Dear VF/VC readers:
I’m happy to report some good progress at the State Capitol related to recommendations that emerged from last September’s Family Forest Conference in pursuit of our “Next Million Acre” goal. A unique coalition has formed to speak with one voice on a variety of policy proposals related to forest lands, including the MN Forestry Association, the MN Deer Hunters Association, MN Forest Industries and the MN Seasonal and Recreational Property Owners Coalition among others. Their good efforts are paying off!
A tax bill has been passed and signed that will give many forest owners with stewardship plans the chance to receive a marked reduction in their property taxes. To qualify, forest owners must have at least 10 acres and no more than 1920 acres. The law allows these forest owners to apply to their County Assessor to have their land assessed at 0.65% rather than 1%. They must not be enrolled in the Sustainable Forest Incentive Act, but have a forest management plan that meets SFIA standards. There is also good news for those who ARE enrolled in the SFIA, as the minimum annual payment has been raised to $7.00 per acre, an increase from the previous floor of $1.50 per acre. These are positive steps forward and evidence that the momentum built during last session was indeed a harbinger of change to come.
But wait, there’s more! Bills have been introduced in the House and Senate to make additional improvements on the forest property tax laws. They seek to remove the requirement for landowners to apply annually, to lower the class rate a step further to 0.55 %, as well as a variety of other things. If you would like more information about legislative developments, please contact Bruce ZumBahlen of the MN Forestry Association at zoomerbruce@aol.com.
Congratulations to everyone concerned about these issues, and thanks to those of you who have advocated change. You can be sure that we’ll update you again as we receive word of further developments from the Capitol.
In the meantime, may you embrace the muddy spring in Minnesota’s woods.
June 3, 2008 at 9:55 am
[...] As reported earlier by Matt Rezac on this blog site, the new law allows forest owners to apply to their county assessor to have their lands assessed at 0.65% rather than 1%. The management plan must meet the Sustainable Forest Incentive Act (SFIA) standards but the land can not enrolled under the SFIA (to avoid the perception of double dipping). The Tax Bill also changed the SFIA law. With the strong support of Senate Tax Committee Chair Tom Bakk, the SFIA minimum annual payment was raised from $1.50 per acre to $7.00 per acre. [...]