Michigan contains 20 million acres of forested land, nearly 62% of which is privately owned. Schoolcraft Conservation District is working to support these landowners in the sustainable management of their forests through the Forestry Assistance Program and Qualified Forest Program.
The Forestry Assistance Program (FAP) is intended to provide outreach and technical assistance to private woodland owners wanting to improve the management of their forests. With the guidance of knowledgeable Conservation District foresters, landowners can better plan, manage, protect, and use their forest resources to meet their goals. All services offered through the FAP are completely free to the public, and landowners with any amount of forest—whether it be a single tree or thousands of acres—are encouraged to reach out if interested.
The contact information for the Forestry Assistance Program forester can be found below.
The contact information for the Forestry Assistance Program forester can be found below.
What is it?
The Qualified Forest Program (QFP) offers owners of 20+ acres of forest land a tax break in exchange for obtaining and following a forest management plan that includes sustainable commercial harvesting, wildlife habitat enhancement, and improvement of other non-forest resources.
Requirements:
Weigh the risks and benefits.
Landowners who enroll in the QFP can greatly benefit from it. Their property taxes are reduced by about 40%, and while they have to pay an annual 2 mill fee to be in the program, they receive a 16 mill reduction in school operating taxes on non-homestead property.
However, there are some questions you should ask yourself before pursuing enrollment. What do you plan to do with your property? Are you going to build on it? Is it possible you would someday subdivide or otherwise develop it? Would you like to divide it among your heirs in your will or leave it to them unencumbered by restrictions/tax penalties?
Depending on your answers to the above, you may need further advice on whether the QFP is suitable for you. If the land you own or plan to buy will remain forested and in your ownership for the foreseeable long-term future, the QFP might be a good fit. If you live on the parcel or contiguous to the parcel of forested land, you are eligible for a homestead exemption and will not derive a financial benefit from participating in the QFP.
Avoid a surprise at closing.
Are you planning to buy a forest property to build a home, hunting camp, or summer retreat? Ask the agent handling the sale if the property is enrolled in the QFP or any other similar program; sellers and sellers’ agents do not always disclose property enrollment, so it’s always encouraged you ask directly. To be sure, you should also inspect the deed to see if a Qualified Forest Affidavit is attached to it.
Be aware of recapture tax.
You could end up owing money, called a recapture tax, if you need to withdraw all or part of your property from the QFP. You may also be fined a substantial amount of money if you do not inform the state about selling enrolled property.
I’m interested in taking the next steps. Now what?
In some cases, the QFP is a great fit for property owners and their objectives. It helps keep a rural economy healthy and maintains forest lands under good management while providing some tax relief for the landowner. The QFP can, however, also have negative financial consequences in some situations.
We want landowners and potential property buyers to understand the implications of program enrollment ahead of time so they can make the best decision for their given situation. If you think the QFP is right for you, please contact our district forester so we can help guide you in the decision-making process.
The Qualified Forest Program (QFP) offers owners of 20+ acres of forest land a tax break in exchange for obtaining and following a forest management plan that includes sustainable commercial harvesting, wildlife habitat enhancement, and improvement of other non-forest resources.
Requirements:
- Parcels must be 20 acres or larger to qualify.
- Parcels between 20 and 39.9 acres must be at least 80% stocked with forest capable of producing wood products.
- Parcels 40 acres or larger must be at least 50% stocked with forest capable of producing wood products.
- A forest management plan must be written by a qualified forester.
- Buildings and structures are allowed but are not eligible for exemption.
- Enrolled landowners must pay an annual fee; public access is not required.
Weigh the risks and benefits.
Landowners who enroll in the QFP can greatly benefit from it. Their property taxes are reduced by about 40%, and while they have to pay an annual 2 mill fee to be in the program, they receive a 16 mill reduction in school operating taxes on non-homestead property.
However, there are some questions you should ask yourself before pursuing enrollment. What do you plan to do with your property? Are you going to build on it? Is it possible you would someday subdivide or otherwise develop it? Would you like to divide it among your heirs in your will or leave it to them unencumbered by restrictions/tax penalties?
Depending on your answers to the above, you may need further advice on whether the QFP is suitable for you. If the land you own or plan to buy will remain forested and in your ownership for the foreseeable long-term future, the QFP might be a good fit. If you live on the parcel or contiguous to the parcel of forested land, you are eligible for a homestead exemption and will not derive a financial benefit from participating in the QFP.
Avoid a surprise at closing.
Are you planning to buy a forest property to build a home, hunting camp, or summer retreat? Ask the agent handling the sale if the property is enrolled in the QFP or any other similar program; sellers and sellers’ agents do not always disclose property enrollment, so it’s always encouraged you ask directly. To be sure, you should also inspect the deed to see if a Qualified Forest Affidavit is attached to it.
Be aware of recapture tax.
You could end up owing money, called a recapture tax, if you need to withdraw all or part of your property from the QFP. You may also be fined a substantial amount of money if you do not inform the state about selling enrolled property.
I’m interested in taking the next steps. Now what?
In some cases, the QFP is a great fit for property owners and their objectives. It helps keep a rural economy healthy and maintains forest lands under good management while providing some tax relief for the landowner. The QFP can, however, also have negative financial consequences in some situations.
We want landowners and potential property buyers to understand the implications of program enrollment ahead of time so they can make the best decision for their given situation. If you think the QFP is right for you, please contact our district forester so we can help guide you in the decision-making process.