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Form CR-TH1 Instructions

The Sustainable Forest Incentive Act provides annual payments to enrolled owners of forested land to promote long-term, sustainable forest management practices.

Who is eligible?

To enroll in the Sustainable Forest Incentive Program (SFIA), you must meet all of the following requirements:

  • You own 20 or more contiguous acres of land in Minnesota, of which at least 50 percent is forested.
    • Subtract 3 acres for any building or structure that is not used exclusively for forest management activies (house, barn, cabin, etc.).
    • Subtract the entire surface area of any open water body greater than 3 acres in size. (Open water bodies less than 3 acres may be included).

An owner may include private individuals, corporations and partnerships – both residents and nonresidents of Minnesota. However, there can only be one claimant per parcel of land. If the land is owned by multiple people, the owners must decide who will receive the incentive payment.

  • There are no delinquent property taxes owed on the land before enrolling in SFIA, and the taxes remain current while enrolled in the program.
  • The land must have a current forest management paln that is both:I
    • Registered with the Department of Natural Resources (DNR).
    • Prepared by a plan writer who is approved by DNR.

Allow adequate time for your plan to be written and registered to ensure you meet program deadlines. It takes:

  • Plan writers several months to write a forest management plan.
  • DNR 45 days to process your plan registration.

To receive an SFIA payment in 2023, submit your forest management plan to DNR by September 15, 2022. If DNR receives your forest management plan after this date, it may not be registered by October 31, 2022, and your application will be considered incomplete.

Note: All management activities in the plan must meet the Minnesota Forest Resources Council’s timber harvesting and forest management guidelines.

  • The parcel cannot contain any land that is classified as 2c Managed Forest Land or enrolled in Green Acres, Rural Preserve, or Agricultural Preserves.
  • The land cannot be enrolled in the Conservation Reserve Program (CRP), Conservation Reserve Enhancement Program (CREP), or Reinvest in Minnesota (RIM) Reserve Program.
  • The land cannot be subject to an easement funded by the Lessard-Sams Outdoor Heritage Council or a comparable permanent easement granted to a government or nonprofit entity after May 30, 2013.
  • The land cannot be used for residential or agricultural purposes.
  • You agree to be enrolled in the program for a minimum of eight years.

How to Apply

If you meet all the above qualifications:

  1. Record a covenant with the County Recorder or Registrar (for registered land) where your land is located, pledging not to develop the land. Covenant forms are available at the recorder’s or registrar’s office. Allow 2 to 3 months to process your request.
  2. After you receive a covenant recording number, complete Form CR-TH1, Sustainable Forest Incentive Act Enrollment Application.
  3. Submit the completed Form CR-TH1 and all required documents as instructed on the form.

Use of Information

We use the information you provide on this form to propertly identify you and determine if you qualify to receive an incentive payment. Your Social Security number is required. (See Minnesota Statute 290C.04).

Your application may be delayed or denited if you do not provide all of the requested information, except for your phone number. However, providing a daytime phone number can save time if we have any questions.

Your Social Security number is private information; we cannot disclose it to others without your consent.

Your Federal ID or Minnesota Tax ID number and date of birth are also private or nonpublic information; however, we may disclose them to county assessors or treasurers for property tax or debt collection purposes. All other information on this form is public.

Required Attachments

You must attach copies of the following information to your applicaiton for each parcel of land you wish to enroll:

  • The recorded covenant, including Exhibits A and B.
  • The current year property tax statement.

Keep a copy of your application and all attachments for your records. You will need the parcel information in future years to complete and sign your annual SFIA certificaiton letter. We will not be able to provide you with a copy.

Due Date

Your applicaiton and all required attachments must be postmarked no later than October 31, 2022, to receive an incentive payment in 2023.

Applications postmarked after Oct. 31 will be denied for that year. Your application may also be delayed or denied if you do not provide all of the requested information.

The Department of Revenue will send an approval or a denial letter within 90 days after receiving your applicaiton.

Before You Can Apply

Before submitting your application, all statements in the Enrollment Checklist must be true. Be sure you meet all these requirements before filing Form CR-TH1.

Landowner Information

Check one box to indicate if the land is owned by an individual person (or multiple people) or a business entity. Complete Part 1 or Part 2, whichever applies. Use a seperate application for individual-owned and entity-owned property.

If the land is owned by multiple people, including married couples, the owners must decide who will receive the incentive payment. Only one owner can apply.

