The Managed Forest Tax Incentive Program (MFTIP)
START SAVING TODAY!
What is MFTIP?
The Managed Forest Tax Incentive Program provides tax fairness to private landowners by valuing managed forest land at 25% of its residential valuation.
This provides landowners with up to a 75% reduction in property taxes.
Many of Ontario's forests may be privately owned but they benefit all Ontarians. Forests provide clean air and water, wildlife habitat, carbon sequestration and many other important natural services.
Am I eligible?
To be eligible you must:
- own 4 hectares (9.88 acres) of forested land in Ontario
- have a managed forest plan created for your property
- be a Canadian citizen, partnership or trust
What is a Managed Forest Plan?
A managed forest plan is a plan for your forest.
It includes a forest inventory to help you understand the values and importance of your property. This includes maps, aerial photography and details on tree species, size, age and quality and information on other natural features of your property. A plan outlines YOUR goals and YOUR objectives for your property. It also provides professional advice on how to meet your goals and objectives and includes professional recommendations on how to maintain a healthy and productive forest.
The Managed Forest Tax Incentive Program (MFTIP)
Frequently Asked Questions
How much does a plan cost?
The cost of a forest management plan varies depending on the size and complexity of the property. The first year of tax savings is usually more ( often much more ) than the cost of a plan. A total cost is easily provided prior to any work being done by contacting us and providing your property size and location.
How much can I save?
Savings are related to your property value and amount of forests and are calculated by MPAC. Most annual tax savings are $800 to $2000+ annually, Properties in high value areas, waterfront or large properties could save much more.
How long can I save for and how long does a plan last?
If you stay enrolled in the program, you will receive the annual tax rebate for 10 years. After 10 years, the plan is required to be updated and program renewal forms need to be completed. A renewal at the 10 year mark is a simple process and you will continue to receive the tax incentive for another 10 years.
What if I want to sell my property?
No restrictions whatsoever are placed on selling a property. If a property is sold, the property will be automatically removed from the tax incentive program. The new owners can however choose to re-enroll. If re-enrollment is within 90 days the property will continue to receive the tax incentive. If it is beyond 90 days, the new owners will have to re-apply and will have a waiting period. Selling a property with a managed forest plan is attractive to potential buyers as it makes your property cost them less in taxes than other comparable properties.
Are there any property restrictions?
A managed forest plan does not restrict use of your property but it does require that good forestry practices are followed.
Most activities are permitted including:
- personal or commercial harvesting of trees
- recreation, hunting, nature appreciation, trail construction
- foraging, maple syrup production and other non-timber forest production
- construction of forestry related buildings and infrastructure ( municipal building/planning policies are still applicable )
Restricted activities are those that are not considered good forestry practices such as:
- livestock grazing
- high grading or diameter limit cutting
- removal of soil or aggregate
- degradation of forest health
Can I leave the Program?
You can voluntarily leave the program at any time.
Is only forested land eligible?
No. Lands eligible for the tax incentive can also include up to 25% wetlands or areas unable to support trees and 10% open areas such as fields or former pasture or other areas that could support trees if these areas fit into your forestry objectives. 9.88 acres of minimum forest area is still required .
