HOUSE BILL No. 4969

September 14, 2011, Introduced by Rep. Foster and referred to the Committee on Natural Resources, Tourism, and Outdoor Recreation.

A bill to amend 1994 PA 451, entitled

"Natural resources and environmental protection act,"

by amending sections 51102, 51103, 51108, and 51115 (MCL 324.51102,

324.51103, 324.51108, and 324.51115), sections 51102 and 51115 as

added by 1995 PA 57, section 51103 as amended by 2006 PA 383, and

section 51108 as amended by 2008 PA 299, and by adding part 514.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 51102. The department shall establish and maintain

commercial forests and may promulgate and enforce rules as

necessary to accomplish the intent and purpose of this part. ~~All~~

~~expenses incurred and staff employed to implement this part shall~~

~~be with the approval of the state administrative board.~~

Sec. 51103. (1) The owner of at least 160 acres, composed of

parcels of not less than 40 contiguous acres or a survey ~~unit~~ units

consisting of 1/4 of 1/4 of a section of forestland located within

this state may apply to the department to have that forestland

determined to be a commercial forest under this part. However, the

owner of at least 40 contiguous acres or a survey unit consisting

of 1/4 of 1/4 of a section of forestland located within this state

that was commercial forestland under this part on the effective

date of the 2011 amendments to this section may remain as

commercial forestland as long as the land is otherwise in

compliance with this part. For purposes of this subsection,

"contiguous" means land that touches at any point. Even if portions

of commercial forestland are contiguous only at a point, the

privilege of hunting and fishing as provided in section 51113 shall

not be denied for any portion of the land. ~~as provided in section~~

~~51113.~~ The existence of a public or private road, a railroad, or a

utility right-of-way that separates any part of the land does not

make the land noncontiguous.

(2) To be eligible for determination as a commercial forest,

forestland shall be capable of all of the following:

(a) Producing not less than 20 cubic feet per acre per year of

forest growth upon maturity.

(b) Producing tree species that have economic or commercial

value.

period of time.

(3) An application for classification as commercial forest

shall be submitted on a form prescribed by the department. The

application shall be postmarked or delivered not later than April 1

to be eligible for approval as commercial forest for the following

tax year. In addition to any information that the department may

reasonably require by rule, the applicant shall provide all of the

following to the department:

(a) A nonrefundable application fee in the amount of $1.00 per

acre or fraction of an acre, but not less than $200.00 and not more

than $1,000.00. The department shall remit the application fee to

the state treasurer for deposit into the fund.

(b) A legal description and the amount of acreage considered

for determination as a commercial forest.

covering the forestland has been prepared and is in effect.

(d) A statement certifying that the owner of the forestland

owns the timber rights to the timber standing on the forestland.

(4) The department shall prepare and distribute to any person

desiring to apply for classification of forestland as commercial

forest under this part a brochure that lists and explains, in

simple, nontechnical terms, all of the following:

(a) The application, hearing, determination, declassification,

and prosecution process.

(b) The requirements of the forest management plan.

(5) Not later than 3 months after the effective date of the

~~2006~~ 2011 amendatory act that amended this section, the department

shall notify each county and township and all owners of forestland

that is classified as commercial forest under this part, who are on

record with the department, of the amendments to this part that

were enacted in ~~2006.~~2011.

~~(6) If an applicant is unable to secure the services of a~~

~~registered forester or a natural resources professional to prepare~~

~~a forest management plan, the department upon request shall prepare~~

~~the forest management plan on behalf of the owner of the forestland~~

~~and charge the owner a forest management plan fee not to exceed the~~

~~actual cost of preparing the forest management plan.~~

(6) ~~(7)~~ After an owner certifies to the department that a

forest management plan has been prepared and is in effect, a

violation of that forest management plan is a violation of this

part.

(7) Forest management plans that have been submitted to the

department are exempt from disclosure under the freedom of

information act, 1976 PA 442, MCL 15.231 to 15.246.

Sec. 51108. (1) An owner of a commercial forest may withdraw

his or her land, in whole or in part, from the operation of this

part upon application to the department and payment of the

withdrawal application fee and penalty, as provided in this

section.

