The bill amends the Natural Resources and Environmental Protection Act, specifically section 51105, to clarify the taxation of commercial forests in Michigan. It establishes that commercial forests are exempt from ad valorem general property tax once the township supervisor is notified by the department, but they are subject to an annual specific tax that will increase incrementally every five years. The specific tax rates are set at $1.10 per acre until December 31, 2006, $1.20 per acre from January 1, 2007, to December 31, 2011, and will increase by 5 cents per acre every five years thereafter.

Additionally, the bill modifies the language regarding the township supervisor's responsibilities by removing the gender-specific pronouns and includes provisions for commercial forestland located in renaissance zones or HOPE zones, which will be exempt from the specific tax for the duration specified in the respective acts. The bill also stipulates that all collected taxes will be distributed by the township treasurer in the same manner as ad valorem general property taxes. The enactment of this bill is contingent upon the passage of related legislation.

Statutes affected:
House Introduced Bill: 324.51105