In the year of classification and the 
first year following 2-2-4 Su £229 & 
In the second and third years follow- 
ing the year of classification_____- 50% 
In the fourth and fifth years follow- 
ing the year of classification ______ 25% 
In no year shall such adjusted valuation be less 
than the lesser of (a) or (6), and in the sixth year 
following the year of classification and thereafter 
the adjusted valuation shall be the lesser of (a) or 
(0): 
(a) five dollars per acre. 
(b) the full value of the land including the 
growth thereon. 
Timber. A yield tax at the following rates is 
imposed upon the stumpage value of all forest 
products cut: 
In the year of classification. _______- 
In the first year following such year _ - 
In the second year following such 
(Er ee Ee Say ee eg, 
In the third year following such year - 2% 
In the fourth year following such 
75% 
In the fifth year following such year 
and:thereafters! = 221252 RED, eh Z 
Exemption. The owner may cut annually, tax- 
free, forest products for his own use or for the use 
of a tenant up to a stumpage value of $25. 
Income received from classified forest lands is 
exempt from State income tax (Chapter 62, Sec- 
tion 8 c). Classified lands remain subject to special 
assessments and betterment assessments. 
Tax administration 
Reports. The owner must report annually to the 
assessors of the town, setting forth the amount of 
forest products cut during the preceding year and 
such other information as may be required. On the 
basis of such return, the assessors assess the yield 
tax. 
Collection. Both land tax and yield tax are paid 
to the collector of taxes in the same manner as 
other local taxes. 
Use of revenue 
One-tenth of the land tax and also of the yield 
tax is paid to the State; the balance is retained by 
Nie tree aes oe, Da RS) Daal he re 7 8 244% the town. 
MICHIGAN 
Yield Tax (commercial forests).' 
Classification 
Qualification. Lands upon which the owner pro- 
poses to develop and maintain a forest by planting 
or natural reproduction may be classified as a 
“commercial forest reserve.’’ Such lands must be 
capable of producing a thrifty forest growth and 
must actually carry sufficient growth to assure 
that a stand of merchantable timber will be de- 
veloped within a reasonable time. The land may 
contain no material natural resources other than 
forest growth and no portion of the tract may be 
devoted to agricultural, mineral, grazing, indus- 
trial, recreational or resort purposes. The general 
public, however, must be accorded hunting and 
fishing privileges. 
It is the intent of the Act to exclude from classi- 
fication lands carrying merchantable timber in ex- 
cess of that required by good forestry practice 
to promote optimum growth and also to exclude 
lands insufficiently stocked to promise a satis- 
factory stand. It is not the intent to exclude land 
selectively logged or lands carrying stands well 
advanced toward maturity but still requiring a 
1 Known as the “Commercial Forest Reserve Act’? or 
“Pearson Act.” 
Optional. Enacted 1925. 
Amended 1927, 1931, 1935, 1939, 
1947, 1951, and 1958. 
Annotated Statutes, 1958, Title 13, 
Ch. 98. Sees. 13.221-13.288. 
period of years in which to produce high grade 
forest products. Areas insufficiently stocked with 
young growth may be included if essential to the 
proper development of the property as a whole. 
Procedure. The owner makes application to the 
Department of Conservation setting forth a legal 
description of the property and such additional 
information as may be required. The Department, 
after investigation and public hearing, determines 
whether the qualifications have been met and, if 
sO, approves the application, records it with the 
county register of deeds, and notifies the township 
supervisor. 
Conditions governing continued classification. 
The property must not be used for any purpose 
prejudicial to its development as a commercial 
forest reserve. Classified lands and also the records 
of the owner are subject to inspection by the 
Department. 
Transfer of title does not affect classification 
although a new owner may request withdrawal. 
Declassification 
This may be effected by the owner’s withdrawal 
or by action of the Department upon determina- 
tion that requirements for classification are not 
being met. A declassification fee of 3 cents per 
