User:HashSlingingSlasher24/sandbox

Wisconsin Managed Forest Law (MFL)

Summary The Managed Forest Law (MFL) is a tax incentive program that encourages private forest landowners in Wisconsin to manage their forests sustainably. MFL is the only forest tax law that is open to enrollment, and was enacted in 1985 to replace the Woodland Tax Law and the Forest Crop Law. MFL incorporates timber harvesting, wildlife management, water quality and recreation to maintain a healthy and productive forest in a 25 or 50-year sustainable forest management plan. Landowners can enroll their land as ‘open’ or ‘closed’ to public recreation. In exchange for harvesting timber according to the state’s guidelines for sustainable forest management, the landowner pays reduced property taxes. There are other programs that are similar to MFL (such as the Qualified Forest Program in Michigan and the Forest Stewardship Programs in Minnesota and Illinois that offer tax breaks, exemptions from school millage, and cost-share programs).

History MFL was enacted in 1985 to replace the Woodland Tax Law and the Forest Crop Law. The state closed these programs and enrollment moved to the Managed Forest Law to boost landowner benefits and simplify forest tax law. The state closed these programs and enrollment moved to the Managed Forest Law to boost landowner benefits and simplify forest tax law. Wisconsin Dept. of Natural Resources; Management (https://dnr.wi.gov/wnrmag/html/supps/2002/feb02/ftl.htm). Retrieved April 2nd, 2018. .

Forest Crop Law The Forest Crop Law was a tax break enacted in 1927, to encourage sustainable forestry on private land. The program allowed landowners to enroll until it was closed on January 1, 1986 and the last contracts will expire on December 31, 2035. The program allowed landowners to enroll until it was closed on January 1, 1986 and the last contracts will expire on December 31, 2035. Wisconsin's Managed Forest Law: A Program Summary (http://dnr.wi.gov/files/pdf/pubs/fr/fr0295.pdf). Retrieved April 2nd, 2018.

1985 Woodland Tax Law The Woodland Tax Law was another tax break enacted in 1954, to encourage sustainable forestry on private land. Landowners could enroll up to January 1986 and the last contract expired December 31, 2000. The Woodland Tax Law was another tax break enacted in 1954, to encourage sustainable forestry on private land. Landowners could enroll up to January 1986 and the last contract expired December 31, 2000. Wisconsin's Managed Forest Law: A Program Summary (http://dnr.wi.gov/files/pdf/pubs/fr/fr0295.pdf). Retrieved April 2nd, 2018.

Enrollment Eligibility In order to enroll in Wisconsin’s MFL, a number of eligibility requirements must be met. It should be noted that the following requirements are as of 2018, and changes are frequently made to the MFL program by the state’s legislature. The first is that there must no less than 20 contiguous acres under the same ownership. The first is that there must no less than 20 contiguous acres under the same ownership. http://dnr.wi.gov/files/pdf/pubs/fr/fr0295.pdf. Retrieved April 2nd 2018. Assuming that the minimum acreage requirement is met, at least 80% of it must be land covered in forest that is capable of growing timber suitable for commercial products. Assuming that the minimum acreage requirement is met, at least 80% of it must be land covered in forest that is capable of growing timber suitable for commercial products. http://dnr.wi.gov/files/pdf/pubs/fr/fr0295.pdf. Retrieved April 2nd 2018. Unsuitable land includes sand dunes, abandoned farm fields, standing water, bogs, swamps, rock outcroppings, utility or railroad easements, and roadways. Before any land can be enrolled it must not be tax-delinquent. Unsuitable land includes sand dunes, abandoned farm fields, standing water, bogs, swamps, rock outcroppings, utility or railroad easements, and roadways. Before any land can be enrolled it must not be tax-delinquent. http://dnr.wi.gov/files/pdf/pubs/fr/fr0295.pdf. Retrieved April 2nd 2018. Potential enrollees must have their current year property taxes paid by August 15th [1]http://dnr.wi.gov/files/pdf/pubs/fr/fr0295.pdf. Retrieved April 2nd 2018. . If one wishes to enroll in the “open” program the land must be accessible to the public by foot, either through neighboring land that has public access, or by a public road. If one wishes to enroll in the “open” program the land must be accessible to the public by foot, either through neighboring land that has public access, or by a public road. http://dnr.wi.gov/files/pdf/pubs/fr/fr0295.pdf. Retrieved April 2nd 2018. . Lands that are within a recorded subdivision are ineligible for enrollment- so too are lands that have a building or improvements. Lands that are within a recorded subdivision are ineligible for enrollment- so too are lands that have a building or improvements. http://dnr.wi.gov/files/pdf/pubs/fr/fr0295.pdf. Retrieved April 2nd 2018. . This last caveat was effective on January 1, 2017 and only affects new enrollees and those wishing to renew their enrollment. This last caveat was effective on January 1, 2017 and only affects new enrollees and those wishing to renew their enrollment. http://dnr.wi.gov/files/pdf/pubs/fr/fr0295.pdf. Retrieved April 2nd 2018. . The state considers a building to be a permanent structure that has a roof which is supported by walls, posts, or columns [2]. Similarly, an improvement is considered to be any accessory building (such as a shed), or structure that is on the property for its benefit. Similarly, an improvement is considered to be any accessory building (such as a shed), or structure that is on the property for its benefit. http://dnr.wi.gov/files/pdf/pubs/fr/fr0295.pdf. Retrieved April 2nd 2018. . It does not matter whether the structure is inhabitable or not. Landscaping is considered to be an improvement as well. Items not considered to be an improvement are hunting blinds, bridges, culverts, fences, public or private roads, and structures required for sound forestry. Items not considered to be an improvement are hunting blinds, bridges, culverts, fences, public or private roads, and structures required for sound forestry.≤http://dnr.wi.gov/files/pdf/pubs/fr/fr0295.pdf. Retrieved April 2nd 2018. .

