SB 590

Under current law, the Department of Natural Resources (DNR) administers

the managed forest land (MFL) program and a similar program called the forest

croplands program. The MFL program exempts an owner of land that is designated

MFL from payment of municipal property taxes on the land in exchange for a lower

payment per acre. In exchange, the owner must comply with certain forestry

practices and must allow the public on the land under certain circumstances unless

the landowner elects to pay an extra amount per acre to keep a limited number of

acres closed. In addition, an owner of MFL must pay a withdrawal tax when the

owner withdraws the land from the program before the order designating the land

as MFL expires. Orders are for 25 or 50 years. This bill makes various changes to

the MFL program, including the following:

1. The words "applicant" and "application" are substituted for "petitioner" and

"petition" in the subchapter related to the MFL program. This change is

nonsubstantive.

2. The dates before which DNR must act on applications under the MFL

program are changed, and the deadline for owners to file applications to renew MFL

orders is changed.

3. A forestry management plan for the MFL must accompany the application,

and the requirement that DNR prepare the plan upon the request of the applying

landowner is eliminated. Under the bill, DNR must prepare the plan only if DNR

determines that the applicant is unable to have a proposed management plan

prepared by a certified independent plan writer. DNR must promulgate rules

establishing the criteria for when DNR will prepare the plan.

4. The Department of Revenue, upon the request of an MFL landowner, with

the assistance of DNR, must prepare an estimate of the withdrawal tax that would

be due if the MFL is withdrawn.

5. The requirement that the stumpage value used to determine the amount of

yield taxes and withdrawal taxes under the MFL program be established by rule is

eliminated.

6. The bill clarifies that when MFL is transferred to another owner, the person

purchasing or otherwise receiving the land pays the transfer fee.

7. Under the forest croplands program, facsimile signatures are allowed and

documents are exempted from register of deeds authentication requirements. These

provisions exist for the MFL program under current law.

8. The penalties and procedures that apply to persons who file false reports also

apply for assessing the yield tax to persons who fail to file cutting reports.

9. An owner selling MFL must disclose to prospective buyers that the land is

designated as such under an MFL order.