May 21, 2009, Introduced by Senators GILBERT, CROPSEY, KUIPERS, JELINEK, VAN WOERKOM, JANSEN and PAPPAGEORGE and referred to the Committee on Agriculture and Bioeconomy.
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending section 7jj (MCL 211.7jj[1]), as added by 2006 PA 378.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
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 agriculture and confirmation that the acreage
limitation
set forth in subsection (1) has not been reached. and if
so
If the property is qualified forest property, the assessor 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 agriculture, 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 agriculture on a form
prescribed
by the department of natural resources agriculture 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 agriculture 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 agriculture. An owner of property may submit a
proposed
forest management plan to the department of natural
resources
agriculture 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
agriculture 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 agriculture shall
review and either approve or disapprove each proposed forest
management
plan submitted. If the department of natural resources
agriculture disapproves a proposed forest management plan, the
department
of natural resources agriculture
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 agriculture may agree to complete a proposed
forest
management plan. An owner and the department of natural
resources
agriculture 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
agriculture 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 agriculture
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
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.
(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 agriculture:
(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.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No. 603
of the 95th Legislature is enacted into law.