(2) Except as otherwise provided by this section, upon

application to the department to withdraw commercial forestland

from the operation of this part, the applicant shall forward to the

department a withdrawal application fee in the amount of $1.00 per

acre with a minimum withdrawal application fee of $200.00 per

application and a maximum withdrawal application fee of $1,000.00

per application.

(3) Except as otherwise provided in this section, an

application to withdraw commercial forestland from the operation of

this part shall be granted upon the payment to the township

treasurer in which the commercial forestland is located of a

penalty. ~~For applications to withdraw commercial forestland filed~~

~~on or after September 27, 2007 in which the withdrawal penalty has~~

~~not been paid before the effective date of the amendatory act that~~

~~added subdivision (d), the~~ The withdrawal penalty shall be

calculated in the following manner:

(a) Multiply the number of acres of commercial forestland

withdrawn from the operation of this part by 1 of the following:

(i) For 2007, 1/2 of the valuation per acre for the county in

which the forestland is located.

(ii) Beginning in 2008, and for each subsequent year, the

number described in subparagraph (i) adjusted annually by the

inflation rate for each year after 2007.

(b) Multiply the product of the calculation in subdivision (a)

by the average millage rate levied by all townships, excluding

villages, in the county in which the property is located.

by the number of years, to a maximum of 7 years, in which the

property withdrawn from the operation of this part has been

designated as commercial forestland under this part.

(d) Multiply the product of the calculation in subdivision (c)

by the following:

(i) 0.2, if the commercial forestland is located in Luce

county.

(ii) 0.3, if the commercial forestland is located in Grand

Traverse, Manistee, Ottawa, or Wexford county.

(iii) 0.4, if the commercial forestland is located in

Charlevoix, Chippewa, Emmet, Gladwin, Leelanau, Midland, Oscoda, or

Tuscola county.

(iv) 0.5, if the commercial forestland is located in Cheboygan,

Delta, Mackinac, Oceana, Otsego, or Schoolcraft county.

(v) 0.6, if the commercial forestland is located in Alcona,

Alger, Allegan, Alpena, Arenac, Barry, Bay, Benzie, Berrien,

Branch, Calhoun, Cass, Clare, Clinton, Crawford, Dickinson, Eaton,

Genesee, Gogebic, Gratiot, Hillsdale, Houghton, Huron, Ingham,

Ionia, Iosco, Iron, Isabella, Jackson, Kalamazoo, Kalkaska, Kent,

Lapeer, Lenawee, Livingston, Macomb, Marquette, Mecosta, Monroe,

Montcalm, Montmorency, Muskegon, Newaygo, Oakland, Ogemaw, Osceola,

Presque Isle, Roscommon, Saginaw, St. Clair, St. Joseph, Sanilac,

Shiawassee, Van Buren, Washtenaw, or Wayne county.

(vi) 0.7, if the commercial forestland is located in Antrim,

Baraga, Mason, or Menominee county.

(vii) 0.8, if the commercial forestland is located in Keweenaw,

Lake, Missaukee, or Ontonagon county.

(4) The department shall publish all of the following on its

website:

(a) The calculation described in subsection (3)(a)(i) for each

county.

(b) The adjusted value and the inflation rate described in

subsection (3)(a)(ii) for each county.

for each county.

(5) Until 1 year after the effective date of the 2011

amendatory act that amended this section, the owner of commercial

forestland is not subject to a withdrawal penalty if all of the

following occur:

(a) The owner of commercial forestland withdraws his or her

land from the operation of this part as provided in this section.

(b) The former commercial forestland is placed on the

assessment roll in the local tax collecting unit in which the

former commercial forestland is located.

is granted an exemption for that land from the tax levied by a

local school district for school operating purposes under section

7jj of the general property tax act, 1893 PA 206, MCL 211.7jj[1].

The owner shall submit to the department a copy of the recorded

receipt of tax exemption on a form provided by the department by

December 31 of the year in which the land is withdrawn from this

part.

