Minnesota (Summary)
Last Updated: March 2020
Tax Type: Preferential classification rate for enrolled forest land
Description: Landowners who actively follow a DNR registered forest management plan may receive a reduced classification rate on eligible forest land (2c classification). Landowners who enroll their forestland in the Sustainable Forest Incentive Act (SFIA) program can receive an annual payment based on the acreage of the forestland enrolled.
Law: Minn. Stat. §§ 290C.01 to 290C.13, § 273.13
Objective: Promote sustainable forest resource management, foster silviculture investments and retain these forests for their economic and ecological benefits, and encourage the state's private forest landowners to make a long-term commitment to sustainable forest management.
Principal Forest Property Tax Incentive Programs:
1. Program legal-common name: Managed Forest Land Program (Class 2c)
Program Requirements
Min/Max Acreage: 20 acres, maximum of 1,920 acres statewide
Min. Stocking Growth: N/A
Forest Management Plan: Forest management plan must be prepared by a Minnesota Department of Natural Resources (MN DNR) approved forest management plan writer within the last 10 years. The plan should be registered with the DNR.
Duration of Enrollment: N/A
Penalties for Use Change: None
Program Administration
State: The MN DNR must concur that the land is qualified for the classification. The DNR annually provide county assessors verification information.
County Tax Assessor and Commissioner County assessors handle applications and set the assessed value.
University: N/A
Landowners: File an application with county assessors
2. Program legal-common name: Sustainable Forest Incentive Act (SFIA)
Program Requirements
Min/Max Acreage: 20 acres, year-round public access required if more than 1,920 acres enrolled
Min. Stocking Growth: N/A
Forest Management Plan: Forest management plan must be prepared by a Minnesota Department of Natural Resources (MN DNR) approved forest management plan writer within the last 10 years. The plan should be registered with the DNR.
Duration of Enrollment: Three covenant length options: 8, 20, and 50 years. Payment rates increase as the covenant length increases. Landowners sign and return the annual certification letter to the DOR.
Penalties for Use Change: Penalty in an amount equal to: (1) 30% of the estimated market value as property reclassified due to the change in use, as determined by the assessor; and (2) the lesser of payments received over half the duration of the covenant, or payments received over the total years enrolled, plus interest.
Program Administration
State: MN DOR and MN DNR administer the SFIA program.
County Tax Assessor and Commissioner: Determines the FMVs for the calculation of the penalties
University: N/A
Landowners: Registers forest management plan with the MN DNR, applies with the MN DOR, returns annual certification letter
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