MFL Application Process Any landowner wishing to enroll his/her land in the MFL program must work with a Certified Plan Writer (CPW) to complete the process. Any landowner wishing to enroll his/her land in the MFL program must work with a Certified Plan Writer (CPW) to complete the process. Wisconsin’s Managed Forest Law: A Program Summary (http://dnr.wi.gov/files/pdf/pubs/fr/fr0295.pdf). Retrieved April 2nd, 2018. CPW’s are private consulting foresters certified by the Wisconsin DNR to write forest management plans for MFL. CPW’s are private consulting foresters certified by the Wisconsin DNR to write forest management plans for MFL. Wisconsin’s Managed Forest Law: A Program Summary (http://dnr.wi.gov/files/pdf/pubs/fr/fr0295.pdf). Retrieved April 2nd, 2018. The CPW submits the application, which goes to a Tax Law Forestry Specialist that is responsible for the county in which the land is located. The CPW submits the application, which goes to a Tax Law Forestry Specialist that is responsible for the county in which the land is located. Wisconsin’s Managed Forest Law: A Program Summary (http://dnr.wi.gov/files/pdf/pubs/fr/fr0295.pdf). Retrieved April 2nd, 2018.

Program design (as of 2017) If the ownership of the land that is enrolled in the MFL program changes, the new owners have to file the Managed Forest Law Ownership Change Request (form 2450-159) within 30 days after the change [4]. Failure to turn in this form would result in withdrawal from the MFL program plus a withdrawal tax and a $300 fee. Failure to turn in this form would result in withdrawal from the MFL program plus a withdrawal tax and a $300 fee. Wisconsin’s Managed Forest Law: A Program Summary (http://dnr.wi.gov/files/pdf/pubs/fr/fr0295.pdf). Retrieved April 2nd, 2018. . If the new owners choose not to continue the MFL program on the land, they may request to withdraw from MFL program.

