The Forest Crop Law which was
passed in 1927 closed enrollment on January 1, 1986. It allows landowners to pay taxes on
timber only after harvesting, or when the contract is terminated. It has promoted and
encouraged long-term investments as well as the proper management of woodlands.
Current enrollment is about 4,000 landowners
with about 1.4 million acres. Renewal is not allowed. A landowner may enter his or her
land into Managed Forest Law. Early conversion into Managed Forest Law is also available
through January 1,1998 for a non-refundable application fee of $100. Thousands have
applied.
pay 10 cents annual tax per acre if enrolled before 1972 (20 cents for
special class), 83 cents per acre if enrolled after 1972
open land to the public for hunting and fishing purposes
apply sound forest management practices
file notice of intent to cut before harvesting
pay 10 percent severance tax based on stumpage value following harvest
report accurate volumes
apply post-harvest treatment
permit inspections
permit public hunting and fishing
pay termination tax of 10 percent of assessed stumpage value of the
standing timber should the owner decline to enter MFL at the expiration of contract
low regular property tax; (statewide tax rates range from $3 to $30 per
acre with an average rate of $7.16 per acre according to a general property tax assessment
done in 1991)
deferred tax until after harvest
protection against property tax hike
predictable property tax, thus allowing planning for payment schedule