SB161: Bill Text

DESIGNATION OF ADDITIONAL MANAGED FOREST LAND

Under the MFL program, an owner of land designated as MFL under an order that takes effect on or after April 28, 2004, may apply to the DNR to designate an additional parcel of land as MFL if the additional parcel is at least 3 acres and is contiguous to any of the owner's designated land. The application must include a nonrefundable $20 application recording fee unless a different amount is established by the DNR by rule at an amount equal to the average expense to the DNR of recording a managed forest land order. The fee must be deposited in the conservation fund. An application must be submitted on a DNR form and must contain any additional information required by DNR. [s. 77.82 (4), stats.]

If an owner of land that is designated as MFL under an order that takes effect before April 28, 2004, wishes to have designated as MFL an additional parcel of land that is at least 3 acres in size, that does not satisfy the MFL program eligibility requirements, but is contiguous to any of the owner's designated land, the owner may withdraw the designated land from the original order and may file an application with the DNR for a new order covering both the withdrawn land and the additional land. The withdrawal tax and the withdrawal fee do not apply under these circumstances. [s. 77.82 (4g), stats.] However, the filing of the new order has the effect of applying the current requirements of the MFL program, including a higher rate of taxation to both the additional parcel and the designated land from the original order.

This bill sunsets current law as it applies to owners of land designated as MFL under orders that take effect before April 28, 2004. Instead, under the bill, the land owner would be able to designate an additional parcel of land as MFL in, generally, the same manner as an owner of land designated as MFL under an order that takes effect on or after April 28, 2004.

Under the bill, only the additional parcel of land designated as MFL would be subject to the taxes in effect when the application for addition of the parcel is filed.

LEASING OF MANAGED FOREST LAND

Under current law, for land designated as MFL under an order that takes effect on or after October 27, 2007, no person may enter into a lease or other agreement for consideration if the purpose of the lease or agreement is to permit persons to engage in a recreational activity. Any lease or other agreement for consideration that permits persons to engage in a recreational activity was voided effective January 1, 2008.

The managed forest law defines recreational activities to include hunting, fishing, hiking, sight-seeing, cross-country skiing, horseback riding, and staying in cabins.

This bill repeals the prohibition on leasing of MFL. Instead, the bill permits the leasing of MFL, including leases and other agreements for consideration, that permit persons to engage in a recreational activity, if the use does not conflict with sound forestry practices or any forest management objective contained in the management plan for the land. The bill also specifies that any person who enters into a lease shall be subject to a forfeiture if the lease presents a conflict with sound forestry practices or the forest management objectives contained in the management plan.

TAXATION OF MANAGED FOREST LAND

Except as provided under the MFL program, no tax may be levied on MFL, except that any building on the land is subject to taxation as personal property under ch. 70, stats.

MFL Orders Effective Prior to April 28, 2004

Each owner of MFL must pay to the municipal treasurer an acreage share on or before January 31. Originally, this acreage share was $.74 per acre. In addition to this amount, each owner was required to pay $1 for each acre that is designated as closed under s. 77.83, stats.

Beginning in 1992 and in each 5th year thereafter, the department of revenue (DOR) adjusts the amounts of tax by multiplying the original acreage shares specified by a ratio using as the denominator the DOR's estimate of the average statewide tax per acre of property classes under s. 70.32 (2) (b) 4., 5., and 6., 1993 stats. (agricultural, swamp, or waste and productive forest land), for 1986 and, as the numerator, the DOR estimate of the average tax per acre for the same classes of property for the year in which the adjustment is made. Based on this adjustment, the current acreage share is $.67 per acre of open land and $1.57 per acre of closed land. [s. 77.84 (2) (c), stats.]

MFL Orders Effective on or After April 28, 2004

For MFL orders that take effect on or after April 28, 2004, each owner of MFL must pay to each municipal treasurer, on or before January 31, an amount equal to 5% of the average statewide property tax per acre of property classified as productive forest land under s. 70.32 (2) (a) 6., stats., for each acre of MFL.

In addition to this amount, each owner must pay to each municipal treasurer, on or before January 31, an amount equal to 20% of the average statewide property tax per acre of property classified as productive forest land under s. 70.32 (2) (a) 6., stats., for each closed acre of MFL.

In 2004, 2007, and each 5th year thereafter, DOR is required to determine the average statewide tax per acre of productive forest land by multiplying the average equalized value of productive forest land by the average tax rate determined under s. 76.126, stats. Based on this determination, the current acreage share is $1.67 per acre of open land and $8.34 per acre of closed land. [s. 77.84 (2) (cm), stats.]

This bill specifies new calculations for the closed land acreage shares for MFL orders that take effect on or after the effective date of the bill. Under the bill, owners of closed land under new MFL orders would pay the greater of the following:

• The acreage share applicable to MFL orders that take effect on or after April 28, 2004.

