Forestry

Forest Tax Laws

Program Resources

Managed Forest Law Revisions

2008

The passing of the 2008-09 Wisconsin state budget made a change to the Managed Forest Law (MFL) program. This statutory change states that effective January 1, 2008:

  • No person may enter into a lease or other agreement for consideration or compensation if the purpose of the lease or agreement is to permit persons to engage in a recreational activity.
  • A person who currently has a lease or other agreement for consideration on closed MFL land must terminate the lease before January 1, 2008 if that person wishes to continue receiving the benefits of the MFL program.
  • Non-profit organizations are exempt if the lease or agreement has consideration or compensation solely for reasonable membership fees and is approved by the Department of Natural Resources.

The specific recreational activities covered in the new law are hunting, fishing, hiking, sight-seeing, cross-country skiing, horseback riding and staying in cabins.

These frequently asked questions and answers are provided to help explain the change in the law.

  1. Why was the MFL law changed to exclude the ability to be compensated for recreational rights on closed lands? The MFL program was written in 1986 to allow landowners a property tax reduction and deferment in return for providing public benefits from their woodlands for many years to come. The public benefits include the production of forest products, creation of jobs, clean air, clean water, wildlife habitat and providing public recreation, specifically hunting, fishing, hiking, sight-seeing and cross-country skiing. Landowners are allowed to keep up to 80 acres of land closed to public use (more recent entries pay higher fees and can close up to 160 acres). Unfortunately, some landowners have divided their properties to create the appearance of different ownerships in an effort to close more land than would otherwise be allowed under the law. In some cases, these lands are subsequently leased to hunters for revenue. More landowners (particularly those with large holdings) have decided to divide their properties, close lands and lease recreational use rights. As a result lands that would otherwise be open to the public as part of the MFL program are no longer available. The Legislature’s decision to change the law appears to have been done in an effort to remove the incentive to divide property, close lands to public access and receive compensation for allowing recreational uses.
  2. Does the change affect me if I’ve been under MFL for many years? Yes. The Legislature has the authority and power to modify laws, including laws affecting long-term programs such as the Managed Forest Law. In this case, the Legislature appears to have made the change to bring implementation of the program more clearly in line with the purposes for which it was created.
  3. What does the change in the law mean to me? If you don’t lease or receive any compensation or consideration for allowing others to recreate on your closed land you will not be impacted. If you lease your land or receive compensation for allowing these recreational activities you will need to terminate your lease or agreement (written or verbal) by January 1, 2008 in order to remain in compliance with the law.
  4. What will happen if I don’t terminate my lease or agreement? Landowners who do not comply can be fined the higher of $500 or the amount of their lease or agreement. Continuing the practice may result in removal from the MFL program.
  5. Can I still control who enters my closed lands? Yes. The change does not remove the ability of a landowner to control who is allowed on their closed MFL lands. You are simply not allowed to receive compensation or consideration for specific recreational uses.
  6. What does consideration or compensation mean in the law? To constitute consideration, a performance or return promise must be bargained for. The performance may consist of (a) an act other than a promise, or (b) a forbearance, or (c) the creation or modification of a legal relation. A clear example of a performance or return promise is that a person pays cash for the right to hunt or recreate on any given piece of land. However, not all consideration or compensation needs to include the exchange of money. Exchanges of goods or services are also a consideration and violation of the law if that exchange of goods or service was negotiated for the right to use the land for any of the specific recreational activities. Simply put, if you barter for something of value in return for recreational use of your property, that is “consideration” and not allowed on MFL lands.
  7. Does this mean that I can no longer receive gifts from a hunter or hiker? No. You can accept gifts from a hunter or other recreational user as thanks for being allowed to use your land for recreational purposes. You are not allowed to make receiving the gift from the person a condition for them to use your property for recreational purposes, however.
  8. Can lands already in the MFL program be grandfathered to allow leases? No. The law specifically addressed previously enrolled lands and provided a limited window for the owners to come into compliance with the new provisions. That deadline to come into compliance with the law is January 1, 2008.
  9. Can I remove my land from the MFL program if I don’t agree with these changes? Yes, but withdrawal prior to the ending date of the MFL order period will result in you being assessed for all deferred property taxes that would have been paid had you not participated in the program. Caution: Withdrawal penalties can be significant and this option should not be done without a careful analysis of the costs and benefits prior to submitting any paper work.
  10. Who do I contact if I want more information? You may contact your local DNR forester or Ken Symes, Enforcement Specialist for the Forest Tax Section, for more information. A list of DNR foresters and their contact information can be found on our Professional Help webpage and Ken can be reached at (608) 266-8019.

