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| State Tax Commission Bulletin No. 9 of 2002 |
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DATE: July 9, 2002
TO: Assessors, Equalization Directors
FROM: State Tax Commission (STC)
RE: PROPER INTERPRETATION OF THE TERM “TREE FARMING” CONTAINED
IN THE DEFINITION OF THE AGRICULTURAL CLASSIFICATION CONTAINED IN MICHIGAN COMPILED
LAW (MCL) 211.34c(2)(a).
The State Tax Commission has received many inquiries regarding the proper interpretation
of the term “tree farming” contained in the definition of the Agricultural
Real Property Classification Contained in MCL 211.34c(2)(a).
The definition of the Agricultural Real Property Classification is printed
below with the words “tree farming” capitalized for easy reference.
- Agricultural real property includes parcels used partially or wholly
for
agricultural operations, with or without buildings, and parcels assessed
to
the department of natural resources and valued by the state tax commission.
As used in this subdivision, “agricultural operations” means
the following:
- Farming in all its branches, including cultivating soil.
- Growing and harvesting any agricultural, horticultural, or floricultural
commodity.
- Dairying.
- Raising livestock, bees, fur-bearing animals, or poultry.
- Turf and TREE FARMING.
- Performing any practices on a farm incident to, or in conjunction
with, farming operations. A commercial storage, processing,
distribution, marketing, or shipping operation is not part of agricultural
operations.
It is the opinion of the State Tax Commission that “TREE FARMING”,
as that term is used in section 34c of the General Property Tax Act, generally
includes the growing of nursery stock and Christmas Trees. “TREE FARMING”
does NOT include the growing of timber for the harvesting of lumber or pulp.
This opinion by the State Tax Commission is supported by Attorney General Opinion
No. 5702 (copy attached). This is also the interpretation of agricultural use
contained in Public Act 116 of 1974 (MCL 324.36101) where the definition specifically
says that agricultural use does not include the management and harvesting of
a woodlot.
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