Do you have some bush or forest area on your rural property? You may be eligible for tax relief when you follow an approved Managed Forest Plan. This blog post will provide a brief overview of the Government of Ontario’s Managed Forest Tax Incentive Program (MFTIP).
How does the Managed Forest Tax Incentive Program work?
Landowners who arrange for their property to be classified as a ‘Managed Forest’ only pay 25% of the municipal tax rate for residential properties.
Participants create and follow a 10-year Managed Forest Plan that explains how they will manage their forest property responsibly. The plan needs to be examined and accepted by a Managed Forest Plan Approver.
To stay in the program, participants submit a 5-year progress report and update their management plan every 10 years.
Who is eligible for the Managed Forest Tax Incentive Program?
Participants need to:
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own 4 hectares (9.88 acres) or more of forested land on a single property in Ontario on one municipal roll number
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be a Canadian citizen or permanent resident
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be a Canadian corporation or partnership
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be a trust or conservation authority
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have a minimum number of trees on each hectare (acre) of forest
Residences, landscaped areas, and land used for residential or other purposes are not eligible.
How can I apply for the Managed Forest Tax Incentive Program?
Step 1: Read the MFTIP Guide to see if you qualify. A Managed Forest Plan Approver can verify your eligibility.
Step 2: Create a Managed Forest Plan that includes details about your property and how you will manage it.
Step 3: Have your plan reviewed and accepted by a Managed Forest Plan Approver.
Step 4: Complete the application form.
Step 5: Gather the following documents for your application package:
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Managed Forest Plan
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MFTIP 10-year application form
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An area verification form for each property and an approval form, both completed by a Managed Forest Plan Approver
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a copy of the most recent property assessment notice for each property (provided by the Municipal Property Assessment Corporation)
Step 6: Send the complete application package to:
Administrator
Managed Forest Tax Incentive Program
Ministry of Natural Resources and Forestry
5th Floor S
300 Water St
PO Box 7000
Peterborough ON K9J 8M5