Land enrolled under the MFL program may be voluntarily withdrawn at any time. To withdraw land from the MFL program, the landowner must submit a withdrawal form Land enrolled under the MFL program may be voluntarily withdrawn at any time. To withdraw land from the MFL program, the landowner must submit a withdrawal form. Declaration of Withdrawal (Form 2450-140): (https://dnr.wi.gov/files/PDF/forms/2400/2450-140.pdf), Request for Estimate of Withdrawal Tax for Managed Forest Law (MFL): (https://www.revenue.wi.gov/DORForms/pr-296f.pdf), Declaration of Withdrawal – Exempt Forest Tax Law (Form 2450-162): (https://dnr.wi.gov/topic/ForestLandowners/documents/2450162.pdf). Retrieved April 2nd, 2018. under the instructions. under the instructions. Declaration of Withdrawal Managed Forest Law (Form 2450-140) Instructions: https://dnr.wi.gov/topic/ForestLandowners/documents/Withdrawal_Instructions.pdf. Retrieved April 2nd, 2018. Under voluntary withdraw from the MFL program, a withdrawal tax plus a $300 withdrawal fee will be assessed. Under voluntary withdraw from the MFL program, a withdrawal tax plus a $300 withdrawal fee will be assessed. Wisconsin’s Managed Forest Law: A Program Summary (http://dnr.wi.gov/files/pdf/pubs/fr/fr0295.pdf). Retrieved April 2nd, 2018. . Requests received by WI DNR before December 1st would become effective the following January 1st. Requests received by WI DNR before December 1st would become effective the following January 1st. Wisconsin’s Managed Forest Law: A Program Summary (http://dnr.wi.gov/files/pdf/pubs/fr/fr0295.pdf). Retrieved April 2nd, 2018. . How the land was entered into the MFL program determines the method to calculate the withdrawal tax. How the land was entered into the MFL program determines the method to calculate the withdrawal tax. Wisconsin’s Managed Forest Law: A Program Summary (http://dnr.wi.gov/files/pdf/pubs/fr/fr0295.pdf). Retrieved April 2nd, 2018. , and landowners can learn from a Tax Law Forestry Specialist. and landowners can learn from a Tax Law Forestry Specialist. DNR Tax law forestry specialist to consult with type of order: (https://dnr.wi.gov/topic/ForestLandowners/taxlawspecialists.html). Retrieved April 2nd, 2018. which method applies to their land. The most common method multiplies the net tax rate by the previous year’s assessed land value. The most common method multiplies the net tax rate by the previous year’s assessed land value. Wisconsin’s Managed Forest Law: A Program Summary (http://dnr.wi.gov/files/pdf/pubs/fr/fr0295.pdf). Retrieved April 2nd, 2018. . This amount is then multiplied by the number of years the land was enrolled in the MFL program or by 10, whichever is less. This amount is then multiplied by the number of years the land was enrolled in the MFL program or by 10, whichever is less. Wisconsin’s Managed Forest Law: A Program Summary (http://dnr.wi.gov/files/pdf/pubs/fr/fr0295.pdf). Retrieved April 2nd, 2018. . That is, the maximum of withdraw tax is capped at a 10 years’ rate. MFL lands sold to a governmental agency may be exempt from a withdrawal tax and fee. That is, the maximum of withdraw tax is capped at a 10 years’ rate. MFL lands sold to a governmental agency may be exempt from a withdrawal tax and fee. Wisconsin’s Managed Forest Law: A Program Summary (http://dnr.wi.gov/files/pdf/pubs/fr/fr0295.pdf). Retrieved April 2nd, 2018. .

Forest Certification Landowners who enroll in MFL are automatically included in two sustainable forestry certification programs: American Tree Farm System and Forest Stewardship Council. Landowners who enroll in MFL are automatically included in two sustainable forestry certification programs: American Tree Farm System and Forest Stewardship Council. Managed Forest Law group forest certification: (http://dnr.wi.gov/topic/timbersales/mfl.html). Retrieved April 2nd, 2018. Forest certification is an independent process, and it ensures that woodland management meets standards for sustainable forestry. The sustainability is rated based on the ecological, economic and recreational components of forests and surrounding communities. Landowners could have membership in the MFL Certified Group, which is free and entirely voluntary. The sustainability is rated based on the ecological, economic and recreational components of forests and surrounding communities. Landowners could have membership in the MFL Certified Group, which is free and entirely voluntary. Managed Forest Land and Forest Certification Fact Sheet (http://dnr.wi.gov/topic/timbersales/documents/ManagedForestLandAndForestCertificationFactSheet.pdf). Retrieved April 2nd, 2018. After joining, individual members may elect to leave the certified group without dropping out of MFL. Landowners would need to follow the management plan and other requirements in order to maintain qualification for MFL and have the benefits like lower tax rate. Landowners would need to follow the management plan and other requirements in order to maintain qualification for MFL and have the benefits like lower tax rate. Managed Forest Law group forest certification: (http://dnr.wi.gov/topic/timbersales/mfl.html), Managed Forest Land and Forest Certification Fact Sheet: (http://dnr.wi.gov/topic/timbersales/documents/ManagedForestLandAndForestCertificationFactSheet.pdf). Retrieved April 2nd, 2018. 'Bold text'