Managed forest land being converted to agricultural land

Under current law, an owner is exempt from paying the withdrawal tax and the withdrawal fee if the owner withdraws the MFL to transfer the land for a public road or a utility right-of-way or to the federal or state government or a local governmental unit for a conservation purpose such as a park or public forest. This bill expands this exemption to include withdrawals to convert MFL to agricultural land if the land has been MFL for at least five years. The bill incorporates the definition of "agriculture land" that exists under current law for property tax assessment purposes.

"Agricultural land" is land that is devoted primarily to agricultural use, as defined by rule by the Department of Revenue. "Agricultural use," in turn, is defined in this rule to include land that is enrolled in certain federal agriculture programs and land that is subject to the stream bank protection program administered by DNR. Under the bill, MFL that is converted to agricultural land is subject to the same public recreational access requirements until the date that the MFL order would have expired (original expiration date).

The bill provides that if the owner stops using the land for agricultural use before the original expiration date, the owner must pay the withdrawal tax and the withdrawal fee that would have been payable at the time of the conversion, and the land is no longer subject to the public recreational access requirements.