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Information for local government

Notifying the DNR of title transfers

The County Equalization Office should notify the DNR of title transfers on commercial forest land within 30 days

Notification must be in writing and can be in the form of a copy of the recorded deed or parcel record or other document that includes the new owner’s name, the new owner’s address and the legal description(s) of the commercial forest land that was transferred to the new owner.

Notification can be provided via any of the following means:

Tribal entities

Land owned by tribal entities that is (or would be) subject to ad valorem property tax is eligible to be listed (or remain listed).

Land owned by tribal entities on which property taxes are pre-empted under federal law are not eligible to be listed (or remain listed).

If a tribal entity acquires land that is already listed in the commercial forest program and the subsequent property taxes are pre-empted under federal law, the DNR may withdraw these lands from commercial forest classification. Such a withdrawal is not subject to the withdrawal application fee or withdrawal penalty.

Calculate landowner tax rates and state payments

The commercial forest tax rate increases 5 cents every 5 years. 

  • 2017-2021 - $1.30 per acre, per year
  • 2022-2026 - $1.35 per acre, per year

Land listed in Parts 511 and 512 is taxed at a rate 15 cents less per acre. 

  • 2017-2021 - $1.15 per acre, per year
  • 2022-2026 - $1.20 per acre, per year

The County Tax Parcel Reports indicate if a parcel is enrolled in Part 512 at the end of each location entry.

Distribution of revenue

Local governments receive Commercial Forest Program revenue from the following sources:

 Payer

Item

Paid to

State of Michigan Annual Payment County Treasurer
Landowner Specific tax bill  Township Treasurer
Landowner Withdrawal penalty Township Treasurer

A portion of commercial forest revenue must be returned to the State School Aid Fund. To assist in determining the amount, the Department of Treasury mails an annual return to each township and county with commercial forest land. These returns are mailed in late spring/early summer. 

Local governments can submit annual or monthly returns. 

Contact Howard Heideman for more information regarding distribution of revenue.