Severance and Yield Tax Rates - 2008
2008 Rates - Effective Nov. 1, 2007
Forest Crop Law
Managed Forest Law
New Forest Crop Law (FCL) severance and Managed Forest Law (MFL) yield tax rates will go into effect on November 1, 2007 and will be effective through October 31, 2008. Timber harvested within this time frame will use the new 2008 rates.
Severance and yield taxes are collected by the Department and returned to the local municipality as partial payment of taxes that landowners deferred while their trees were growing. The rates that will be used will depend on the species and product that was harvested.
Landowners can estimate their severance and yield tax bills by using the yield/severance tax payment rate tables (above) and the zone map (right), as long as they have the volume of timber and the species cut.
Example: Joe Forester has land in Forest Township, in St. Croix County and just completed a timber sale according to his MFL management plan and approved cutting notice. After the cutting was completed, Joe submitted his cutting report to his local DNR forester and decided to see how much his yield tax might be.
Joe knew the actual volume cut because his logger and cooperating forester provided him with all of the scale slips. Joe decided to create a chart similar to the one below in order to carry out his calculations.
Joe saw that his land is in severance and yield schedule zone #12. He went to the MFL yield tax payment rate charts to find the tax that he would be paying. He inserted the tax payments into his chart. Joe knew that the rates used for his sawlogs were based on every 1000 board feet, so he decided to convert his actual board foot volume to 1000 board foot volume prior to doing his calculations. Lastly, Joe calculated his yield tax payment by species and learned his estimated total yield tax payment.
| Species | Actual Volume | Board Foot Conversion | Tax Rate | Total Yield Tax by Species |
|---|---|---|---|---|
| Red Oak | 15,000 Board Feet | 15 | $15.05/1000 | $225.75 |
| Sugar Maple | 7,250 Board Feet | 7.250 | $15.10/1000 | 109.48 |
| White Ash | 2,000 Board Feet | 2 | $5.65/1000 | 11.30 |
| Basswood | 3,500 Board Feet | 3.5 | $5.10/1000 | 17.85 |
| White Pine | 4,350 Board Feet | 4.35 | $3.95/1000 | 17.19 |
| Aspen | 74 Cords | $1.35/cord | 99.90 | |
| White Birch | 24 Cords | $0.90/cord | 21.60 | |
| TOTAL | $503.07 | |||
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