MI HB5002

Amends Michigan's property tax law to exempt qualified forest property from local school district operating taxes, with a statewide acreage limit of 1,200,000 acres beginning in fiscal year 2011 and thereafter.

Requires property owners to obtain a forest management plan from a qualified forester and submit it with a $50 application fee to the Department of Agriculture and Rural Development by September 1 prior to the requested tax year.

Limits exemptions to a maximum of 640 acres (or 16 survey units) per property owner per local tax collecting unit and requires properties to be at least 20 contiguous acres with specified percentages of productive forest stocking based on parcel size.

Imposes a 2-mill fee on exempted qualified forest property to be collected and deposited into the Private Forestland Enhancement Fund, and requires property owners to report forest practices and timber harvests annually to the department.

Establishes penalties including $5 per day (up to $1,000) for failing to rescind exemptions when property no longer qualifies, and requires property to be removed from tax rolls and subject to recapture taxes if exemption requirements are no longer met.