(6) If a transfer of title causes commercial forestland to no

longer meet the minimum acreage requirements of this part, the

commercial forestland shall be withdrawn from this part. However,

the owner of commercial forestland is not subject to a withdrawal

penalty if the owner complies with all of the conditions described

in subsection (5)(a) to (c).

(7) ~~(5)~~ An application to withdraw commercial forestland from

the operation of this part that meets 1 or more of the following

requirements shall be granted without payment of the withdrawal

application fee or penalty under this section:

(a) Commercial forestland that has been donated to a public

body for public use prior to withdrawal.

(b) Commercial forestland that has been exchanged for property

belonging to a public body if the property received is designated

as a commercial forest as determined by the department.

use.

(8) An application to withdraw commercial forestland from the

operation of this part that meets all of the following requirements

shall be granted without payment of the withdrawal penalty under

this section:

(a) Evidence is submitted to the department that the land

meets the legal requirements to be exempt from ad valorem property

tax in the tax year in which the application is submitted and

approved.

(b) The application to withdraw is submitted to the department

by the same landowner that submitted the application to designate

the land commercial forestland.

treasurer for the payments made by the state treasurer to the

county treasurer, as provided in section 51106(1), for each tax

year the land was commercial forestland.

(9) ~~(6)~~ The department shall remit the withdrawal application

fee paid pursuant to subsection (2) to the state treasurer for

deposit into the fund. The penalty received by the township

treasurer under subsection (3) shall be distributed by the township

treasurer in the same proportions to the various funds as the ad

valorem general property tax is allocated in the township, except

as provided by section 51109(2).

(10) ~~(7)~~ If an application to withdraw commercial forestland

is granted, the department shall immediately notify the applicant,

the supervisor of the township, and the register of deeds of the

county in which the lands are located of the action and shall file

with those officials a list of the lands withdrawn.

(11) ~~(8)~~ As used in this section:

(a) "Inflation rate" means the lesser of 1.05 or the inflation

rate as defined in section 34d of the general property tax act,

1893 PA 206, MCL 211.34d.

(b) "Valuation" means the market value as determined by the

state tax commission.

Sec. 51115. (1) The transfer of title of forestland subject to

this part ~~shall~~ does not affect that forestland's status as a

commercial forest if the forestland continues to meet all of the

eligibility requirements under this part. If the purchaser desires

to withdraw his or her forestland from this part, the purchaser

shall withdraw that forestland pursuant to section 51108. If the

forestland's eligibility to be a commercial forest is affected by

the transfer of title, the department shall determine which

forestlands may remain under this part and which forestlands must

be withdrawn or declassified.

(2) If the forestland's eligibility is affected by the

transfer of title because the forestland does not meet the minimum

acreage required by this part and the owner of the forestland does

not meet the requirements of section 51108(6), then the forestland

shall be withdrawn pursuant to section 51108(3).

(3) ~~(2)~~ A document that transfers any interest in commercial

forestlands shall state on the face of the document that "this

property is subject to part 511, the commercial forest part of the

natural resources and environmental protection act". Failure to

comply with this subsection does not affect the status of the land

as commercial forestland.

(4) ~~(3)~~ Not later than 30 days after the county equalization

office receives notice of a transfer of title or the transfer of

any interest in a land contract concerning the commercial

forestland, the ~~owner~~ county equalization office shall notify the

department in writing of the transfer or ownership change.

PART 514 QUALIFIED FOREST PROPERTIES

Sec. 51401. As used in this part:

(a) "Commercial harvest" means a harvest conducted by a

commercial logger, with a minimum of 5 cords of wood per acre.

(b) "Converted by a change in use" means that term as defined

in the qualified forest property recapture act.

(d) "Energy crop" means short rotation woody crops such as

hybrid poplar and willow, which may be eligible for designation as

qualified forest property if they are established on nonstocked

forestland with less than 10% forest cover or previously cleared

land, and the woody crops are planted at 4,000 to 6,000 stems or

cuttings per acre.

(e) "Forest management plan" means the plan described in

section 51414 for sustainable forest management.

(f) "Forest products" includes, but is not limited to, timber,

pulpwood-related products, and energy crops.

(g) "Fund" means the qualified forest fund created in section

51418.

