On Thursday evening (2/18/2016), the Assembly approved SB 434. What that means is the bill has passed both houses and now awaits Governor Walker’s signature before becoming law.
If signed into law, this bill would rescind the leasing ban and once again allow landowners to receive income from use of their land for recreational purposes.
This bill also:
- Eliminates the special yield tax imposed when timber was harvested
- Makes it clear that the MFL is now a contract, rather than an “agreement”
- Allows withdrawal of 1 to 5 acres for construction or sale
- Provides allowances for lands damaged by natural disasters
- Reduces the withdrawal penalty to a maximum of 10 years
- Allows closure of 320 acres in any one municipality
- Returns a substantial amount of the closed acreage fee to local municipalities
More detail on these changes will be forthcoming but we wanted to let landowners know that WAFO has made great progress working with Representative Jeff Mursau and Senator Tom Tiffany who took the lead on getting these bills passed. Please join us in thanking them for their leadership in getting these important changes made for Wisconsin’s woodland owners.
While these law changes will benefit MFL landowners, there still remains a great deal of work to be done. If the law gets signed, there will remain a myriad of details to be worked out. Certainly the DNR will develop guidance and regulations on how the new law will be implemented. We need to continue to be vigilant during this process.
All landowners who own woodland need to be a part of our effort. Please sign up to join our organization. It’s free. Just provide us with your email address and information on where you live and own land. That way we can keep you informed.
Finally, please consider making a donation. We have a small budget and operate with the help of dedicated volunteers but there are still bills needed to be paid. The work is not done. By supporting us, we’ll be able to monitor and lobby for more changes in the future, whether it be to keep future regulations reasonable or to make taxes on forested lands more comparable with those paid on other agricultural lands.
10 Responses to “MFL Bill Passes the Legislature and Now Awaits the Governor’s Signature!”
Ronald Schroepfer
The governor signed 50 + bills into law last week was this one not in that package?
Kristie Kasbohm
Unfortunately, it was not in that package. We’ll be sure to post on our website as soon as we hear anything new!
Kristin
Is there any timeline on when we can expect Mfl sb 434 to be signed by Govenor Walker?
Kristie Kasbohm
We haven’t heard when Governor Walker may sign the bill. Hopefully he will.
Doug Reimer
Does this bill work the same for industrial paper lands? This would be giving them the tax break and ability to lease their lands for hunting? Thus basically closing it down and ending our hunting heritage.
Kristie Kasbohm
The “industrial lands” are no longer owned by paper mills but rather by TIMO’s and REIT’s. The new law would allow any one owner to close no more than 320 acres in any one municipality. Most of these large properties would likely not change ownership or close their lands which would result in a higher tax rate. But there have been many of these lands which have been fragmented and sold as smaller parcels. That is the most likely threat regardless of the law change.
Steven Thaler
Will land owned by LLCs and trusts have the same rights such as the ability to close 320 acres as those titled in private names, or will they be somehow be looked at differently and allowed the closure of fewer acres? If we can close more acres will they be taxed at the pre-2005 rate if the contract was signed pre-2005?
I had a CRP contract expire this year and they would not let me renew because it is in the MFL program. I am appealing their ruling. There really is no advantage for me to be in the MFL because the taxes are lower on the CRP land. The problem was it would have cost me I figured over $100,000 to get out of MFL because it was in a 50 year contract since 1994. Then if I took it out there was no guarantee they would renew the CRP and the land would be subject to the high recreational taxes.
I am very happy to see the organization of WAFO. We really need them as a voice for forest owners and encourage everyone who owns forest land or anyone who is concerned about the forests or forest industry of Wisconsin to support them.
Richard Wedepohl
Steve, it certainly is unfortunate that CRP land may not be able to be renewed. Certainly today no one would ever think about enrolling land in CRP given they’d see their property taxes go up from an agricultural use tax rate of $3 or so to the $10.68 it is today.
On the ability to close 320 acres if you’re an LLC: An earlier version of the bill had language in it that did not allow land owned by a “business” entity to close that much. However we were successful in getting that language changed so llc’s and others can close that amount of acres as well and these new closed acres (we believe) will be taxed at the rate which is in effect for the enrolled land. But…..there is language now in the bill that limit the ability to close acres if you own more than 1000 acres.
Other good news is that withdrawal penalties have been capped at a maximum of 10 years.
Stay tuned for more detail.
Clyde Samsel
This is great news. Where can I find the record of who voted for the bill. I would like to thank each legislator who voted for the law.
We need to keep working so we are treated like any other farmer. I believe many states apply USE VALUE to both Ag and Forest land.
Kristie Kasbohm
Thanks for your question, Clyde. This will be available as a link in our eNews which will be sent to your email shortly. I know you receive our eNews, but for those who are reading this and do not receive it, go to our home page and in the center column, you will see a box titled “Join WAFO.” Simply provide your email address there and you will receive monthly and special news emails from us. We never sell our member lists and do not send marketing messages, so we won’t clog up your Inbox with messages you don’t want.