2006

Governor Doyle signed into law 2005 Wisconsin Act 299 that made changes to the Managed Forest Law (MFL) program effective April 21, 2006. The change affected the land eligible for entry into the MFL program.

Formerly, land applied for enrollment had to consist of 10 contiguous acres under the same ownership and in a single municipality. Landowners therefore applied for entry into the program by municipality. 2005 Wisconsin Act 299 made it possible for an owner of land to apply for 10 contiguous acres under the same ownership, even if it crossed municipal lines. This change also affected the eligibility requirements for land added to existing MFL parcels or land converted from the Forest Crop Law (FCL) program to the MFL program.

  1. New order. A parcel of land is eligible for designation as MFL land if it consists of at least 10 contiguous acres under the same ownership.
  2. Addition. A parcel of land is eligible for an addition to an existing MFL parcel (entered in 2005 or later) if the new land is at least 3 acres in size, contiguous to the existing MFL land, and is under the same ownership.
  3. Withdrawal and re-designation. If a landowner would like to add land to an existing MFL parcel entered prior to 2005 and the new land does not meet the new order eligibility requirements, the existing MFL parcel can be withdrawn and re-designated with the additional land. A parcel of land is eligible for a withdrawal and re-designation if the new land is at least 3 acres in size, contiguous to the existing MFL land, and is under the same ownership.
  4. Conversion. A parcel of land is eligible for a conversion from the FCL program to the MFL program if all of the owner’s FCL land in the municipality or municipalities on the petition is converted to MFL.

On November 1, 2007, changes to Chapter NR 46 Wisconsin Administrative Code were made to reflect the 2005 Wisconsin Act 299 statutory changes. The petition fee was changed to $20 for each county on the MFL petition. This $20 fee is provided to cover the cost of recording the documents associated with a Managed Forest Law entry in each county.  

More information:
Wisconsin’s Managed Forest Law – Petition Instructions and Guidance [PDF, 374KB]
Managed Forest Law Petition for Designation/Conversion [PDF, 160KB]
Forest Tax & Stewardship News, Fall 2007, Page 11 [PDF, 2MB]

2005

On July 25, 2005, Governor Doyle signed into law 2005 Wisconsin Act 25, the 2005/07 Budget Bill. This act made some changes to the Managed Forest Law (MFL) related to the application fee, who is responsible for preparing management plans required for enrollment, and the cost for the development of the management plan. Please read this fact sheet [PDF, 35K] to learn more.

2004

Governor Doyle signed the 2003 Wisconsin Act 228 - Managed Forest Law Revisions into law on April 13, 2004.

2003 Wisconsin Act 228 incorporates the recommendations of the 2002 review of the Managed Forest Law (MFL) program by a task force commissioned by the former Governor's Council on Forestry.

This revision includes changes that will affect current and future enrollees in the program as well as townships and counties.

The objectives of the review were to:

  1. Review the Managed Forest Law (MFL) in the context of the Forestry Division's ability to meet the burgeoning workload, Forestry Account Legislative Audit concerns, and concerns expressed about the program's impact on local tax revenue.
  2. Recommend changes in the MFL to improve efficiency in application processing, enforcement and compliance as well as perceived inequities in the distribution of taxes, fees and aids.

The result was a detailed report published in December 2002 outlining the recommendations agreed upon by the task force. The full Governor's Council on Forestry approved the report unanimously at its December 5, 2002, meeting. 2003 Wisconsin Act 228 addresses most of those recommendations and was drafted to facilitate practical and efficient implementation.

A summary of the changes is in the 2003 Wisconsin Act 228 Fact Sheet - Revision date August 2. 2004 (PDF, 171K). Additional information on the statute is available on the state Legislature web site and also the Wisconsin State Assembly's Committee on Forestry page.

More information (in PDF format):

Last Revised: Monday August 18 2008