Managed Forest tax incentive program
What Is The Managed Forest Tax Incentive Program?
The Managed Forest Tax Incentive Program (MFTIP) is an Ontario government sponsored program which gives participants a 75-92% reduction on the property taxes for the eligible forested land for which a management plan has been created.
For more info on the program, please follow the link below:
Eligibility
To enter into this program, landowners must have at least 4 hectares (9.88 acres) of forested land. They must create a forest management plan and have it approved by a certified MFTIP plan approver. New plans must be entered into the program by June 30th of any given year to see a tax reduction in the following year.
Length Of Program Enrollment
Your property will be entered into the program for a 10 year period with a progress report being required at year 5. At the end of the 10 years, you will be required to renew your 10 year plan to stay in the program and be applicable for the tax reduction. If at any point during your plan you feel like you would like to remove your property from the program, you are free to do so but of course, you will lose your tax reduction on this land moving forward.
What Will This Mean For The Use Of My Property?
For the vast majority of people, enrolling in this program will have no effect on how you are able to use your forested land.
- Love to hunt?
- Do you maintain ATV trails?
- Do you harvest firewood?
- Do you plan on conducting a commercial timber harvest?
All these activities are still permitted while in this program, the only caveat being that any forest management activities are done so in a manner congruent with "good forestry practices" as defined by the Forestry Act. Chances are you have been and plan on conducting harvests in this manner anyways and as an approver, I can discuss this with you in more detail but it essentially involves managing your forest in a sustainable manner.
What Goes Into A MFTIP Plan?
The MFTIP plan for your property will cover many areas and can range from being very complex to fairly simple. It all comes down to what your priorities are for your managed land. For instance, if you are an avid hunter, I will work with you to prepare a plan which, through proper property management, will increase the suitability of your property to sustain and hold wildlife on your land.
How Much Money Could I Save?
Property owners can expect a 75% reduction on their property taxes for the eligible portions of their property but it can be as high as a 92%.
To find out how the program could change your property assessment, contact:
Municipal Property Assessment Corporation
PO Box 9808 Toronto ON
M1S 5T9
1-866-296-6722
Website: www.mpac.ca