Forest Crop Law

The Forest Crop Law, which was enacted in 1927, closed enrollment on January 1, 1986. It allows landowners to pay taxes on timber only after harvesting, or when the contract is terminated. It has promoted and encouraged long-term investments as well as the proper management of woodlands.

Current enrollment is about 2,500 landowners with about 359,000 acres. Renewal is not permitted. A landowner may enter his or her land into the Managed Forest Law (MFL) program, which replaced both the FCL program and the former Woodland Tax Law. Early conversion into MFL is also available.

Conditions

• Current in property tax payment
• At least 40 acres of adjoining forest land
• 25- or 50-year contract length
• Public access for fishing and hunting activities
• Management schedule
• No dwelling structures permitted

Obligations

• Follow management schedule
• Pay 10 cents annual tax per acre if enrolled before 1972 (20 cents for special class), $1.66 per acre if enrolled after 1972
• Open land to the public for hunting and fishing purposes
• Apply sound forest management practices
• File notice of intent to cut before harvesting
• Pay severance tax based on stumpage value following harvest
• Report accurate volumes
• Apply post-harvest treatment
• Permit inspections
• Permit public hunting and fishing
• Pay termination tax based on the stumpage value of the standing timber should the owner decline to enter MFL at the expiration of contract

Benefits

• Low regular property tax
• Deferred tax until after harvest
• Protection against property tax hike
• Predictable property tax, thus allowing planning for payment schedule
• Technical assistance
• Management schedule
• Long-term investment
• Encourages woodland expansion
• Protection against overcutting

Withdrawal Tax

The landowner is liable to pay a withdrawal tax for early withdrawal and/or for failure to follow the terms of the contract.