LRB-3547/1
MGG:eev:rs
2013 - 2014 LEGISLATURE
January 31, 2014 - Introduced by Representatives Mursau and Clark, cosponsored
by Senator Tiffany, by request of Wisconsin Council on Forestry. Referred to
Committee on Environment and Forestry.
AB700,3,2
1An Act to repeal 20.370 (1) (cx), 77.81 (5), 77.82 (2m) (ac), 77.82 (2m) (ag), 77.82
2(2m) (am), 77.82 (2m) (c), 77.82 (2m) (dm) 1., 77.82 (2m) (dm) 2., 77.82 (3) (am),
377.82 (4g), 77.82 (4m) (d), 77.83 (2) (am), 77.83 (4) (b), 77.86 (2), 77.86 (3) (title),
477.87 (1g) (d), 77.88 (2) (a) 1., 77.88 (3g) (a), 77.88 (4), 77.88 (5) (a) 1. and 2., 77.88
5(5) (ab), 77.88 (5) (ar), 77.88 (5) (b), 77.88 (5) (c), 77.88 (6) and 77.91 (3);
to
6renumber 77.81 (1), 77.83 (4) (a), 77.86 (1) (a), 77.86 (1) (b) and 77.89 (2) (b);
7to renumber and amend 77.06 (1), 77.81 (2m), 77.82 (1) (bn), 77.82 (12), 77.86
8(1) (title), 77.86 (1) (c), 77.86 (1) (d), 77.86 (3), 77.88 (2) (a) (intro.), 77.88 (2) (a)
92., 77.88 (2) (a) 3., 77.88 (2) (e), 77.88 (2) (f), 77.88 (3), 77.88 (5) (a) (intro.) and
1077.89 (2) (a);
to amend 20.370 (5) (bv), 74.23 (1) (a) 2., 74.25 (1) (a) 2., 74.25 (1)
11(a) 3., 74.30 (1) (b), 74.30 (1) (c), 77.07 (2), 77.07 (3), 77.81 (6), 77.82 (1) (a) 1.,
1277.82 (1) (a) 2., 77.82 (1) (b) 3., 77.82 (2m) (title), 77.82 (3) (title), 77.82 (3) (ag),
1377.82 (3) (ar), 77.82 (3) (c) (intro.), 77.82 (3) (g), 77.82 (4), 77.83 (2) (b), 77.84 (3)
14(b), 77.86 (4), 77.86 (5) (a), 77.86 (5) (b), 77.87 (1), 77.87 (2), 77.87 (3), 77.87 (5),
177.876 (1), 77.876 (4), 77.88 (title), 77.88 (1) (b) 1., 77.88 (1) (c), 77.88 (2) (am),
277.88 (2) (b), 77.88 (2) (c), 77.88 (3) (title), 77.88 (3g) (title), 77.88 (3g) (am)
3(intro.), 77.88 (3g) (b), 77.88 (3g) (c), 77.88 (3j) (c), 77.88 (3m), 77.88 (5) (am) 1.,
477.88 (5m), 77.88 (7), 77.88 (8) (b), 77.883 (3), 77.885 (intro.), 77.89 (1), 77.89
5(2) (title) and 77.91 (3m);
to repeal and recreate 77.86 (title); and
to create
677.10 (2) (d), 77.81 (1d), 77.81 (2r), 77.81 (4m), 77.82 (1) (a) 1m., 77.82 (1) (bp),
777.82 (3m), 77.82 (12) (a) 2., 77.82 (12) (a) 4., 77.82 (12) (a) 5., 77.82 (12) (a) 6.,
877.83 (2) (ar), 77.83 (2) (d), 77.86 (1g) (title), 77.86 (4m), 77.88 (2) (a) (title), 77.88
9(2) (ac) (title), 77.88 (2) (d) (title), 77.88 (2m), 77.88 (3) (am), 77.88 (3) (b) (title),
1077.88 (3) (b) 1. (intro.) and 2., 77.88 (3) (c), 77.88 (3) (d), 77.88 (3g) (c), 77.88 (3j),
1177.88 (3k), 77.88 (3L), 77.88 (4m), 77.88 (5) (ac), 77.88 (5) (am) (title) and 77.89
12(3) (title) of the statutes;
relating to: eligibility requirements under the
13managed forest land program relating to parcel size and production of
14merchantable timber, management plans for managed forest lands, orders
15adding and withdrawing managed forest land, renewal of orders designating
16managed forest land, areas of managed forest lands that are open for public
17access, allowing managed forest lands to be used for recreational activities,
18regulation of cutting of timber on managed forest land and on forest croplands,
19withdrawal taxes and fees imposed on the withdrawal of managed forest land
20and yield taxes imposed for cutting timber from managed forest land, the sale
21or transfer of managed forest land, expiration of orders designating managed
22forest land, withdrawal of forest croplands that are held in trust for Indian
23tribes, a study of the managed forest land program, a report on exempt
24withdrawals from the managed forest land program and the forest cropland
25program, elimination of references to the woodland tax law, granting
1rule-making authority, requiring the exercise of rule-making authority, and
2providing a penalty.
