2005 House Bill 5454 / 2006 Public Act 382

Commercial forestry incentive package

Introduced in the House

Nov. 29, 2005

Introduced by Rep. Kevin Elsenheimer (R-105)

To revise the tax break repayment provisions on forestland removed from the commercial forest act program, which authorizes lower property taxes of $1.10 per acre on commercial forestland on which the owner gives the public access for recreation. The bill would replace a more complex tax repayment formula for withdrawn property with a simple requirement to repay the tax savings from the past 15 years. It would also require landowners who signed up for the tax break since 1995 to provide documentation that public access to the land for hunting and fishing is possible. This is part of a commercial forestry incentive package comprised of Senate Bills 912 to 919 and House Bills 5453 to 5468 and 5462.

Referred to the Committee on Conservation, Forestry, and Outdoor Recreation

Feb. 3, 2006

Reported without amendment

With the recommendation that the substitute (H-1) be adopted and that the bill then pass.

Feb. 7, 2006

Substitute offered

To replace the previous version of the bill with one that revises details but does not change the substance of the bill as previously described.

The substitute passed by voice vote

Amendment offered by Rep. Matthew Gillard (D-106)

To require all landowners who get the tax break, not just those who signed up for it since 1995, to provide documentation that public access to the land for hunting and fishing is possible.

The amendment failed 49 to 56 (details)

Feb. 8, 2006

Passed in the House 66 to 39 (details)

To revise the tax break repayment provisions on forestland removed from the commercial forest act program, which authorizes lower property taxes of $1.10 per acre on commercial forestland on which the owner gives the public access for recreation. The bill would replace a more complex tax repayment formula for withdrawn property with a simple requirement to repay the tax savings from the past 10 years. It would also require landowners who signed up for the tax break since 1995 to provide documentation that public access to the land for hunting and fishing is possible.

Received in the Senate

Feb. 9, 2006

Referred to the Committee on Agriculture, Forestry, and Tourism

May 23, 2006

Reported without amendment

With the recommendation that the substitute (S-1) be adopted and that the bill then pass.

Substitute offered

To replace the previous version of the bill with one that increases the CFR alternative "specific tax." See Senate-passed bill for details. This version does not include the requirent for landowners who signed up for the tax break since 1995 to provide documentation that public access to the land for hunting and fishing is possible, because HB 5455 now has language addressing this).

The substitute passed by voice vote

Passed in the Senate 32 to 5 (details)

To increase the specific tax rate on commercial forestland from $1.10 per acre to $1.20 per acre in 2007, to $1.25 in 2012, and by an additional 5-cents every five years thereafter. Also, to increase the State's payment in lieu of taxes on commercial forestland (currently $1.20 per acre) by five cents in 2012, and by an additional 5-cents every five years thereafter. The bill also to revise the tax break repayment provisions on forestland removed from the commercial forest act program, which authorizes lower property taxes of $1.10 per acre on commercial forestland on which the owner gives the public access for recreation. The bill would replace a more complex tax repayment formula for withdrawn property with a simple requirement to repay the tax savings from the past seven years.

Received in the House

May 23, 2006

May 30, 2006

Failed in the House 7 to 95 (details)

To concur with a Senate-passed version of the bill. The vote sends the bill to a House-Senate conference committee to work out the differences.

July 12, 2006

Received

Received in the Senate

July 26, 2006

In the House

Sept. 13, 2006

Passed in the House 105 to 0 (details)

To adopt a compromise version of the bill reported by a House-Senate conference committee. This increases the alternative property taxes on forestland in the commercial forest act program from $1.10 per acre to $1.20 per acre, and then an additional five-cents every five years. It does not require landowners who signed up for the tax break since 1995 to provide documentation that public access to the land for hunting and fishing is possible, but as under current law, prohibits them from denying access if it is possible to gain access to the land without trespassing on another parcel.

In the Senate

Sept. 14, 2006

Passed in the Senate 32 to 5 (details)

Signed by Gov. Jennifer Granholm

Sept. 26, 2006