Sales and transfers of land under the managed forest land program
Under current law, an owner may sell or otherwise transfer an entire parcel of
MFL. An owner may also sell or transfer part of a parcel of MFL if the land being
sold or transferred is all of the owner's land located in a quarter quarter section or
in a government lot or fractional lot. This substitute amendment eliminates these
restrictions so that any owner may sell or transfer an entire parcel or any part of a
parcel.
Under current law, the land remaining under an MFL order after a sale or
transfer of part of a parcel continues to be eligible as MFL and does not need to be
withdrawn regardless of its size if it is all in one piece (contiguous) and will meet the
productivity requirements for producing merchantable timber, if it is not developed
for a human residence, and if it is not used for commercial recreation, for industry,
or for any other purpose that DNR determines to be incompatible with the practice
of forestry. Under the substitute amendment, in order for the remaining land to
continue to be eligible as MFL, it must be contiguous and at least 15 acres in size and,
under most circumstances, a building or structure may not be on the land.
Withdrawals of managed forest land
Under current law, DNR may issue an order withdrawing land from a parcel
that has been designated as MFL under certain circumstances. These include a
determination by DNR that the land does not comply with the eligibility
requirements under the program or that the owner has failed to comply with the
requirements of the program or with the management plan prepared for the land.
Current law also allows owners to voluntarily withdraw land under certain
circumstances. Under current law, an owner may withdraw all of the owner's land
or all of the land that is in a quarter quarter section or in a government or fractional
lot. An owner may also voluntarily withdraw land on a one-time basis under certain
circumstances for the purpose of construction of a residence. When land is
voluntarily withdrawn for this purpose, the owner must pay withdrawal taxes on the
MFL that is withdrawn and a withdrawal fee.
This substitute amendment creates additional provisions that allow MFL to be
voluntarily withdrawn. The substitute amendment eliminates the provisions that
apply only to withdrawal for construction of a residence. Under the substitute
amendment, an owner may voluntarily withdraw part of an MFL parcel for the
purpose of selling it or using it as a construction site, regardless of whether the
construction site is a construction site for a residence. Under this provision, the land
withdrawn may not be less than one acre and may not be more than five acres. The
substitute amendment limits the number of times that MFL may be withdrawn for
this purpose and requires the owner to pay the withdrawal taxes and the withdrawal
fee.
Under the substitute amendment, MFL may also be voluntarily withdrawn by
an owner if DNR determines that part of a parcel is unsuitable for the production of
merchantable timber, due to environmental, ecological, or economic or other
concerns, or if DNR determines that the parcel is unable to produce merchantable
timber in the amount required under the MFL program. The owner may withdraw
only the number of acres that is necessary for the parcel to resume sustainable
production of merchantable timber or to resume its ability to meet the merchantable
timber production requirement described above. The owner is exempt from paying
a withdrawal tax or fee for these types of withdrawal.
Assessment of withdrawal taxes and yield taxes
Under current law, when DNR issues an order of withdrawal that requires the
payment of a withdrawal tax and fee, DNR determines the amount of the tax and
assesses the tax and fee against the owner. Withdrawal taxes are assessed for
voluntary and DNR withdrawals, as described above, withdrawals that are required
when land is no longer eligible as MFL due to the sale or transfer of part of a parcel,
and withdrawals that are required as a result of failing to pay property taxes.
Under this substitute amendment, once DNR has issued the order of
withdrawal, the county in which the MFL is located, instead of DNR, determines the
amount of the tax and assesses the tax and the fee against the owner.
Similarly, under current law, when merchantable timber is cut from MFL, DNR
determines the amount of the yield tax and assesses that amount. Under the
substitute amendment, the county in which the MFL is located assesses the yield tax.
Calculation of withdrawal taxes
Under current law, the withdrawal tax is the higher of two amounts: the
amount of past tax liability, less the acreage share payments and yield taxes paid
(taxes paid), or 5 percent of the stumpage value of the merchantable timber on the
land, less the taxes paid. Under current law, variations on this method of calculating
the withdrawal taxes are used depending on when the land was designated as MFL,
how long the land has been designated as MFL, and whether the MFL is subject to
an original order or an order that has been renewed.
