Restoration
As a result of Act 358, landowners may have a period of time in which their land does not meet productivity requirements if they have a restoration plan in place. Section NR 46.215 was added to outline when restoration may be required or offered as a solution when a parcel no longer meets productivity requirements defined in s. 77.82 (1) (a) 2., before land is withdrawn from the program, without tax and fee. If it is possible for the parcel to resume productivity through restoration within a reasonable timeframe and it is an economically feasible solution, restoration practices will be required and the management plan will be amended. Additional requirements were added in s. NR 46.17 (4) for land that has been withdrawn for a failure to meet productivity requirements. This change makes land withdrawn for productivity or sustainability reasons ineligible for re-entry unless the department determines there has been a change that would allow the land to meet productivity requirements in s. NR 46.18 (2) (d) since the time of withdrawal. This change reduces the amount of land that can be re-entered in the program if the landowner is unable or unwilling to restore the land to meet density requirements needed to establish merchantable timber. This reduces the burden on the local units of government who would otherwise receive back taxes for land that is removed from the program. Cutting Notices
2015 Wisconsin Act 358 added categories of individuals who can submit a cutting notice without department approval. Sections NR 46.10 and 46.185 clarify requirements for individuals to be able to submit a cutting notice without department approval. Such individuals will have to certify on the cutting notice form that they meet the requirements of submitting a cutting notice without department approval, and if the cutting notice is complete and adheres to sound foresty and the management plan and the landowner does not request department approval, then department approval is not required. For all other situations department approval is required. In addition to changes relating to who can submit a cutting notice without approval, long-standing policy was also incorporated allow cutting notices to be renewed if no significant change has occurred, the cutting will occur within a reasonable timeframe and the submitter is in contact with the department. This aleviates burden on an industry where harvesting contracts are often more than one year long.
Closed Land
2015 Act 358 increases the amount of acreage a landowner can close to public access to 320 acres per landowner, per municipality. Changes were made in s. NR 46.19 to allow for this and remove differences between lands enrolled before or after 2004 as those were also removed with Act 358. A long-standing policy regarding the signing of closed or unenrolled lands was also incorporated into rule under s. NR 46.21 (2) (c). It provides that if a landowner has open-MFL surrounded by other land they own that is not open to public access and decides to use “no trespassing” or similar signs on their lands that are not open to public access, that landowner is required to include information on the signs to show how to access the open-MFL lands. Leasing
Clarification on eligible leases and agreements was added in s. NR 46.17. Landowners may enter into any lease or agreement if it does not conflict with the program. Transfer of Ownership
2015 Act 358 allows landowners to sell or otherwise convey any amount of MFL land. After being notified of a land sale, the department will evaluate land retained and land conveyed to determine MFL eligibility. If the conveyed land does not meet eligibility requirements because it exceeds the non-productive requirement, the landowner can use the productivity/sustainability withdrawal, without tax and fee, to resume compliance with the productivity standards if the land sold/conveyed meets parcel size requirements after the withdrawal. If after the withdrawal, the rest of the parcel does not meet parcel size requirements, the remaining land will be withdrawn with a tax and fee. This same evaluation will be used for land retained after a land conveyance, if any. If land conveyed or retained does not meet size requirements that land will be withdrawn with a tax and fee. For land that is conveyed from a large ownership, the department will transfer the land if it meets parcel size requirements established in s. 77.82 (1) (a) 2., Stats., and the new owner will have one year to develop a management plan and determine if any land needs to be withdrawn due to productivity issues. 6. Summary and comparison of federal regulations:
There are no known federal rules which apply to stumpage rates or Managed Forest Law petitions.
7. Comparison of Adjacent States:
Checks with the surrounding states of Minnesota, Michigan, Iowa and Illinois indicate that while they offer some type of incentive program to forest landowners, none of the states have similar forestry practice requirements.
8. Summary of factual data and analytical methodologies
9. Analysis and supporting documentation used to determine effect on small business or in preparation of an economic impact analysis:
10. Effect on small business:
11. Agency Contact Person:
Amanda Koch - Tax Law Policy Specialist
Wisconsin Department of Natural Resources, Division of Forestry
101 South Webster Street, P.O. Box 7921, Madison, WI 53707-7921
SECTION 1. NR 46.01 is amended to read:
NR 46.01 Purpose. It is the purpose of this chapter to interpret, enforce and administer the provisions of the Wisconsin statutes pertaining to the forest croplands program, the woodland tax law program the managed forest land program, and any other tax programs concerning private forest lands.
SECTION 2. NR 46.02 (25) is amended to read:
NR46.02 (25) “Wood products” or “forest products” means those items listed on the current forest crop law stumpage values for severance tax.
SECTION 3. NR 46.03 is repealed and recreated to read:
NR46.03 Petitions or applications. The forest cropland program is no longer open for enrollment or renewal.
** NOTE TO LRB: Start of Subch. I**
SECTION 4. NR 46.08 is repealed.
SECTION 5. NR 46.09 (Note) is amended to read:
NR 46.09 Note: Forms for withdrawal must be filed by the deadline at: Bureau of Forestry, Forest Tax Section, PO Box 7963, Madison, WI 53707. Forms may be obtained at no charge by writing the same address online at dnr.wi.gov, search keyword “FCL”.
SECTION 6. NR 46.10 is created to read:
NR 46.10 Forestry practices. (1) Incomplete cutting notices. Incomplete cutting notices shall be returned.
(2) Cutting notices that require department approval. Department approval of a submitted complete cutting notice is required prior to harvest if any of the following apply:
(a) The cutting notice is not consistent with sound forestry.
(b) The owner requests on the form that the department review the cutting notice.
(c) The person who submits the cutting notice does not certify on the form that they meet one of the requirements provided in s. 77.06 (1) (b) 2. Stats. ** NOTE TO LRB: Start of Subch. III**
SECTION 7. NR 46.15 (1m) is repealed and recreated to read:
NR 46.15 (1m) “Building” means any structure that is used for or able to be used for sheltering people, machinery, animals, or plants, for storing property, or for gathering, working, office, parking, or display space. Camping trailers and recreational vehicles that are not connected to utilities or set upon a foundation, in whole or in part, for more than a temporary time and that are used as temporary living quarters for recreation, camping, or seasonal purposes are not considered buildings for the purpose of the managed forest law program.
SECTION 8. NR 46.15 (2) is amended to read:
NR 46.15 (2) “Capable of producing 20 cubic feet of merchantable timber per acre per year” means land determined by the department to be capable of such production according to normal yield tables published by the North Central Forestry Experiment Station and the Lake States Forest Experiment Station and meeting one of the following size and minimum density classifications based on site conditions and other guidelines specific to Wisconsin cover types.
Stand Size Classes | Tree Diameter Ranges at 4.5 Feet From Ground Level | Minimum Density |
Seedlings | 0_−1_ | 200 trees per acre |
Saplings | 1_−5_ | 100 trees per acre |
Saplings | 1_−5_ | 100 trees per acre |
Sawtimber | 9_+*, 11_** | 1,300 board feet per acre |
*For conifer species
**For other species
SECTION 9. NR 46.15 (15m) is created to read:
NR 46.15 (15m) “Full-time profession,” as provided in s. 77.86 (1)(b)2., Stats., and as applicable in this subchapter, means full-time employment by a business or company in a position requiring specialized knowledge or training. SECTION 10. NR 46.15 (16) is amended to read:
NR 46.15 (16) “Grazing” means the feeding on living plants by domestic animals except by animals used during timber cutting operations as a silvicultural tool to accomplish a sound forestry practice, as approved by the department.
SECTION 11. NR 46.15 (17g), (17r), (20s), (21m), (26r), (30m), and (32m) are created to read:
NR 46.15 (17g) “Hunting blind” means a structure that is used exclusively for hunting.