Analysis by the Legislative Reference Bureau
Under current law, certain forested land may be designated as managed forest
land (MFL) under a program administered by the Department of Natural Resources
(DNR). Under this program, the owner of land designated as MFL makes an annual
acreage share payment that is lower than, and in lieu of, the property taxes that
normally would be payable. In exchange, the landowner must comply with certain
forestry practices and have a management plan prepared for the land. The owner
must also open the MFL to the public for hunting, fishing, hiking, sight-seeing, and
cross-country skiing, but may designate up to a certain number of acres as being
closed to the public. For MFL that is designated as closed, the owner must make an
additional payment per acre. A landowner seeking to have land designated as MFL
submits an application to DNR that contains a management plan for the land. If the
MFL meets the eligibility requirements under the program, which include minimum
acreage requirements and requirements as to how much merchantable timber can
be produced on the land, DNR approves the application and issues an order
designating the land as MFL. A landowner may choose to have the order last 25 or
50 years.
A similar program exists for land designated as forest croplands (FCL). Since
July 1985, no new land may be subject to the FCL program. However, there is forest
land that is currently in this program since the designations last for 25 or 50 years.
Eligibility under the managed forest land program
Under current law, for a parcel of land to be eligible to be designated as MFL
it must be at least ten contiguous acres in size. Also, at least 80 percent of the parcel
must be producing or be capable of producing a minimum of 20 cubic feet of
merchantable timber per acre per year. The parcel may have public or private roads
or railway or utility rights-of way running through it. This bill increases this
minimum acreage requirement from ten acres to 20 acres.
Under current law, a parcel that is developed for a human residence is not
eligible for designation as MFL. Under the bill, a parcel is not eligible if there is any
building, or any improvement associated with a building, located on the parcel. The
bill defines a building to include any structure used as shelter, as a place of
employment, or as storage. Under the bill, an "improvement" includes any accessory
building, structure, or fixture that is placed on a parcel for the parcel's benefit. The
bill also specifically excludes roads, certain rights-of way, fences, and other
structures from being considered improvements.
Access to closed lands
This bill requires the owner of open MFL to ensure that the public has access
to the land. Sometimes, open MFL is surrounded by closed MFL or other private
property, making it impossible for the public to have access to the land without
having permission from an owner of some of the surrounding land. Under the bill,
the method and location of access to open MFL must be equivalent to the method and
location that is used by the owner of the MFL. If the owner is unable to provide such
access, DNR must modify the designation of the land from being open to being closed.
Leasing of managed forest land
Under current law, an owner of MFL may not lease the land or enter into any
other agreement under which the owner receives consideration for the purpose of
allowing persons to engage in certain recreational activities, such as hunting, hiking,
horseback riding, and staying in cabins on the MFL. Current law provides an
exception for agreements under which reasonable membership fees are charged by
a nonprofit organization and that are approved by DNR.
This bill repeals this prohibition and specifically authorizes owners of MFL to
enter into leases or other agreements to allow closed MFL that is not part of a large
property to be used for recreational activities. The bill also expands the types of
recreational activities for which the land may be leased to include any recreational
outdoor activity that DNR determines to be compatible with the practice of forestry.
Sales and transfers of land under the managed forest land program
Under current law, an owner my 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. Forty acres make up a quarter quarter section.
A government or fractional lot is an irregularly shaped lot usually fronting on water,
which could not be divided practically into sections when it was surveyed by the
federal government. This bill 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 bill, the remaining land does not have to be contiguous but
must be at least 20 acres in size in order to continue to be eligible as MFL.
