Last year to take property out of CF without penalty

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CRYSTAL FALLS — Iron Baraga Conservation District forester Carly DeVet would like to get the word out that this is the last year for property owners to take their property out of Commercial Forest (CF) without penalty.
“If you are looking to transfer from the Commercial Forest (CF) Law to the Qualified Forest Program (QFP) without penalty, the transfer has to be completed prior to Sept. 1,” DeVet said.
The QFP program offers many benefits including reduction of school operating taxes on non-homestead property and prevents uncapping of a property’s taxable value when changing ownership. There are a few requirements for the transfer:
1. The property has to be enrolled prior to and owned by the same owner from Sept. 1st, 2016.
2. 160-acres maximum per owner per township (civil township) can be transferred under this program.
3. If only a portion of CF land is being transferred, the remaining CF land has to be re-evaluated to make sure it still complies with CF, especially feasible public access which the DNR will have to verify.
4. The property going into QFP has to meet all the current requirements of QFP, so the plan has to meet all the same requirements and the property has to pass verification. A new plan may need to be written dependent on the situation.
5. There is a $50 QFP application fee and the CF withdrawal application fee of $200.
6. New property taxes will need to be calculated, because the QFP does not provide as large of a tax break as the CF law does.
“The CF withdrawal penalty will still apply if there is a withdrawal from QFP a few years after the transfer,” said DeVet. “In order to be eligible for QFP the parcel must be 20 acres or more and you must have a forest management plan written by a qualified forester. Building and structures are allowed but not eligible for exemption with QFP.”
For any questions or more information on the topic, contact the Iron Baraga Conservation District forester, Carly DeVet, at 906-236-5108 or fap.iron.baraga@macd.org.