FAQ
What you need to know
What part of my property will receive 75% tax reduction?
- The forested area of the property is eligible.
- One acre is deducted from total forested area (in case you have future building plans).
- Open areas can be included when their area doesn’t exceed thresholds: for wetlands 25%, and meadows 10% of total area per property.
Ineligible and unaffected:
- The tax reduction does not apply to taxes you pay on buildings or residences on the property. Those taxes will stay the same.
- Forested areas already assessed under the Farm Property Class Tax Rate or Conservation Land Tax Incentive Program already receive a reduction. This information is on your Annual Tax bill and MPAC notice of assessment.
- Land licensed under the aggregate resources act or zoned aggregate extraction is not included.
How much property tax will I save?
Every property is different so it is impossible to say. Checking your tax assessment can give you a rough sense of the savings you can expect. Forested acres are reassessed at 25% of their current rate. Generally the larger the property, the bigger the savings. Typically, the cost of hiring an RPF to make the managed forest plan is offset by annual tax savings within 1–2 years.
Can I leave the MFTIP program?
Yes. Enrollment lasts 10 years but you can leave anytime.
What commitment do I have to KLT?
No commitment required.
What is a ‘managed forest plan’?
A managed forest plan is required to enroll your property in the MFTIP program. The plan describes the state of your forest, and the goals you have for your forest.
Most managed forest plans rank and describe actions associated with the following goals:
- Environmental Protection
- Forest Products
- Investment
- Recreation
- Wildlife
Based on your ranking of the above goals, the state of your forest, and a forester’s knowledge of sustainable management, the plan then describes activities you should undertake in the next ten years to achieve your goals. For example if you prioritize forest products, it will describe when and where a sustainable harvest can be made. If you prioritize wildlife, it may mention planting fruit-bearing shrubs in forest clearings. These plans are highly personal. You are in charge of the process. What all plans have in common is they describe how to undertake any forest work with the long term sustainability of your forest in mind.
How does this change how I use my forest?
Working with an expert simply gives you guidance and planning direction to ensure your goals result in a sustainable forest for the long term.
Can I hunt? What about ATVing?
Yes. Plans don’t limit how you use your property for recreation. If hunting is a priority, you might ask your RPF to suggest management activity that promotes deer browse. If ATVing is important, your RPF may suggest trail maintenance activities that limit erosion, or avoid rare habitat features.
Do I have to cut trees?
A managed forest plan doesn’t need to include ‘active management’ such as harvesting trees. ‘Passive management’ or ‘wild forest’ approaches also qualify as managed forests. Working with an RPF will let you know when and if active management could improve the health of your forest, but it’s up to you which activities are included in your plan.
Can I cut trees?
Yes. Timber harvest pays when it is well planned and considers the long-term health of the forest. Working with an RPF and putting your timber harvest goals in your plan gives you objective guidance about which trees to cut, when. This keeps your forest healthy and profitable.
Why Is Kawartha Land Trust Involved?
Kawartha Land Trust’s vision is abundant natural and productive lands that are embraced, protected, and conserved by the people of the Kawarthas to sustain and enrich life.
We own land and participate in the Managed Forest Tax Incentive Program ourselves, so we know it is helpful. Through analysis we realized that only about 23% of eligible landowners in our service area use the program. We believe that more landowners could improve the biodiversity and productivity of their forests when they are connected to the professional advice offered by Registered Professional Foresters and ratified in managed forest plans.
Specifically the subsidies and costs of administration are provided by the government of Canada’s Nature Smart Climate Solutions Fund. This program aims to support well managed forests because they are part of lowering carbon emissions and mitigating climate change.
What do I have to do to get the subsidy?
The information provided in the eligibility section is all you need to do. There is no additional long term commitment, or requirement to prioritize certain activities on your property over others. Your plan will however include additional information specific to emissions reducing forest management and long term carbon sequestration in your forest.
Can I pick the forester that writes my plan?
Yes, as long as they are a Registered Professional Forester (RPF) from our community of practice. The about page identifies the RPFs that work in our region.
As part of the subsidy, we are required to ensure that prescribed forest management actions are consistent with Good Forestry Practices. This is important as our region lacks harvest and woodland conservation bylaws. Since forest management practices fall within the scope of the Professional Foresters Act, full RPFs (or Associate RPFs with a defined and appropriate Scope of Practice with the Ontario Professional Foresters Association) should be those giving prescriptive forestry advice.
This means that some foresters (those without RPF certification) will not be able to provide the subsidy and are not participants in the forest partners program.
Can I enter MFTIP without the subsidy?
Yes.
What is your privacy policy?
We only collect the information about you and your property that we need to pay out the subsidy. We will not store information about you or your property without additional permission, or share information with government or non-government agencies beyond what is required to enroll in the MFTIP program.
If I’m paying less property tax, does my municipal government receive less revenue?
The Managed Forest Tax Incentive program is part of a suite of tax incentive programs designed by the Ontario Government. The others are the Conservation Land Tax Incentive Program and the Farm Class Tax program. All are designed to promote land management that is in the public good. The Ontario government offsets the losses in municipal property tax income due to these programs.
Is this part of the carbon market?
No. We are simply encouraging enrollment of local landowners in the voluntary MFTIP program. Carbon markets may or may not require you to leave the MFTIP program.