This substitute amendment eliminates these methods of calculating the
withdrawal tax. Instead, the substitute amendment creates a single method of
calculating this tax. Under the substitute amendment, the amount of withdrawal
tax is calculated by multiplying the total net property tax rate imposed by the city,
town, or village (municipality) in which the land is located by the assessed value of
the land being withdrawn, and then multiplying that amount by ten years, or the
number of years the MFL was subject to the order, whichever is fewer.
Distribution of assessed withdrawal taxes and yield taxes
Under current law, DNR deposits the yield taxes and withdrawal taxes it
collects in the conservation fund. DNR then makes a payment to each municipality
in which the MFL is located that is equal to the amount of withdrawal tax or yield
tax assessed by DNR that is applicable to the MFL in that municipality. Under this
substitute amendment, the county that assesses the yield and withdrawal taxes
distributes to each municipality in the county in which the MFL is located 80 percent
of applicable yield or withdrawal taxes. The county retains the remaining 20
percent. The county also keeps the withdrawal fees.
Renewals of MFL orders
Under current law, an MFL order may be renewed at the end of its 25-year or
50-year term. DNR may deny an application for renewal only if the land does not
comply with the eligibility requirements, the owner has failed to comply with the
management plan for the MFL, or delinquent taxes are owed on the land. This
substitute amendment creates additional grounds that DNR may use for denying a
renewal application. Under the substitute amendment, DNR may deny the
application if the land that is subject to the renewal application is not identical to the
MFL under the existing order or if certain requirements for establishing, updating,
and reviewing mandatory forestry soil and conservation practices in a management
plan are not met.
Large properties; cuttings; management plans
This substitute amendment creates different cutting notice requirements for
large properties. Under current law, an owner of MFL or FCL must file with DNR
a notice of intent to cut merchantable timber at least 30 days before the cutting. DNR
must approve the cutting if it finds that the cutting is in conformance with the
owner's management plan and is consistent with sound forestry practices. The
substitute amendment exempts the owner of a large property from having to file
cutting notices if an independent forestry organization recognized by DNR certifies
that the owner is qualified to ensure that its timber cutting is consistent with sound
forestry practices and if the owner complies with rules regulating cutting practices
that are promulgated by DNR.
Under current law, a landowner must submit with the MFL application a
management plan that contains a statement of the owner's forest management
objectives, a description of the forestry and soil conservation practices that will be
undertaken on the MFL, and supporting maps, aerial photographs, or diagrams.
Under the substitute amendment, DNR may modify these general requirements for
management plans that are prepared for large properties. In determining whether
to do so, DNR must consider certain factors. These factors include how much MFL
the applicant already owns and whether the applicant has consistent access to
technical forest management assistance.
Other provisions
This substitute amendment creates a provision that allows an owner of MFL
that has been damaged by a natural disaster to restore the productivity of the land
so that it meets the requirements under the MFL for producing merchantable timber.
DNR determines the amount of time that the owner will have to restore the land.
If the owner fails to complete the restoration within that time period, either DNR
may order withdrawal of the land or the owner of the land may request withdrawal
of the land. The owner is exempt from payment of withdrawal taxes if the owner
makes the request and DNR determines that the MFL is unable to meet the
production requirements for merchantable timber and if the owner withdraws only
the number of acres necessary for the parcel to again meet the production
requirements.
The substitute amendment provides funding for grants that are awarded to
nonprofit conservation organizations and counties, cities, towns, and villages to
acquire land to be used for hunting, fishing, hiking, sightseeing, and cross-country
skiing.
Under current law, DNR must prepare management plans if DNR determines
that an owner submitting an application to have land designated as MFL is unable
to have a management plan prepared by an independent plan writer who is certified
by DNR but who is not acting on behalf of DNR. Also, DNR may complete a plan if
it does not initially meet DNR's approval. Under current law, DNR charges fees for
preparing and completing plans. This substitute amendment repeals all of the
provisions relating to DNR's preparation and completion of plans.