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 bill creates additional provisions that allow MFL to be voluntarily
withdrawn. Under the bill, an owner may voluntarily withdraw part of an MFL
parcel for the purpose of selling it or using it as a construction site, other than 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 bill 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 bill, 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 bill, 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 bill,
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 bill eliminates these methods of calculating the withdrawal tax. Instead,
the bill creates a single method of calculating this tax. Under the bill, 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
bill, 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 bill
creates additional grounds that DNR may use for denying a renewal application.
Under the bill, 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 bill creates different cutting notice requirements for parcels of either MFL
or FCL that are under the same ownership and that are collectively greater than
1,000 acres in size (large property). 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 bill 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 bill, 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 bill 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.
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 bill 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 bill creates a parallel provision
for withdrawals from the FCL program.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB700,1
1Section
1. 20.370 (1) (cx) of the statutes is repealed.
AB700,2
2Section
2. 20.370 (5) (bv) of the statutes is amended to read:
AB700,8,23
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),
1forest
croplands cropland aids under subch. I of ch. 77 and managed forest land aids
2under
ss. s. 77.85
and 77.89 (1).
AB700,3
3Section
3. 74.23 (1) (a) 2. of the statutes is amended to read:
AB700,8,74
74.23
(1) (a) 2. Pay to the proper treasurer all collections of special
5assessments, special charges and special taxes, except that occupational taxes under
6ss. 70.40 to 70.421 and forest cropland
, woodland and managed forest land taxes
7under ch. 77 shall be settled for under s. 74.25 (1) (a) 1. to 8.
AB700,4
8Section
4. 74.25 (1) (a) 2. of the statutes is amended to read:
AB700,8,129
74.25
(1) (a) 2. Pay to the proper treasurer all collections of special
10assessments, special charges and special taxes, except that occupational taxes under
11ss. 70.40 to 70.421 and forest cropland
, woodland and managed forest land taxes
12under ch. 77 shall be settled for under subds. 5. to 8.
AB700,5
13Section
5. 74.25 (1) (a) 3. of the statutes is amended to read:
AB700,8,1714
74.25
(1) (a) 3. 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 subds. 5. to 8.
AB700,6
18Section
6. 74.30 (1) (b) of the statutes is amended to read:
AB700,8,2219
74.30
(1) (b) Pay to the proper treasurer all collections of special assessments,
20special charges and special taxes, except that occupational taxes under ss. 70.40 to
2170.421 and forest cropland
, woodland and managed forest land taxes under ch. 77
22shall be settled for under pars. (e) to (h).
AB700,7
23Section
7. 74.30 (1) (c) of the statutes is amended to read:
AB700,9,224
74.30
(1) (c) Retain all collections of special assessments, special charges and
25special taxes due to the taxation district, except that occupational taxes under ss.
170.40 to 70.421 and forest cropland
, woodland and managed forest land taxes under
2ch. 77 shall be settled for under pars. (e) to (h).
AB700,8
3Section
8. 77.06 (1) of the statutes is renumbered 77.06 (1) (a) and amended
4to read:
AB700,9,125
77.06
(1) (a)
No Except as provided in par. (b), no person shall cut any
6merchantable wood products on any forest croplands where the forest
crop cropland 7taxes are delinquent nor until 30 days after the owner has filed with the department
8of natural resources a notice of intention to cut, specifying by descriptions and the
9estimated amount of wood products to be removed and the proportion of present
10volume to be left as growing stock in the area to be cut.
The owner of a large property,
11as defined in s. 77.81 (2r), does not have to file a notice of intention to cut if all of the
12requirements under s. 77.86 (4m) (a) have been met.
AB700,9,18
13(b) The department of natural resources may require a bond executed by some
14surety company licensed in this state or other surety for such amount as may
15reasonably be required for the payment to the department of natural resources of the
16severance tax
hereinafter provided prescribed in sub. (5). The department, after
17examination of the lands specified, may prescribe the amount of forest products to
18be removed.
AB700,9,21
19(c) Cutting in excess of the amount prescribed shall render the owner liable to
20double the severance tax prescribed in
s. 77.06 sub. (5) and subject to cancellation
21under s. 77.10.
AB700,9,23
22(d) Merchantable wood products include all wood products except wood used
23for fuel by the owner.
AB700,9
24Section
9. 77.07 (2) of the statutes is amended to read: