MI SB0651

Exempts transitional qualified forest property from ad valorem property taxes for up to 5 years after withdrawal from the commercial forest program, effective for taxes levied after December 31, 2015.

Requires property owners to apply to the Department of Agriculture and Rural Development with a $50 application fee and approved forest management plan; applications must be submitted by September 1 prior to the tax year.

Limits exemption to 160 acres maximum per township and imposes a transitional qualified forest property specific tax that phases in over 5 years, starting at 20% of normal property tax in year one and reaching 100% by year five.

Requires property owners to report forest practices and timber harvests annually and maintain current management plans and harvest records; failure to file rescission forms within 90 days of exemption ending triggers penalties up to $1,000.

Establishes Department of Agriculture and Rural Development database to track transitional qualified forest properties and notify owners of scheduled forest practices; property becomes subject to full taxation if forest management plan deadlines are not met within 3 years.