Under current law, DNR must issue a withdrawal order removing all lands
owned by an Indian tribe from the MFL program if requested to do so by the tribe and
if the tribe provides DNR with the date on which the MFL will be transferred to the
federal government to be held in trust for the tribe and if the tribe and DNR have in
effect a written agreement that the land will continue to be treated as MFL until the
date that the MFL order would have expired. This substitute amendment creates
a parallel provision for withdrawals from the FCL program.
Current law also requires DNR to pay each town treasurer 30 cents per acre of
land in that town that is designated as county forest land. This substitute
amendment increases those payments to 55 cents per acre beginning with payments
made in 2014 for land designated as county forest land as of June 30, 2013.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB700-ASA1,1
1Section
1. 20.370 (1) (cx) of the statutes is repealed.
AB700-ASA1,2
2Section
2. 20.370 (5) (bv) of the statutes is amended to read:
AB700-ASA1,8,63
20.370
(5) (bv)
Resource aids — county forests, forest croplands and managed
4forest land aids. A sum sufficient to pay county forest aids under s. 28.11 (8) (a),
5forest
croplands cropland aids under subch. I of ch. 77 and managed forest land aids
6under
ss. s. 77.85
and 77.89 (1).
AB700-ASA1,3
7Section
3. 20.370 (5) (bz) of the statutes is amended to read:
AB700-ASA1,9,28
20.370
(5) (bz)
Resource aids — forestry outdoor activity grants. As a
9continuing appropriation, the amounts in the schedule for A sum sufficient to award
1grants
awarded by the managed forest land board under s. 77.895.
No moneys may
2be encumbered from this appropriation before July 1, 2015.
AB700-ASA1,4
3Section
4. 28.11 (8) (a) of the statutes is renumbered 28.11 (8) (a) 1. and
4amended to read:
AB700-ASA1,9,105
28.11
(8) (a) 1.
As Except as provided in subd. 2., as soon after April 20 of each
6year as feasible, the department shall pay to each town treasurer 30 cents per acre,
7based on the acreage of such lands as of the preceding June 30, as a grant out of the
8appropriation made by s. 20.370 (5) (bv) on each acre of county lands entered under
9this section.
This subdivision does not apply to payments required to be paid by the
10department after 2013.
AB700-ASA1,5
11Section
5. 28.11 (8) (a) 2. of the statutes is created to read:
AB700-ASA1,9,1612
28.11
(8) (a) 2. As soon after April 20, 2014, as feasible, and as soon after April
1320 of each year thereafter as feasible, the department shall pay to each town
14treasurer 55 cents per acre, based on the acreage of such lands as of the preceding
15June 30, as a grant out of the appropriation made by s. 20.370 (5) (bv) on each acre
16of county lands entered under this section.
AB700-ASA1,6
17Section
6. 74.23 (1) (a) 2. of the statutes is amended to read:
AB700-ASA1,9,2118
74.23
(1) (a) 2. Pay to the proper treasurer all collections of special
19assessments, special charges and special taxes, except that occupational taxes under
20ss. 70.40 to 70.421 and forest cropland
, woodland and managed forest land taxes
21under ch. 77 shall be settled for under s. 74.25 (1) (a) 1. to 8.
AB700-ASA1,7
22Section
7. 74.25 (1) (a) 2. of the statutes is amended to read:
AB700-ASA1,9,2423
74.25
(1) (a) 2. Pay to the proper treasurer all collections of special
24assessments, special charges and special taxes, except that occupational taxes under
1ss. 70.40 to 70.421 and forest cropland
, woodland and managed forest land taxes
2under ch. 77 shall be settled for under subds. 5. to 8.
AB700-ASA1,8
3Section
8. 74.25 (1) (a) 3. of the statutes is amended to read:
AB700-ASA1,10,74
74.25
(1) (a) 3. Retain all collections of special assessments, special charges and
5special taxes due to the taxation district, except that occupational taxes under ss.
