Forest Tax Laws

The purpose of Wisconsin's forest tax laws is to encourage sustainable forestry on private lands by providing property tax incentives to landowners. This is accomplished with a binding agreement between the state Department of Natural Resources and private landowners.

Early property tax policy in Wisconsin required woodland owners to pay higher taxes on their lands. This policy was a financial burden on woodland owners and, in many instances, landowners overcut their timber to pay their tax obligation.

The negative effect of overcutting prompted state authorities to enact forest tax laws to promote timber growing. Today over 33,000 primary landowners, owning more than 3.2 million acres, are enrolled in the two forest tax law programs: Forest Crop Law (FCL) and Managed Forest Law (MFL). The FCL program closed to new enrollment in 1986, when the Managed Forest Law program replaced both FCL and the former Woodland Tax Law.

Lands entered under the forest tax laws are required to have written management plans that landowners must follow. The management plans can address harvesting and thinning timber, tree planting, erosion control, and wildlife measures. These plans must be prepared either by a certified plan writer or a DNR Forester.

Enrollment in MFL is open to all private owners of 10 or more acres of woodlands. Under the forest tax laws, property taxes are set at a low rate -- currently $1.46 per acre for new entries left open to public access. The Managed Forest Law rates will be revised for 2008 by the state Department of Revenue.

Managed Forest Law program petitions must be completed and POSTMARKED by July 1 of each year to be effective in 18 months. A May 15th deadline also exists that allows landowners quicker entry into the program. To be eligible for this deadline, a petition must include a complete management plan prepared by a certified plan writer. Petitions which meet these criteria will take effect 7 1/2 months after this deadline. Under the Managed Forest Law, the landowner agrees to a management plan for a period of 25 or 50 years.

All forest tax laws have stringent requirements and failure to follow the management plan can lead to substantial penalties. You should carefully review all program obligations before signing the management plan. Early withdrawal or declassification results in assessment of a substantial property tax penalty. Any landowner who wants to sell, transfer or withdraw all or part of their tax lands should work with their local DNR forester to fully understand possible penalties.