Third-party certifying organization includes, but is not limited to, the forest stewardship council and the sustainable forest initiative.
History: Add. 2006, Act 378, Imd. Eff. Sept. 27, 2006
Compiler's Notes: This added section is compiled at MCL 211.7jj[1] to distinguish it from another Sec. 7jj deriving from 2006 PA 326.
Popular Name: Act 206