• A total of 25% of the full value of the closed MFL times the full value effective rate of taxation applicable to general property in the same taxation district as the closed managed forest land.

DISTRIBUTION OF MONEYS RECEIVED BY DNR

No later than June 30 of each year, the DNR must pay 100% of each payment received under s. 77.84 (3) (b) (delinquency payments), 77.87 (3) (yield tax), or 77.88 (7), stats. (withdrawal tax), to the treasurer of the municipality in which the land is located. [s. 77.89 (1), stats.]

Additionally, the DNR must pay before June 30 annually the municipal treasurer, from the appropriation under s. 20.370 (5) (bv), stats., $.20 for each acre of land in the municipality that is designated as MFL and for each acre of tribal land in the municipality that has been withdrawn from the MFL program under s. 77.885, stats., but for which payments under s. 77.84 (2), stats., are being made. [s. 77.85, stats.]

Each municipal treasurer must pay 20% of each payment received from the DNR or directly under ss. 77.84 (2) (a) and (am) (payment for closed land), 77.85 (state contribution for MFL acreage), and 77.876, stats. (noncompliance assessments), to the county treasurer and must deposit the remainder in the municipal treasury. The payment to the county treasurer for money received before November 1 of any year must be made on or before November 15 after its receipt. For money received on or after November 1 of any year, the payment to the county treasurer must be made on or before November 15 of the following year. [s. 77.89 (2) (a), stats.]

The municipal treasurer also must pay to the county treasurer all amounts received under s. 77.84 (2) (b) and (bm), stats. (payment for closed land). The county treasurer must, by June 30 of each year, pay all amounts received under this provision to the DNR. All amounts received from the DNR must be credited to the conservation fund and reserved for land acquisition, resource management activities, and grants for land acquisition for outdoor activities. [s. 77.89 (2) (b), stats.]

This bill modifies the distribution of moneys received by local units of government in connection with the MFL program. Under the bill, 20% of MFL payments for closed acreage received by a municipal treasurer would be paid to the DNR. Forty-eight percent of the closed acreage MFL payments received by a municipal treasurer (equivalent to 60% of the amount remaining after payment to the DNR) would be paid to the county. From the closed acreage payments received by a county, the county must spend at least five-sixths of the amount received to acquire by purchase, lease, easement, or other agreement land that will be open to the public for hunting and certain other recreational activities, unless at least 40% of the county's lands are open to the public. If the county meets the 40% threshold, the county may elect to expend some or all of the amount on activities to improve resource management, including forest growth, forest health, fish habitat, wildlife habitat, and watershed protection.

SB161, s. 1 Section 1 . 15.345 (7) of the statutes is created to read:

SB161,6,4 15.345 (7) Managed forest land review board. There is created in the department of natural resources a managed forest land review board consisting of the following members appointed for 3-year terms:

SB161,6,5 (a) One member who is a regional forester employed by the department.

SB161,6,7 (b) One member who is a forester who provides consultation services on forestry issues.

SB161,6,9 (c) One member who is a forester who represents the Society of American Foresters.

SB161,6,12 (d) One member who represents the interests of schools of forestry within the state that have curricula in the management of forest resources that are accredited by the Society of American Foresters.

SB161,6,13 (e) One member who is a county forest administrator.

SB161,6,15 (f) One member who is a member of a nonprofit conservation organization as defined in s. 23.0955 (1).

SB161,6,17 (g) One member who is a private, nonindustrial owner of a woodland that is enrolled in the managed forest land program under s. 77.82.

SB161, s. 2 Section 2. 20.370 (1) (cw) of the statutes is created to read:

SB161,6,20 20.370 (1) (cw) Forestry — enterprise areas. From the revenues collected under s. 70.58, a sum sufficient to make the payments under s. 77.896 (2) (a) and (b).

SB161, s. 3 Section 3. 77.81 (5) of the statutes is repealed.

SB161, s. 4 Section 4. 77.81 (5m) of the statutes is created to read:

SB161,7,3 77.81 (5m) "Public access land" means any of the following:

SB161,7,4 (a) Department land, as defined in s. 23.0917 (1) (c).

SB161,7,5 (b) Federal land managed by the U.S. Forest Service.

SB161,7,6 (c) Land owned by a county that is open to the public.

SB161,7,7 (d) Land that is open under s. 77.83 (2).

SB161, s. 5 Section 5. 77.81 (7) of the statutes is created to read:

SB161,7,9 77.81 (7) "Taxation district" has the meaning given under s. 70.114 (1) (e).

Note: Under s. 70.114 (1) (e), "taxation district" means a city, village or town, except that, if a city or village lies in more than one county, the portions of that city or village that lie within each county are separate taxation districts.

