What do I need to know about harvesting timber?

A written management plan is required for all tax law lands and must be followed. Management plans include scheduled timber harvests determined on the basis of growth rates and age at the time the tax contract between the landowner and the Department of Natural Resources (DNR) is signed .

At least 30 days prior to cutting, a notice must be filed with the local DNR forester for approval. This notice is part A of the Cutting Notice and Report, Form 2450-32 [PDF, 213KB]. The cutting notice must state the volume and type of cut (clear-cut, selected harvest). Timber harvests that are not recommended in management plans may require further investigation.

Once a timber harvest has been completed a report must be filed with the DNR. This report is part B of the Cutting Notice and Report, Form 2450-32. The cutting report must contain final timber volumes by species and product. This report must be filed within 30 days of the timber sale.

Using the timber volumes supplied and approved by the local forester, the DNR assesses a tax to be paid by the landowner. Under the Forest Crop Law (FCL) this is a 10 percent severance tax while under the Managed Forest Law (MFL) this is a five percent yield tax. These taxes are based on average timber prices for that zone of the state. NOTE: The five percent yield tax will be waived for the first five years of most MFL land entered under the law beginning in 2005.

Each year the DNR determines the average timber prices in each zone and brings them to public hearing as part of the Administrative Code approval process. Revenues generated by harvest taxes are shared between the county and local governments.

Improper timber harvests are in violation of the forest tax law contracts and the landowner may be penalized. Be sure to talk with your DNR forester and/or consultant forester prior to contracting for a harvest.