The Commercial Forest Act commonly referred to as CFA/CFR has a substantial impact on how land is used in the Upper Peninsula of Michigan. Approximately ½ of the land in the U.P. is publicly owned. A majority of the remaining land is owned by timber and mining companies. This Act gives land owners of 40 acres or more the opportunity to reduce their tax rates substantially, if the land is properly registered and managed as commercial forestland. In return for the reduced taxes public access to the land is required. This means that the public has the opportunity to access the land by walking for the purpose of hunting, fishing and recreation. This Act has enabled the public to use a good deal of land for outdoor recreation.
CFR land can be transferred or it can be withdrawn from the Act upon payment of a penalty. This penalty amounts to the difference between the ad valorem tax rate and the rate actually paid under CFR.
This explanation is strictly an interpretation of the Act. Copies of the Act are available from the Michigan DNR at www.michigandnr.gov.
The lands that had been registered under the Commercial Forest Act will be designated as "CFR" in the plat books.
Disclaimer:
Hunting Land Experts are not licensed attorneys or accountants and do not give legal or tax advice. The comments included here are proposed to spark an interest for those concerned in real estate. DO NOT rely on this material when buying or selling real estate or when making any financial decisions. We highly recommend that you consult with a lawyer or accountant of your choosing for any legal or tax questions. In addition, the laws concerning the subjects discussed are forever changing. Therefore, it is subject to errors, omissions and/or change without notice. It includes statements and conclusions that are ours alone and with which others may disagree.