(h) "General property tax act" means the general property tax

act, 1893 PA 206, MCL 211.1 to 211.155.

(i) "Harvest records" means a report of timber products

harvest that is completed at time of harvest and submitted to the

department and includes, but is not limited to, volume of timber

harvested.

(j) "Owner" means all legal owners of the qualified forest

property.

(k) "Productive forest" means real property capable of growing

not less than 20 cubic feet of wood per acre per year. However, if

property has been considered productive forest, an act of God that

negatively affects that property shall not result in that property

not being considered productive forest.

(l) "Qualified forest property" means a parcel of real property

that meets all of the conditions as described in section 51416.

(m) "Qualified forest property recapture tax act" means the

qualified forest property recapture tax act, 2006 PA 379, MCL

211.1031 to 211.1036.

(n) "Qualified forester" means a registered forester, a

forester certified by the society of American foresters, a forest

stewardship plan writer, or other forester qualified by the state

forester and posted on the department's internet website.

(o) "Tax exemption" means a tax exemption for qualified forest

property as provided for in this part and the general property tax

act.

Sec. 51402. An owner of productive forest that meets the

qualifications under this part and submits the information required

under section 51403 may apply to have his or her property

designated as a qualified forest property and receive an exemption

from property taxes as allowed under the general property tax act.

Sec. 51403. (1) An owner of productive forest property that

wishes to have the property designated as qualified forest property

shall submit an application to the department and the local tax

collecting unit on a form provided by the department. The submittal

to the department shall be accompanied by a program fee of $200.00.

Program fees collected under this section shall be forwarded to the

state treasurer for deposit into the fund. The application shall

contain all of the following:

(a) A signed statement from a qualified forester who prepared

a forest management plan for the forest property, on a form created

by the department, indicating that the plan meets the requirements

of this part, that the property meets the requirements of this

part, and that any building on the property meets the requirement

of section 51417.

(b) A signed statement from the owner of the property who is

applying for the tax exemption indicating that he or she

understands the requirements of this part, agrees to meet the

requirements of this part, agrees to follow his or her forest

management plan, and is the owner of the property.

the property or of the parcel on which the property is located.

(d) If there is a building on the property, a map that shows

the location and size of the building and a listing of the

amenities described in section 51417.

(e) The total amount of acreage being applied for a tax

exemption.

(2) The local tax collecting unit shall apply the tax

exemption to the property if the application contains the

information required in subsection (1). The local tax collecting

unit is not required to apply a tax exemption if the owner of the

property is different from the applicant who submitted the

application or the parcel number or description does not match the

parcel number or description on the local tax collecting unit's

records.

(3) When the owner has received the tax exemption from the

local tax collecting unit, the owner shall file a receipt of the

tax exemption with the appropriate register of deeds on a form

provided by the department and send a copy of the recorded form to

the local tax collecting unit and to the department.

Sec. 51404. For the length of the tax exemption, the owner

shall retain the current management plan, the signed statement from

the qualified forester under section 51403(1)(a), audits of the

forest management plan, harvest records, recorded copy of receipt

of the tax exemption, and a map that shows the location and size of

any buildings and a listing of the amenities as described in

section 51417. The owner shall make the documents available to the

department and to the local tax collecting unit upon request.

Sec. 51405. (1) In order to continue to receive a tax

exemption, the owner shall submit to the department and the local

tax collecting unit a reassessment application 10 years after the

date of enrollment. The submittal to the department shall be

accompanied by a program fee of $200.00. Program fees collected

under this section shall be forwarded to the state treasurer for

deposit into the fund. The application shall be on a form provided

by the department and shall contain a signed statement from a

qualified forester that an audit has been conducted of the forest

management plan and that the property is being managed according to

the plan, that the plan is current, that the property continues to

meet the requirements of this part, that any building on the

property meets the requirement of section 51417, and that harvest

reports have been submitted as appropriate.