670.40 to 70.421 and forest cropland
, woodland and managed forest land taxes under
7ch. 77 shall be settled for under subds. 5. to 8.
AB700-ASA1,9
8Section
9. 74.30 (1) (b) of the statutes is amended to read:
AB700-ASA1,10,129
74.30
(1) (b) Pay to the proper treasurer all collections of special assessments,
10special charges and special taxes, except that occupational taxes under ss. 70.40 to
1170.421 and forest cropland
, woodland and managed forest land taxes under ch. 77
12shall be settled for under pars. (e) to (h).
AB700-ASA1,10
13Section
10. 74.30 (1) (c) of the statutes is amended to read:
AB700-ASA1,10,1714
74.30
(1) (c) Retain all collections of special assessments, special charges and
15special taxes due to the taxation district, except that occupational taxes under ss.
1670.40 to 70.421 and forest cropland
, woodland and managed forest land taxes under
17ch. 77 shall be settled for under pars. (e) to (h).
AB700-ASA1,11
18Section
11. 77.06 (1) of the statutes is renumbered 77.06 (1) (a) and amended
19to read:
AB700-ASA1,11,220
77.06
(1) (a)
No Except as provided in par. (b), no person shall cut any
21merchantable wood products on any forest croplands where the forest
crop cropland 22taxes are delinquent nor until 30 days after the owner has filed with the department
23of natural resources a notice of intention to cut, specifying by descriptions and the
24estimated amount of wood products to be removed and the proportion of present
25volume to be left as growing stock in the area to be cut.
The owner of a large property,
1as defined in s. 77.81 (2r), does not have to file a notice of intention to cut if all of the
2requirements under s. 77.86 (4m) (a) have been met.
AB700-ASA1,11,8
3(b) The department of natural resources may require a bond executed by some
4surety company licensed in this state or other surety for such amount as may
5reasonably be required for the payment to the department of natural resources of the
6severance tax
hereinafter provided prescribed in sub. (5). The department, after
7examination of the lands specified, may prescribe the amount of forest products to
8be removed.
AB700-ASA1,11,11
9(c) Cutting in excess of the amount prescribed shall render the owner liable to
10double the severance tax prescribed in
s. 77.06 sub. (5) and subject to cancellation
11under s. 77.10.
AB700-ASA1,11,13
12(d) Merchantable wood products include all wood products except wood used
13for fuel by the owner.
AB700-ASA1,12
14Section
12. 77.07 (2) of the statutes is amended to read:
AB700-ASA1,11,2315
77.07
(2) Penalty, collections. If any severance tax
remain remains unpaid
16for 30 days after it becomes due, there shall then be added a penalty of 10 percent,
17and such tax and penalty shall thereafter draw interest at the rate of one percent per
18month until paid. At the expiration of said 30 days the department of natural
19resources shall report to the attorney general any unpaid severance tax, adding said
20penalty, and the attorney general shall thereupon proceed to collect the same with
21penalty and interest by suit against the owner and by attachment or other legal
22means to enforce the lien and by action on the bond mentioned in s. 77.06 (1)
(b), or
23by any or all such means.
AB700-ASA1,13
24Section
13. 77.07 (3) of the statutes is amended to read:
AB700-ASA1,12,6
177.07
(3) Distribution of severance tax. All severance taxes collected under
2this subchapter shall be distributed as follows: The state shall retain an amount
3equal to the total acreage payments on the lands to which the severance taxes relate,
4made by the state under s. 77.05, and all penalties imposed under sub. (2) and s. 77.06
5(1)
(c), and the balance shall be paid to the town treasurer to be apportioned as
6provided in s. 77.04 (3).
AB700-ASA1,14
7Section
14. 77.10 (2) (d) of the statutes is created to read:
AB700-ASA1,12,118
77.10
(2) (d) Upon request of an Indian tribe, the department shall issue an
9order of withdrawal for the land that is owned in fee and that is subject to a contract
10under s. 77.03. The land withdrawn is not subjected to the tax payment calculated
11under par. (a) if all of the following apply:
AB700-ASA1,12,1312
1. The Indian tribe provides the department the date of the order to transfer
13the land to the United States to be held in trust for the tribe.
