acre is imposed for each year of classification up 
to 20 years. In addition a fee is charged of 10 per- 
cent of the full stumpage value of the merchant- 
able forest products then on the land. 
Land may be withdrawn without payment of 
the above fees should withdrawal be caused by 
any change in the provisions of the Act which 
materially increase the burden of the owner. 
An owner wishing to take advantage of this pro- 
vision must make application within one year 
after such changes become effective and must 
withdraw all his land classified under the Act. 
Tax treatment 
Land. An annual specific tax is imposed. This 
is determined from the total millage rate based on 
the State equalized valuation as it applies to the 
township, as follows: 
When total millage is less than 20 mills, 5 
cents per acre 
20 mills or more but less than 25 mills, 6 cents 
per acre 
25 mills or more but less than 30 mills, 7 cents 
per acre 
30 mills or more but less than 35 mills, 8 cents 
per acre 
35 mills or more but less than 40 mills, 9 cents 
per acre 
40 mills or more, 10 cents per acre. 
Timber. A yield tax of 10 percent is imposed 
upon the stumpage value of all forest products 
cut. 
Exemption. Timber cut for domestic use of the 
38 
owner or materials necessarily used in harvesting 
the forest crop are exempt. 
Tax administration 
Reports. An owner wishing to cut merchantable 
timber applies to the Department for a permit 
stating the location, volume, and unit value of 
products to be harvested. The Department then 
examines the timber and determines its value; 
provision is made for hearing and appeal. 
Every six months owners who have cut timber 
under permit must report the quantity and type of 
products harvested. The Department has the 
right of entry on forest lands and access to the 
owners’ records for the purpose of verifying such 
reports. 
Collection. The annual specific tax is collected 
by the township treasurer in the same manner as 
property taxes. The yield tax is collected by the 
Department of Conservation. 
Use of revenue 
The annual specific tax is distributed in the 
same manner as property taxes. 
One-half the revenue from the yield tax goes to 
the general fund of the State; the remainder is 
paid to the county for distribution in the same 
manner as receipts from the annual specific tax. 
State reambursement of local governments 
In consideration of the loss of local revenues 
resulting from the Act, the State pays annually 
to the counties 10 cents for each acre of classified 
land. This contribution is distributed as are the 
receipts of the annual specific tax. 
