The DNR Division of Forestry recently finalized updates to the Forest Tax Law Handbook, Chapter 221, regarding the Managed Forest Law Certified Group. This chapter contains procedures required to conform with third-party forest certification and serves to inform group stakeholders of how the MFL Certified Group works. The update constituted a holistic rewrite of the original Ch. 21 of the Forest Tax Law Handbook. Find a detailed summary of the changes made. Continue reading “Forest Tax Law Handbook Forest Certification Chapter Updated”
Managed Forest Law
Following The Right Path
Note: This is the first in a series of articles featuring Managed Forest Law landowners. This feature of Jim Schiller was written by Art Kabelowsky, a communications specialist in the Division of Forestry. Kabelowsky took the photos as well.
Forest landowner Jim Schiller teams up with DNR’s Managed Forest Law program on his successful woodland property near New Glarus.
Not even a chilly, overcast Monday afternoon could dampen the enthusiasm of Jim Schiller as he showed off his favorite place.
While taking a visitor on a tour of his 29-acre woodlot west of New Glarus in Green County, Schiller paused frequently to explain the past, present and future of each section of the property.
A few red oak trees here, some walnut trees there, a group of white oak trees planned on the other side of the path … spots where he’ll plant conifer seedlings to help protect his deciduous trees … areas where he has begun work to control invasive species such garlic mustard … his thoughts on when and what to harvest.
“You’ve always got to be thinking ahead,” Schiller said. “That’s the main thing I’ve gotten out of all of this.” Continue reading “Following The Right Path”
Seeking Comments on Forest Tax Law Handbook
The DNR Division of Forestry is committed to informing and involving our stakeholders in the development and review of materials that guide our programs. The following document with revisions is available for review and comment through 3/10/2023:
Forest Tax Law Handbook Chapter 221, Forest Tax Law Handbook Chapter 221, Managed Forest Law Certified Group, containing procedures required to conform with third party forest certification. Serving to inform group participants and other interested parties of how the MFL certified group works, the chapter describes how Tax Law administration accomplishes the roles and responsibilities of certified group management, including entry and deactivation of group members, records maintenance, monitoring, and reporting. Revisions to the chapter incorporate updates to Tax Law procedures and program guidance and contribute to implementing forest certification within the MFL Certified Group. Recent updates to third-party forest certification group standards are also reflected in the revisions to this chapter. To review and provide feedback on a document, go to the DNR Forestry Public Comment Page. Email your comments to the staff member listed in the “Contact Person” column. Clicking on their name will take you to the staff directory, where you’ll find their contact information.
The Forest Tax Law Handbook serves to digest the law relating to the forest tax programs and provide guidance for the administration and implementation of the Tax Law programs. The Handbook embodies statute and rule and provides greater procedural detail to ensure consistency in their application. As such, the chapters provided for your review have been updated to reflect changing regulations and operational efficiencies, as summarized above and detailed on the Stakeholder Input Page.
The MFL Certified Group is a voluntary opportunity offered to small account MFL landowners to participate in forest certification. The DNR Division of Forestry facilitates participation in the Certified Group to support our vital Wisconsin forest industries by building a credible supply of certified raw materials while further optimizing the added social and ecological benefits certified forests provide. Generally speaking forest certification requirements will exceed landowner obligations under MFL, but it can also provide access to timber markets for certified wood, and certified MFL landowners typically take great pride knowing that their stewardship of the forest holds up to rigorous third-party sustainability standards. More information can be found on the MFL Certified Group page.
Documents available for stakeholder input:
Document Title: Forest Tax Law Handbook HB2450.5
Contact Person: Skya Rose Murphy
Due Date: 3/10/2023
For detailed description of document updates see: https://dnr.wisconsin.gov/topic/forestplanning/publiccomment
Welcome New MFL Owners
Each year on January 1, new Managed Forest Law (MFL) enrollments become active. This new year brings us more than 1,400 new MFL enrollments. Many of these are re-enrollments, but nearly one-third are for brand-new landowners to the MFL Program. The DNR is grateful to the landowners that re-enrolled, humbled by their renewed commitment to sound forestry, and extends a hearty welcome to all the newcomers. Continue reading “Welcome New MFL Owners”
MFL Mandatory Practice Reminder
What’s new in the new year? Maybe a new opportunity to manage your forest. Management practices in the Managed Forest Law program (MFL) may be “mandatory” or “non-mandatory.” Mandatory practices are the forest management practices required to meet the goals of the MFL program and practice sound forestry. It is important to everyone that these practices get completed, and that tax law gets landowners’ attention early when there’s a mandatory practice to complete.
Each year in the second or third week of January, thousands of MFL landowners receive reminder letters for mandatory practices scheduled in their MFL forest management plan for completion within the next two years. Under MFL, mandatory practices are “due” at the end of the calendar year in which they are scheduled. Here, “due” means you must have started your practice and be in touch with your Tax Law Forestry Specialist regarding your plan to complete it. Recognizing that completing the mandatory practice can be a long process, reminder letters are sent out two years before the practice is due. If the landowner has not taken AND communicated any action toward practice completion, a second reminder letter is sent one year before the practice is due. Continue reading “MFL Mandatory Practice Reminder”
External Forest Certification Audit Results
Were you one of the lucky few that got a visit from the audit team last summer? If so, thank you! By agreeing to showcase your forest management, you make the continued third-party certification of the MFL Group possible. The auditors, who visit forest management operations all over the country and globally, make the annual trip to visit Managed Forest Law (MFL) landowners here in Wisconsin and are consistently impressed by your stewardship, commitment and knowledge of your MFL property. Continue reading “External Forest Certification Audit Results”
2021 Wisconsin Act 230 Makes Changes To Managed Forest Law Program
The legal requirements of the Managed Forest Law program have changed, allowing additional flexibilities to landowners and clarifying the administration of the program by the Department of Natural Resources (DNR).