If the land is owned by a business or organization, the entity must appoint one authorized representative to enroll in the program and receive incentive payments on behalf of the entity. However, the authorized representative must apply in the name of the entity that owns the land.

The current mailing address will be used to mail any correspondence, including incentive payments. If you change your address, you must notify the department of the change by emailing us at: sfia.proptax@state.mn.us.

Parcel Information

For each parcel of land you wish to enroll, you must provide the requested information. If all the information is not provided for each parcel, including the number of eligible acres, your application will be delayed or denied.

Column A – County Code

In the chart below, find the county in which each parcel is located and enter the corresponding three-digit number in Column A.

Column B – Covenant Recording Number

Enter the covenant recording number for each parcel of land you wish to enroll. The recording number is issued by the county at the time your covenant is recorded and is found on the covenant. Attach a copy of the covenant recorded for each parcel of land you wish to enroll in the program. Be sure to also include copies of Exhibits A and B.

Column C – Conservation Easement

For each parcel, check Yes or No to indicate if it’s subject to a conservation easement. If you answer Yes, attach a copy of the easement for that parcel.

Column D – Property Identificaiton Number (PID)

Enter the PID for each parcel of land you wish to enroll. You can find the PID on the property tax statement for that parcel. Attach a copy of the property tax statement for each parcel of land you wish to enroll in the program.

Column E – Number of Eligible Acres

For each parcel, you must separetely list the number of eligible acres you wish to enroll. Round the amount for each parcel to the nearest whole acre. If you do not provide the number of acres for each parcel, processing your application will be delayed.

Column F – Covenant Length

Check the appropriate box to indicate the length of the covenant you recorded for each parcel (8, 20, or 50 years).

Signature

You must sign and date this application or it will be considered incomplete. By signing the application,m you are declaring that:

  • The form is correct and complete to the best of your knowledge.
  • You are the owner or authorized representative of the entity that owns the land.
  • You will follow the land’s forest management plan and all provisions of the Sustainable Forest Incentive Act (Minnesota Statutes 290C.01 to 290C.12).
  • No delinquent property taxes are due on the land you wish to enroll.

Making false statements on this application is against the law. Criminal and/or civil penalties may apply for filing a false or fraudulent application.

If You’re Approved

Once you’re approved and enrolled in the program, the department will send you an annual certification letter every May. If you properly complete the certification and return it by the due date as instructed, you can expect to receive your first incentive payment on or before Oct. 1, 2023.

If you fail to return the certification letter as required, you will not receive an incentive payment for that year.

Questions? Need Forms?

For quesitons about enrolling in SFIA, contact the Department of Revenue online, Phone: 651-556-6088, Email: sfia.proptax@state.mn.us

For questions about forest management plans, contact the Department of Natural Resources online, Email: sfia.dnr@state.mn.us

 

County Code County Code County Code
Aikin 001 Isanti 059 Pipestone 117
Anoka 003 Itasca 061 Polk 119
Becker 005 Jackson 063 Pope 121
Beltrami 007 Kanabec 065 Ramsey 123
Benton 009 Kandiyohi 067 Red Lake 125
Big Stone 011 Kittson 069 Redwood 127
Blue Earth 013 Koochiching 071 Renville 129
Brown 015 Lac qui Parle 073 Rice 131
Carlton 017 Lake 075 Rock 133
Carver 019 Lake of the Woods 077 Roseau 135
Cass 021 LeSueur 079 St. Louis 137
Chippewa 023 Lincoln 081 Scott 139
Chisago 025 Lyon 083 Sherburne 141
Clay 027 McLeod 085 Sibley 143
Clearwater 029 Mahnomen 087 Stearns 145
Cook 031 Marshall 089 Steele 147
Cottonwood 033 Martin 091 Stevens 149
Crow Wing 035 Meeker 093 Swift 151
Dakota 037 Mille Lacs 095 Todd 153
Dodge 039 Morrison 097 Traverse 155
Douglas 041 Mower 099 Wabasha 157
Faribault 043 Murray 101 Wadena 159
Fillmore 045 Nicollet 103 Waseca 161
Freeborn 047 Nobles 105 Washington 163
Goodhue 049 Norman 107 Watonwan 165
Grant 051 Olmsted 109 Wilken 167
Hennepin 053 Otter Tail 111 Winona 169
Houston 055 Pennington 113 Wright 171
Hubbard 057 Pine 115 Yellow Medicine 173

 

Last updated by the Pope County Assessor’s office February 28, 2024