RE: Managed Forest Tax Incentive Program Information for New Woodlot Owners
The Managed Forest Tax Incentive Program (MFTIP) is a voluntary program that encourages landowners to take an active role in managing their forested properties by providing a property tax reduction to landowners who prepare and follow a 10-year managed forest plan for their property. This program may be of interest to real estate agents whose clients have at least 9.88 acres of forested lands on their property.
The Ministry of Natural Resources and Forestry (MNRF) is seeking real estate agents’ assistance in making sure new forest owners are aware of the program and can take advantage of the opportunity it provides.
To participate, landowners should contact an MNRF-authorized Managed Forest Plan Approver (MFPA) to prepare or approve a managed forest plan. Applications are due June 30th each year for consideration for the following taxation year. Land area enrolled in MFTIP is assigned to a unique Managed Forest property tax classification and property values are reassessed in a manner similar to farmlands. The eligible portions are then taxed at 25% of the local municipal tax rate set for residential properties.
When a property that is currently participating in the MFTIP is sold, the new owners have 90 days from the date of transfer to submit a new application and a new managed forest plan in order for the property to continue receiving the property tax benefits afforded under the program without interruption. Participation in MFTIP is non- transferrable, but buyers may want to obtain a copy of the previous managed forest plan from the sellers to inform the new plan. New woodlot owners are often not aware of the program and may not realize the time sensitivity to take advantage of this opportunity, resulting in missed deadlines and increased property tax burdens.
Please download the brochure and guide to keep for your own information and to distribute to your clients, as well as interested woodlot owners.
Thank you for your contribution towards protecting Ontario’s natural resources!
For even more information, visit: https://www.ontario.ca/page/managed-forest-tax-inc...