(2) If an owner fails to submit a reassessment application 10

years after the date of enrollment, the local tax collecting unit

shall notify the owner, in writing, that the owner must submit a

reassessment application within 60 days of the date of the notice

or the tax exemption will expire. If the local tax collecting unit

does not receive a reassessment application within this 60-day

period, the local tax collecting unit shall remove the property tax

exemption from the property according to the requirements of the

qualified forest property recapture tax act and shall notify the

state treasurer that the owner is liable for the recapture tax

under the qualified forest property recapture tax act.

Sec. 51406. The owner shall have an audit of the

implementation of his or her forest management plan every 10 years

after the date of enrollment to determine if management activities

are being conducted according to the plan and that the plan and the

property still meet the requirements of this part. The audit shall

be conducted by a qualified forester.

Sec. 51407. (1) Within 45 days of the audit under section

51406, the qualified forester shall report on a form provided by

the department to the local taxing unit, the department, and the

department of treasury if the audit reveals any of the following:

(a) The property is not being managed according to the forest

management plan including harvesting and thinning as directed by

the plan.

(b) The forest management plan was not produced as required by

this part in order to receive a tax exemption.

this part.

(d) An audit was not conducted in the time frames required by

this part.

(e) A building exists on the property in violation of

eligibility requirements under this part.

(f) All or a portion of the property has been converted by a

change in use so that it does not meet the requirements of this

part.

(g) A harvest occurred without a harvest record being

submitted to the department.

(h) A copy of the receipt of tax exemption was not filed with

the register of deeds or a recorded copy was not provided to the

local tax collecting unit and the department.

(2) The qualified forester shall provide the owner 30 days to

provide documentation of actions taken to resolve any issues of

noncompliance before reporting any violations as required in

subsection (1).

(3) If a violation under this section is reported to the local

tax collecting unit, the local tax collecting unit shall rescind

the tax exemption on the property and notify the department of

treasury and the department.

(4) The department of treasury shall levy the recapture tax

and penalty, if applicable, on the property owner as described in

the qualified forest property recapture tax act and the general

property tax act.

Sec. 51408. (1) The department may at any time conduct an

audit of any property receiving a tax exemption and shall be

provided access to the property for this purpose by the owner upon

request. The department shall notify the owner at least 45 days

prior to conducting the audit. The owner shall submit the required

documents within 30 days of receipt of the request of the

department. A copy of the completed audit shall be returned to the

owner who shall retain the audit in his or her records.

(2) Within 45 days of the audit, the department shall report

to the local tax collecting unit, the department, and the

department of treasury if the audit reveals any of the violations

described in section 51407(1).

(3) The department shall provide the owner 30 days to provide

documentation of actions taken to resolve any issues of

noncompliance before reporting any violations as required in

subsection (2).

(4) If a violation as described in section 51407(1) is

reported to the taxing unit, the taxing unit shall rescind the tax

exemption on the property and notify the department of treasury and

the department.

(5) If the tax exemption is rescinded under subsection (4),

the department of treasury shall levy the recapture tax and

penalty, if applicable, on the property owner as described in the

qualified forest property recapture tax act and the general

property tax act.

(6) In performing audits of properties, the department shall

take into consideration whether the property has been third-party

certified or is enrolled in the tree farm program pursuant to AFF

2010-2015 standards of sustainability for forest certification

through the American tree farm system.

Sec. 51409. If a building is placed on the property after a

tax exemption is provided, the owner shall immediately notify the

local tax collecting unit on a form provided by the local tax

collecting unit and created by the department. Included in the

notification shall be a copy of a map that shows the location and

size of the building and a listing of the amenities as described in

section 51417. The local tax collecting unit shall determine if the

building is allowed under section 51417 and shall make the

necessary changes to the assessment of the property, which changes

shall be effective for the immediately succeeding tax year.

Sec. 51410. (1) If all or a portion of the property is

converted by a change in use, the owner shall immediately notify

the local tax collecting unit, the department, and the department

of treasury on a form created by the department.

(2) Upon receipt of notice under subsection (1), the local tax

collecting unit shall immediately rescind the tax exemption for the

property and shall place the property on the tax roll for the

immediately succeeding tax year.

(3) Upon receipt of notice under subsection (1), the

department of treasury shall immediately begin collection of the

recapture tax and penalty, if applicable, as provided for in the

qualified forest property recapture tax act and the general

property tax act.