SB161, s. 6 Section 6. 77.82 (3e) of the statutes is created to read:

SB161,7,16 77.82 (3e) Large ownerships. (a) Notwithstanding the requirements for a proposed management plan under sub. (3), upon the request of an owner of managed forest land, the department may modify the requirements under sub. (3) (c) 4. to 7. for the owner's proposed managed forest plan if the owner's application for the designation of managed forest land under sub. (2) covers parcels of land totaling more than 1,000 acres and if the department considers all of the following:

SB161,7,18 1. Whether the owner of the land covered by the application owns other land designated as managed forest land or owns other land entered as forest crop land.

SB161,7,20 2. The number of counties in which the land covered by the application and any other land described in subd. 1. are located.

SB161,7,22 3. Whether the owner of the land covered by the application has made the proposed management plan available to the department for review.

SB161,8,5 4. Whether, if requested by the department, the owner of the land covered by the application has agreed in writing to provide information from the proposed management plan, a description of the proposed management plan, and an outline of a procedure for updating and amending the proposed management plan, to the department for review or audit.

SB161,8,9 5. Whether the owner of the land covered by the application has demonstrated to the department that he or she has consistently been receptive to competent technical assistance from the department or from a technical advisor designated by the department.

SB161,8,16 (b) 1. The department may not approve a proposed management plan as described under par. (a) unless the proposed management plan specifies an annual allowable timber harvest for the land covered by the proposed management plan. This paragraph does not apply to the approval of a proposed management plan that covers land that is prepared by an independent 3rd party who is certified by a recognized forestry organization that has expertise in the use of sustainable forestry practices.

SB161,8,19 2. The department shall promulgate rules that establish an annual allowable timber harvest for managed forest land covered by a management plan approved by the department under this subsection.

Note: This Section shifts the contents of s. NR 46.18 (4), Wis. Adm. Code, relating to modification of management plans, to the managed forest land subchapter of ch. 77, stats. The Section also requires modified management plans to include the establishment of an annual allowable harvest unless the lands are certified by an independent third party.

SB161, s. 7 Section 7. 77.82 (3m) of the statutes is created to read:

SB161,9,6 77.82 (3m) Group managed forest plans. Notwithstanding the requirements for management plans under sub. (3), the department may, upon request, authorize 2 or more owners of managed forest land to designate land to be covered by a group management plan if the total designated land proposed to be covered by the group management plan exceeds 1,000 acres. The department shall promulgate rules that establish criteria, substantially similar to the criteria under sub. (3e) (a) 1. to 5., that the department must consider before approving group management plans under this subsection.

SB161, s. 8 Section 8. 77.82 (3r) of the statutes is created to read:

SB161,9,12 77.82 (3r) Timber harvests. If the department requires an owner of managed forest land covered by a management plan under sub. (3) or (3e), or requires owners of managed forest land covered by a group management plan under sub. (3m), to harvest particular timber from the land within a specified time period, the specified time period may not be a period of less than 3 years.

SB161, s. 9 Section 9. 77.82 (4) (title) of the statutes is amended to read:

SB161,9,14 77.82 (4) (title) Additions Additional designations to managed forest land.

SB161, s. 10 Section 10. 77.82 (4) of the statutes is renumbered 77.82 (4) (a) and amended to read:

SB161,9,22 77.82 (4) (a) Orders on or after April 28, 2004. An owner of land that is designated as managed forest land under an order that takes effect on or after April 28, 2004, may file an application with the department to designate as managed forest land an additional parcel of land if the additional parcel is at least 3 acres in size and, is contiguous to any of that designated land. The, and complies with the other requirements in sub. (1).

SB161,9,25 (c) Fee; additional information. An application under par. (a) or (b) shall be accompanied by a nonrefundable $20 application recording fee unless a different amount for the fee is established by the department by rule at an amount equal to the average expense to the department of recording an order issued under this subchapter. The fee shall be deposited in the conservation fund and credited to the appropriation under s. 20.370 (1) (cr). The application shall be filed on a department form and shall contain any additional information required by the department.

SB161, s. 11 Section 11. 77.82 (4) (b) of the statutes is created to read:

SB161,10,14 77.82 (4) (b) Orders before April 28, 2004. Beginning on the day after the effective date of this paragraph .... [LRB inserts date], an owner of land that is designated as managed forest land under an order that takes effect before April 28, 2004, may file an application with the department to designate as managed forest land an additional parcel of land if the additional parcel is at least 3 acres in size, is contiguous to any of that designated land, and complies with the other requirements in sub. (1). An additional parcel of land that is designated as managed forest land under this paragraph shall be subject to the taxes imposed under s. 77.84 (2) (am) and (bm).

