Many woodlot owners, particularly those in the Managed Forest Tax Incentive Program (MFTIP), often wonder how their assessments were calculated. And it seems that when talking about property assessment, it is never simply a “black and white” explanation.
Hopefully, this article will shed some light on how managed forest properties are assessed. It is intended to serve as a refresher for everyone on MPAC’s assessment methodology, which was implemented in 2006 as part of enhancements to the MFTIP program.
First, let’s look at the main overriding principles of how managed forest (MF) properties are assessed.
The approach to assessing managed forests
Managed forest properties are assessed in a manner similar to the method used for farmland, which is based on land bands and soil classification. This assessment approach is called the farm-forest proxy. The farm-forest proxy reflects sales data from wooded portions of farms within a geographic area, based on site productivity (e.g., soil quality, drainage, mineral composition, etc.) and forms the basis for the assessment of land in the Managed Forest property class. The assessment methodology also includes an assessment “cap” and “floor;” see details below.