Sec. 51411. The owner shall report any harvest conducted on

the property to the department and to the local tax collecting unit

on a form provided by the department. The harvest report shall

include, but is not limited to, the volume of timber harvested from

the property, the name and contact information of the person

conducting the harvest, the number of acres on which the harvest

occurred, and the date of the harvest. The report shall be

submitted to the department within 30 days after the harvest was

completed. The owner shall retain all harvest records.

Sec. 51412. (1) An owner may claim a tax exemption from

property taxes for not more than 640 acres of qualified forest

property in each local tax collecting unit.

(2) The local tax collecting unit shall exempt qualified

forest property from the collection of the tax as provided in the

general property tax act until the property is no longer qualified

forest property.

Sec. 51413. The department shall post on its internet website

each calendar year the annual volume of timber harvested on

qualified forest properties. The report shall be based upon the

harvest reports received from owners.

Sec. 51414. (1) The owner shall have a current forest

management plan prepared by a qualified forester. A forest

management plan shall include all of the following on a form

provided by the department:

(a) The name, address, and dated signature of each owner of

the property.

(b) The expiration date of the plan.

the property or of the parcel on which the property is located.

(d) A statement of the owner's forest management objectives,

which must include commercial timber production.

(e) A map, diagram, or aerial photograph that identifies both

forested and unforested areas of the property, using conventional

map symbols indicating the species, size, and density of vegetation

and other major features of the property.

(f) A narrative description of each management unit that

includes all of the following:

(i) Acreage, cover type, stand density, measured by basal area

or trees per acre, and age of main stand.

(ii) A measure of the site quality and productivity that shows

that the stand is capable of growing 20 cubic feet per acre per

year, such as site index or volume growth per acre per year.

(iii) A description of the silvicultural practices such as

shelterwood, seed tree, or selection employed to achieve the unit

objective and promote successful regeneration.

(g) A description of the forestry practices, including

harvesting, thinning, and reforestation, that will be undertaken,

specifying the approximate period of time before each is completed.

(h) A description of activities that may be undertaken for the

management of forest resources other than trees, including wildlife

habitat, watersheds, and aesthetic features.

(i) A summary table or spreadsheet of all stands listing their

prescribed practices, approximate treatment schedule, and dates of

accomplishment.

(j) A description of soil conservation practices that may be

necessary to control any soil erosion that may result from the

practices described pursuant to subdivisions (g), (h), and (i).

(k) A harvest schedule that includes a commercial harvest

within 30 years of receipt of the tax exemption. However, for an

owner transferring commercial forestland under part 511 to

qualified forest property under this part, if a qualified forester

determines that more than 30 years is needed for a viable

commercial harvest, the harvest schedule may extend beyond 30

years, but shall include a commercial harvest within 40 years of

receipt of the tax exemption.

(l) Any other relevant information required by the department.

(2) A forest management plan shall include a statement signed

by a qualified forester and notarized by a notary public that the

plan was prepared by the qualified forester.

(3) Once a commercial harvest has occurred, the forest

management plan for qualified forest property shall be updated to

manage the property for commercial timber harvests commensurate

with the forest cover on the property.

(4) If qualified forest property is negatively impacted by

weather, disease, or other act of God, a revised forest management

plan shall be written in accordance with this part.

Sec. 51415. In order for an owner to receive a tax exemption,

the owner shall agree to all of the following:

(a) Conducting of forest management practices as prescribed by

the forest management plan according to the time frames contained

in the plan.

(b) Subject to section 51414(1)(k), conducting of a forest

thinning or harvest as prescribed by the forest management plan

within 30 years after the receipt of the tax exemption. Subsequent

forest management plans shall provide for commercial harvests

commensurate with the forest cover on the property.

provided for in section 51406.

(d) Allowing the department to enter his or her property to

conduct an audit as provided for in section 51408.

(e) Submitting and retaining necessary forest management

plans, reports, audits, and signed statements as described in

section 51404.

