LANSING?- Recent legislation signed into law provides for the combination of agricultural use property with forest use property on a parcel, providing Michiganders more opportunity to enroll under the state’s Qualified Forest Program.

The change allows mixed-use landowners the ability to enroll their property under the QFP and obtain the 18 mill exemption that otherwise was not available for their land.

The Qualified Forest Program encourages private forest landowners to manage their forestlands in a sustainable fashion based upon a forest management plan, professionally prepared by a qualified foresters registered with the Michigan Department of Agriculture and Rural Development.

In exchange for managing their forestland, the landowner is eligible to receive a tax exemption on their local property tax bill. Since June of 2013, more than 225,000 acres of privately-owned forestland have been enrolled in the QFP in the state of Michigan.

To be eligible for the QFP, forestland parcels must be at least 20 acres, but not larger than 640 acres, per tax unit (typically a township).

Parcels from 20-39.9 acres must be at least 80 percent stocked with forestland capable of producing forestry products. Parcels from 40-640 acres must be at least 50 percent stocked with the same capabilities as listed above. Landowners must also have a forest management plan in place prior to their enrollment in the QFP.

The QFP provides two separate tax benefits for landowners. With a Qualified Forest School Tax Affidavit, enrolled landowners receive a maximum 18 mill reduction of school operating taxes on non-homestead property.

The second benefit, through the Qualified Forest Taxable Value Affidavit, prevents the uncapping of a parcel’s taxable value when a QFP-enrolled parcel changes ownership. This can provide significant tax savings to the new landowner, provided they continue enrollment in the QFP.

As part of their continued enrollment in the QFP, landowners must pay an annual 2 mill equivalent fee. This fee is deposited into the Private Forestland Enhancement Fund, supporting opportunities for conservation, maintenance, and enhancement of a sustainable private timber resource.

To determine how to qualify, please contact the QFP office by email at mdard-qfp@michigan.gov, by phone at (517) 284-5630, or visit the QFP website www.michigan.gov/qfp.

The deadline for submitting an application to participate in the Qualified Forest Program for the 2016 tax year is Sept. 1.