Governor Evers signed 2021 Wisconsin Act 230 into law on April 8, 2022, putting the following changes to chapter 77, Wis. Stats. into effect:
- The 20-acre minimum enrollment requirement may now be comprised of two 10-acre portions that are not contiguous to each other if they are on a tract of land under the same ownership*
- Buildings and improvements on Managed Forest Law property are allowed if used exclusively for storage*
- Additions to existing parcels of any size are allowed if certain eligibility requirements are met*
- Leasing on Managed Forest Law land is clearly allowed
- Voluntary withdrawal from the Managed Forest Law program is exempt from tax or fee for a public purpose to a city, village or town that is the taxing jurisdiction
*Changes effective as of April 16, 2016
The act also clarifies:
- The instances when the DNR is or is not required to assess a withdrawal tax and fee
- The DNR’s authority to provide flexibility for large ownerships (1,000 acres or more) of Managed Forest Law land, allowing for alternative management plan requirements
- What constitutes a material change to the terms of the order
Read the updated statute, chapter 77, Wis. Stats., on the Wisconsin Legislature’s website.
Thank you for your interest in the Managed Forest Law program.
Tax Law Handbook Updated
The Wisconsin Department of Resources (DNR) Division of Forestry’s Tax Law Section recently updated its Tax Law Handbook.
The Tax Law Handbook instructs staff and professional partners, including Cooperating Foresters and Certified Plan Writers, on implementing statutes and rules at a specifically technical level.
Program overview and reference information, compliance procedures for mandatory practices, and voluntary compliance agreements were updated, revised and posted for public comment for 21 days ending Jan. 19, 2022.
View the final updated Forest Tax Law Handbook.
The DNR considered each comment received and valued stakeholder input. As a result of stakeholder comments, no changes were made. Tax law staff sent a response email to each person that commented.
Fifteen written comments were received from 14 individuals. Most of the comments (13 of 15) were regarding the Mandatory Practice Compliance Procedures changes in Chapter 601, focusing on introducing a three-year limit for practices to have a status of services accepted, meaning professional forestry services are secured, and why it might be problematic due to difficult harvests and lack of markets.
Nevertheless, the comments received described instances and provided examples of DNR’s flexibility despite difficult sales and lack of markets. The DNR remains flexible in maintaining communicative and cooperative landowners in compliance.
There is a limit on how long practices could use a status of services accepted to keep remain compliant.
With an active cutting notice, there is no limit on how long practices can be compliant. A cutting notice is generally required when merchantable trees are cut on Managed Forest Law (MFL) or Forest Crop Law (FCL) land.
Information on cutting notices is available here.
The DNR will renew cutting notices as long as the landowner communicates with the department and has a credible plan to complete the practice in a reasonable amount of time.
Learn more about other Division of Forestry stakeholder input opportunities.
Input Invited on Forest Tax Law Handbook Updates
The DNR Division of Forestry prioritizes soliciting stakeholder input on division documents. As a division, we are committed to informing and involving our stakeholders in the development and review of materials that guide our programs. Inviting stakeholders to provide input is not only good customer service, it also creates opportunities to identify potential concerns and unforeseen impacts, understand diverse perspectives and determine the level of stakeholder support for division documents. To review and provide feedback on a document, go to the DNR Forestry Public Comment webpage here.
DOCUMENT AVAILABLE NOW FOR STAKEHOLDER INPUT:
Document Title: Forest Tax Law Handbook HB2450.5
Contact Person: Skya Rose Murphy, skyar.murphy@wisconsin.gov or 608-843-1551
Due Date: June 4, 2021
For a detailed description of document updates, visit the webpage here.
Tax Law Strategic Plan Released
The Wisconsin Department of Natural Resources – Division of Forestry’s Tax Law Section has released their strategic plan developed to further meet the Division of Forestry’s Strategic Direction 2017-2022 intent to “… continue to improve administration of the Tax Law programs, focusing on a new service model which will consolidate tax law work into fewer positions and develop expertise in staff.”
The new strategic plan focuses on five goals with associated objectives designed to guide section efforts to increase completion of sound forest management through landowner engagement, cooperator commitment and staff expertise.
This plan does not include the specific tactics that will be utilized to achieve the objectives and strategies. The Tax Law Section will be soliciting feedback from the Wisconsin Private Forestry Advisory Committee (WPFAC) and other key stakeholders to develop and finalize an implementation plan to be released later this fall. That plan will detail tactics and tools to achieve specific objectives affiliated with the five goals.
We are excited and ready to work collaboratively with our customers and partners to move the tax law program forward and better serve the people of Wisconsin and their resource. Please direct questions to R.J. Wickham, Tax Law Section Chief at Richard.Wickham@Wisconsin.gov or 920-369-6248