The Managed Forest Tax Incentive Program is a voluntary program that incentivises good forest management by giving a property tax reduction to eligible landowners who prepare and follow an approved Managed Forest Plan. With over 20,000 properties enrolled in MFTIP in Ontario, the main benefit is having a thorough and comprehensive Plan for your property. A well-prepared Plan provides a comprehensive view of your forest prepared by experts in sustainable forest management. This includes a thorough inventory, summary of assets and existing or potential threats such as invasive species, and reasonable recommendations based on your goals and objectives coupled with resources to guide those activities are what you can expect from our award-winning Managed Forest Plan services.

Our clients report that the fee for a Managed Forest Plan is paid for within the first year or two of tax savings with the remaining 8-9 years of the plan as additional savings. Generally, the larger the property, the greater the savings.

When the eligible area of your property is enrolled in the program,

• the eligible area is classified as Managed Forest,

• the Managed Forest area is taxed at 25% of the municipal residential property tax rate, saving you 75% of the taxes, and

• the remainder of your property is taxed at the full municipal residential property tax rate.

For the property to be eligible for MFTIP, it must have at least 9.88 acres (four hectares) of forested land, per property. Please note, two properties with distinct roll numbers that together make up four hectares, but do not have four hectares individually, are not be eligible.

The Managed Forest Plan describes how you will manage your forest responsibly over a 10 year period. You need to follow your Managed Forest Plan and submit a progress report in the fifth year of your plan. After 10 years, you can renew your participation in the program with a new approved Managed Forest Plan.

You must hire a Managed Forest Plan Approver to prepare and approve a Managed Forest Plan for the forest on your property. This is where FSmith Consulting Inc. comes in! We will assess your woodlot, prepare your plan, and submit it to the ministry on your behalf.

The annual deadline for new MFTIP submissions is June 30th of each year, for a reduction in property tax rate in the following year. Managed Forest Plans can be prepared at any time of the year, but winter is the preferred time for our team to assess your woodlot. Winter provides excellent inventory information as the forest is more open and visible. Preparing your plan early means you can beat the spring rush, and ensures you receive the tax reduction the following year.