SB161, s. 12 Section 12. 77.82 (4g) (title) of the statutes is amended to read:

SB161,10,17 77.82 (4g) (title) Designation Grandfathered designations of additional managed forest land for certain owners.

SB161, s. 13 Section 13. 77.82 (4g) (a) of the statutes is amended to read:

SB161,10,25 77.82 (4g) (a) If an owner of land that is designated as managed forest land under an order that takes effect before April 28, 2004, wishes to have an additional parcel of land that is at least 10 acres in size and that satisfies the other requirements in sub. (1) designated as managed forest land, the owner may file an application with the department under sub. (2) for a new order covering the additional land. An application may not be filed pursuant to this paragraph after the effective date of this paragraph .... [LRB inserts date].

SB161, s. 14 Section 14. 77.82 (4g) (b) of the statutes is amended to read:

SB161,11,11 77.82 (4g) (b) If an owner of land that is designated as managed forest land under an order that takes effect before April 28, 2004, wishes to have designated as managed forest land an additional parcel of land that is at least 3 acres in size, that does not satisfy the requirements in sub. (1), and that is contiguous to any of that designated land, the owner may withdraw the designated land from the original order and may file an application with the department under sub. (2) for a new order covering both the withdrawn land and the additional land. The withdrawal tax and the withdrawal fee under s. 77.88 (5) and (5m) do not apply to a withdrawal under this paragraph. An application may not be filed pursuant to this paragraph after the effective date of this paragraph .... [LRB inserts date].

SB161, s. 15 Section 15. 77.82 (8) of the statutes is amended to read:

SB161,11,21 77.82 (8) Order. If an application under sub. (2), (4m), or (12) is approved, the department shall issue an order designating the land as managed forest land for the time period specified in the application. If an application under sub. (4) (a) or (b) is approved, the department shall amend the original order to include the additional parcel. The department shall provide the applicant with a copy of the order or amended order and shall also file a copy with the department of revenue, the supervisor of assessments, and the clerk of each municipality in which the land is located, and shall record the order with the register of deeds in each county in which the land is located.

SB161, s. 16 Section 16. 77.83 (2) (am) of the statutes is repealed and recreated to read:

SB161,12,2 77.83 (2) (am) Each owner of managed forest land may enter into a lease, or other agreement for consideration, to allow the land to be used for any purpose, including engaging in one or more recreational activities on the land, if the use does not conflict with any forest management objective contained in the management plan for the land and does not conflict with any sound forestry practice.

SB161, s. 17 Section 17. 77.83 (4) (b) of the statutes is amended to read:

SB161,12,7 77.83 (4) (b) Any person who enters into a lease or agreement under sub. (2) (am) that fails to comply with sub. (2) (am) shall forfeit an amount equal to the total amount of consideration received by the person as a result of violating sub. (2) (am) or $500, whichever is greater.

SB161, s. 18 Section 18. 77.84 (2) (am) of the statutes is amended to read:

SB161,12,14 77.84 (2) (am) For managed forest land orders that take effect on or after April 28, 2004, and before the effective date of this paragraph .... [LRB inserts date], each owner of managed forest land shall pay to each municipal treasurer, on or before January 31, an amount that is equal to 5 percent of the average statewide property tax per acre of property classified under s. 70.32 (2) (a) 6., as determined under par. (cm), for each acre of managed forest land.

SB161, s. 19 Section 19. 77.84 (2) (bm) of the statutes is amended to read:

SB161,12,22 77.84 (2) (bm) For managed forest land orders that take effect on or after April 28, 2004, and before the effective date of this paragraph .... [LRB inserts date], in addition to the payment under par. (am), each owner of managed forest land shall pay to each municipal treasurer, on or before January 31, an amount that is equal to 20 percent of the average statewide property tax per acre of property classified under s. 70.32 (2) (a) 6., as determined under par. (cm), for each acre that is designated as closed under s. 77.83.

SB161, s. 20 Section 20. 77.84 (2) (d) and (e) of the statutes are created to read:

SB161,13,2 77.84 (2) (d) Except as provided in par. (e), for managed forest land orders that take effect on or after the effective date of this paragraph .... [LRB inserts date], each owner of managed forest land shall pay to each municipal treasurer on or before January 31, an amount equal to the amount calculated under par. (am).

SB161,13,7 (e) For managed forest land orders that take effect on or after the effective date of this paragraph .... [LRB inserts date], each owner of managed forest land that is closed under s. 77.83 shall pay to each municipal treasurer on or before January 31, an amount equal to the greater of the sum of the amounts calculated under pars. (am) and (bm) or the sum of the following:

SB161,13,11 1. An amount equal to 5 percent of the full value of the managed forest land that is closed under s. 77.83, multiplied by the full value effective rate of taxation applicable to general property in the same taxation district as the managed forest land.