MI HB4243

Imposes recapture tax on qualified forest property that is converted to a different use, requiring calculation of back taxes based on years of exemption and local school district mill rates.

For properties without documented forest product harvests under an approved management plan, recapture tax is calculated by multiplying the property's taxable value by applicable mill rates, years of exemption (up to 7 years), and then multiplying by 2.

For properties with documented forest product harvests consistent with an approved management plan, recapture tax is calculated by multiplying the property's taxable value by applicable mill rates and years of exemption (up to 7 years), without the 2x multiplier.

Properties withdrawn from the natural resources conservation program must pay recapture tax equal to withdrawal application fees and penalties if converted within 7 years; conversions after 7 years use standard calculation methods.

Effective June 1, 2013.