Sec. 51416. (1) In order for a property to be considered for a

tax exemption, the property shall meet all of the following

requirements:

(a) Except as provided in subdivision (d), is not less than 10

contiguous acres in size, of which not less than 80% is productive

forest capable of producing forest products. Contiguity is not

broken by a road, a right-of-way, or property purchased or taken

under condemnation proceedings by a public utility for power

transmission lines if the 2 parcels separated by sale or

condemnation were a single parcel prior to the sale or

condemnation.

(b) Has no buildings located on the real property except as

provided in section 51417.

section 51414.

(d) If the property has a building as provided in section

51417, the property shall be not less than 20 acres in size.

(2) For a parcel receiving an exemption as qualified

agricultural property under the general property tax act and a tax

exemption under this part, the qualified forest portion of the

parcel shall be not less than 10 contiguous acres of which not less

than 80% is productive forest capable of producing forest products.

Sec. 51417. (1) Except as provided in this section, a building

developed for human residence is not allowed on qualified forest

property. Any building containing 5 or more of the following

characteristics is considered developed for human residence and the

parcel of property on which the building is situated, including the

septic system, is not eligible for a tax exemption:

(a) The building is 800 square feet or more in total area

using exterior dimensions of living space including each level, but

excluding porches, decks, or uninsulated screen porches.

(b) The building contains indoor plumbing including water and

sewer piped to either a municipal or septic system.

(d) The building has electrical service by connection to the

lines of a power company.

(e) The building has central heating or cooling, including

electric, wood, biofuels, or gas furnace or other heater with a

circulation system.

(f) The building is insulated using products designed for that

purpose.

(g) The building has telephone service linked to a landline.

(h) The building is attached to or has a separate garage, not

including buildings for vehicles used primarily for work or

recreation on the property.

(2) Any building containing fewer than 5 characteristics

listed in subsection (1) is eligible to be included on the

property. However, the building and 1 acre of property shall not

receive the tax exemption.

Sec. 51418. (1) The qualified forest fund is created within

the state treasury.

(2) The state treasurer may receive money or other assets from

any source for deposit into the fund. The state treasurer shall

direct the investment of the fund. The state treasurer shall credit

to the fund interest and earnings from fund investments.

(3) Money in the fund at the close of the fiscal year shall

remain in the fund and shall not lapse to the general fund.

(4) The department shall be the administrator of the fund for

auditing purposes.

(5) The department shall expend money from the fund, upon

appropriation, only to administer this part including to support

data management and forest property audits under this part.

Sec. 51419. (1) An owner of property receiving a tax exemption

under the general property tax act on the effective date of this

part shall be required to meet the harvesting requirements of this

part within 30 years from the effective date of this part and,

within 60 days after the effective date of this part, shall provide

to the department and the local taxing unit a signed statement from

a qualified forester as described in section 51403(1)(a).

(2) If an owner of property receiving a tax exemption as

qualified forest property under the general property tax act on the

effective date of this part does not wish to conduct a commercial

harvest, or the property is not capable of production of a

commercial harvest as required by this section, or if the

requirements of this part cause material burden to the landowner,

the landowner may petition to remove the tax exemption from the

property within 60 days after the effective date of this part. The

petition shall be on a form created by the department and shall be

sent to the department and the local tax collecting unit. Upon

receipt of that petition, the local tax collecting unit shall

rescind the tax exemption and place the property on the tax roll.

The property owner shall not be charged the recapture tax and

penalty as described in the qualified forest property recapture tax

act and the general property tax act.

Sec. 51420. (1) A person who violates this part is guilty of a

misdemeanor and subject to a fine of up to $1,000.00 per day.

(2) A person who knowingly makes a false statement,

representation, or attestation in applying for a tax exemption

under this part is guilty of a misdemeanor punishable by a fine of

not more than $1,000.00 per day for each day of violation.

Sec. 51421. A court may allow the department to recover

reasonable costs and attorney fees incurred in a prosecution

resulting in a conviction for a violation of this part.

Enacting section 1. This amendatory act does not take effect

unless Senate Bill No. ____ or House Bill No. 4970(request no.

02751'11 a) of the 96th Legislature is enacted into law.