SB-0917, As Passed Senate, May 23, 2006

SUBSTITUTE FOR

SENATE BILL NO. 917

     A bill to amend 1994 PA 451, entitled

"Natural resources and environmental protection act,"

(MCL 324.101 to 324.90106) by adding part 512.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

                               PART 512

       SUSTAINABLE FOREST CONSERVATION EASEMENT TAX INCENTIVES

Sec. 51201. (1) Notwithstanding section 51105, an owner of

commercial forestland that is subject to a sustainable forest

conservation easement is subject to an annual specific tax equal to

the annual specific tax levied under section 51105 less 15 cents

per acre. The specific tax described in this section shall be

administered, collected, and distributed in the same manner as the

specific tax levied in section 51105.

     (2) An application for sustainable forest conservation

easement tax incentives described in this part shall be submitted

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

postmarked or delivered to the department not later than April 1 to

be eligible for approval 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 $2.00 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 commercial forest fund

under section 51112.

     (b) A copy of the conservation easement covering the

forestland.

     (3) The owner of commercial forestlands subject to a

sustainable forest conservation easement is entitled to cut or

remove forest products on his or her commercial forestlands if the

owner complies with part 511 and the requirements of the

sustainable forest conservation easement.

     (4) If commercial forestland subject to a sustainable forest

conservation easement is used in violation of this part or the

sustainable forest conservation easement, the owner in addition to

any other penalties provided by law shall pay a penalty, per acre,

for each year in which the violation occurs equal to the difference

between the specific tax paid under this part and the specific tax

that would otherwise be paid under part 511. The specific tax

collected under this part shall be paid to the township treasurer

in which the commercial forestland is located. The penalty shall be

distributed by the township treasurer in the same manner as the

specific tax is distributed.

     (5) As used in this part:

     (a) "Commercial forestland" means commercial forestland that

is enrolled under part 511.

     (b) "Department" means the department of natural resources.

     (c) "Forestland" means that term as defined in part 511.

     (d) "Sustainable forest conservation easement" means a

conservation easement described in section 2140 on commercial

forestland that is approved by the department and meets all of the

following:

     (i) Is an easement granted in perpetuity to this state, a

political subdivision of this state, or a charitable organization

described in section 501(c)(3) of the internal revenue code, 26 USC

501, that also meets the requirements of section 170(h)(3) of the

internal revenue code, 26 USC 170.

     (ii) Covers commercial forestland of 40 or more acres in size.

     (iii) Provides that the forestland subject to the conservation

easement or the manager of the forestland subject to the

conservation easement is and continues to be certified under a

sustainable forestry certification program that uses independent

third party auditors and that is recognized by the department.

     (iv) Provides that the forestland subject to the conservation

easement provides for the nonmotorized recreational use of the

forestland by members of the public.