What would QFP save on your land?
The free Michigan Forest Tax Calculator uses your township’s actual school tax rate to estimate your yearly savings.
The Qualified Forest Program (QFP) lowers property taxes on privately owned forest land in exchange for managing it under a forest management plan. Your land stays private: you can post it “No Trespassing,” and no public access is required.
The benefits
- Lower yearly taxes. Enrolled land is exempt from local school operating taxes, typically 18 mills (less in some districts), minus a 2-mill yearly fee. The savings depend on your township’s tax rate, and for many owners they are substantial.
- Protection when the land changes hands. Normally a sale resets the taxable value toward market value. A buyer of enrolled land who signs a Qualified Forest Taxable Value Affidavit keeps the previous owner’s capped taxable value, as long as the land stays enrolled. This helps in estate planning and can make the land easier to sell.
Who qualifies
- At least 20 acres
- Parcels of 20 to 39.9 acres must be at least 80% forested; 40 acres or more, at least 50% forested
- “Forested” means land capable of growing 20 cubic feet of wood, or about 1/4 of a cord, per acre per year
- Cabins and homes are allowed. QFP exempts the land only, so school operating taxes still apply to the value of any buildings, and a building cannot reduce the forest cover below the minimum.
What it requires
- A forest management plan written by a qualified forester. In our experience the plan often pays for itself in tax savings within a year or two.
- A $50 application fee to the Michigan Department of Agriculture and Rural Development (MDARD)
- Applications are due by September 1 for the following tax year
- You agree to follow the plan. Planned harvests and forest practices must be done within six years of the first year scheduled in your plan, or the land loses the exemption.
- You report each timber harvest or forest practice to MDARD, including the volume and value harvested
- Plans can be changed if the change fits your goals and the revised plan is filed with MDARD
- Leaving the program, or converting the land to another use, triggers a recapture tax that can be expensive. We walk through it with you before you enroll.
Is QFP right for you?
For most forest owners in Michigan, we think it is. It may not help much if your taxes are already low and you don’t expect the land to change hands. It is not a fit if you plan to subdivide or develop the property. We have enrolled our own land in QFP.