MANAGED FOREST LAW

Clean-up bill is being considered to propose updates to structures and entry size

 

Recent changes to the Managed Forest Law provided considerable improvements for those of us who have land enrolled in the program. But, we all know that after major law changes occur, there are often unanticipated problems which need to be corrected.

Two of the bigger changes that WAFO is working on are related to allowing structures on MFL land and expanding eligibility to allow smaller parcels to be entered into the program.

1.Structures that are necessary to store equipment used to carry out forestry activities should be allowed

Although current law prohibits entry of a parcel on which there is a building or an improvement, there is an exception to that provision under section 77.82(1)(bp)2.g, which allows for structures and fixtures needed for sound forestry practices.

We believe that this exception could be used to allow for buildings that are used for storing equipment necessary to accomplish sound forestry practices as the DNR develops administrative rules that would further define what would or wouldn’t be allowed.

As changes to the MFL were last being debated, local municipalities lobbied to see that no structures be allowed on future MFL entries. Their concerns were related to the difficulty in defining the tax status of structures as “personal property” vs. “improvement.”

Although the law change now allows landowners to remove small acreages from the program if they desire to sell or build on it, many landowners do not want to get a survey, file paperwork, and pay penalties if all they simply need is a structure in which they can store the equipment they need to manage their forestland.

Most, but not all, local municipalites tax these structures as “personal property,” which creates much more administrative work (including processing an additional tax bill). Current law, s.77.84(1), states that “…no tax may be levied on managed forest land, except that any building on managed forest land is subject to taxation as personal property.”

WAFO ACTION:  WAFO is proposing that these structures needed to store equipment be allowed and that they then be taxed as an “improvement,” as they are necessary in managing their forestland as their plan requires. We support those municipalities which have interpreted the statute less restrictively and tax these structures as improvements. Although this provision could simply be struck from the statutes, timing is a problem given the legislature has adjourned for the year. Stay tuned for more information as it becomes available.

Changes to tax structures as an improvement would ease DNR administrative work

The DNR, in developing guidance on what comprises “structures and fixtures needed for sound forestry practices” (now allowed under the law), has indicated they are not likely to identify sheds or garages used to store equipment as being eligible for this exception. If it was clear that municipalities could tax those structures as an improvement, the DNR would be more likely to change their guidance to allow them. To make their changes law, the DNR is currently developing an update to their Administrative Rule, NR46. The draft rule will be subject to public hearings and ultimately legislative approval. WAFO will be closely following this process.

Another problem related to the taxation of structures is the DNR definition of a “hunting blind.” Logically, small blinds are not worth being assessed and taxed, but as we know, there are some “blinds” that are more substantial in size.  If a municipality was allowed to use discretion at tax time, another problem would be eliminated. And as long as these structures don’t interfere with practicing sound forestry, DNR requirements should be satisfied.

 

2. Expand the eligibility of smaller parcels to be enrolled in the MFL

In response to concerns that smaller parcels could not reasonably be used to provide commercially available timber, the law changed the minimum entry size from 10 acres to 20 acres. Since then, WAFO has heard from many landowners who can no longer enroll smaller woodlots, even if located on their property, into the program.

Current law has each woodlot defined as its own “parcel.” The problem then occurs when landowners have, for example, a 15 acre woodlot on their land separated from another 20 acre woodlot by an agricultural field or wetland. In situations like this, the 15 acre “parcel” would not be eligible for entry, despite being managed the same as the larger parcel. Some landowners have discovered that they can connect these two woodlots by planting a row of trees to make them a single entry.

WAFO ACTION: We are proposing a law change that allows landowners to meet the 20 acre requirement by allowing them to enroll separate, discrete parcels that are all located on contiguously owned property in any one municipality, as long as they total more than 20 acres.

 

Representative Jeff Mursau (Crivitz) has indicated he is willing to introduce legislation to make these, and other clean-up changes, when the legislature resumes deliberation again next year. WAFO appreciates Rep. Mursau’s leadership in getting the MFL changed and we support his efforts on introducing a bill to make these and other changes reality in the next legislative session.