AB700-ASA1,12,1614
2. The tribe and the department have in effect a written agreement under
15which the tribe agrees that the land shall continue to be treated as forest croplands
16until the date on which the contract under s. 77.03 would have expired.
AB700-ASA1,15
17Section
15. 77.81 (1) of the statutes is renumbered 77.81 (1j).
AB700-ASA1,16
18Section
16. 77.81 (1d) of the statutes is created to read:
AB700-ASA1,12,2119
77.81
(1d) "Building" includes any structure used for sheltering people,
20machinery, animals, or plants; used for storing property; used for parking, sales, or
21display space; or used as a place of employment.
AB700-ASA1,17
22Section
17. 77.81 (2m) of the statutes is renumbered 77.81 (1g) and amended
23to read:
AB700-ASA1,13,3
177.81
(1g) "
Independent certified Certified plan writer" means a plan writer
2certified by the department
but who is not acting under contract with the department 3under s. 77.82 (3) (g).
AB700-ASA1,18
4Section
18. 77.81 (2r) of the statutes is created to read:
AB700-ASA1,13,75
77.81
(2r) "Large property" means one or more separate parcels of land that
6are under the same ownership, that collectively are greater than 1,000 acres in size,
7and that are managed forest land or forest croplands or a combination thereof.
AB700-ASA1,19
8Section
19. 77.81 (4m) of the statutes is created to read:
AB700-ASA1,13,109
77.81
(4m) "Natural disaster" means fire, ice, snow, wind, flooding, insects, or
10disease.
AB700-ASA1,20
11Section
20. 77.81 (5) of the statutes is repealed.
AB700-ASA1,21
12Section
21. 77.81 (6) of the statutes is amended to read:
AB700-ASA1,13,1613
77.81
(6) "Recreational activities"
include means recreational outdoor
14activities that are compatible with the practice of forestry, as determined by the
15department. "Recreational activities" includes hunting, fishing, hiking,
16sight-seeing, cross-country skiing, horseback riding, and staying in cabins.
AB700-ASA1,22
17Section
22. 77.82 (1) (a) 1. of the statutes is amended to read:
AB700-ASA1,13,2018
77.82
(1) (a) 1. It consists of at least 10 contiguous acres
, except as provided in
19this subdivision. The. This subdivision applies to applications under sub. (2), (4m),
20or (12) that are filed before June 2, 2014.
AB700-ASA1,14,2
21(am) For purposes of par. (a) 1. and 1m., the fact that a lake, river, stream or
22flowage, a public or private road or a railroad or utility right-of-way separates any
23part of the land from any other part does not render a parcel of land noncontiguous.
24If a part of a parcel of at least 10 contiguous acres is separated from another part of
25that parcel by a public road, that part of the parcel may be enrolled in the program,
1even if that part is less than 10 acres, if that part meets the requirement under subd.
22. and is not ineligible under par. (b).
AB700-ASA1,23
3Section
23. 77.82 (1) (a) 1m. of the statutes is created to read:
AB700-ASA1,14,64
77.82
(1) (a) 1m. a. It consists of at least 15 contiguous acres. This subdivision
5applies to applications under sub. (2), (4m), or (12) that are filed on or after June 2,
62014.
AB700-ASA1,14,117
b. Notwithstanding subd. 1m. a., a parcel may be less than 15 contiguous acres
8if the application is one for renewal of an order under sub. (12), if the order has not
9been previously renewed, if the parcel is at least 10 contiguous acres, and if the owner
10has complied with the management plan that applies to the parcel throughout the
11term of the order.
AB700-ASA1,24
12Section
24. 77.82 (1) (a) 2. of the statutes is amended to read:
AB700-ASA1,14,1513
77.82
(1) (a) 2. At least 80% of the parcel must be producing or capable of
14producing a minimum of 20 cubic feet of merchantable timber per acre per year
,
15except as provided in s. 77.88 (2m).