The 2c Tax Class changes your property’s tax classification from Rural Vacant Land to Managed Forestland and thereby reduces your property taxes by 35%. It's a must for anyone who owns woodland acreage! A registered Woodland Stewardship Plan is required by the state before you can make this change.
What is 2c tax?
The 2c Managed Forestland Tax Classification (aka. “2c tax”) is a land tax classification that provides a reduced tax rate of 0.65 percent to property on eligible acreage that is included in a Woodland Stewardship Plan. Owners of forest land who actively follow a qualifying forest management plan may receive a classifaction rate of 0.65% on any eligible land. For most forested land, the classification rate would otherwise be 1.00% under the “Rural Vacant Land” classification. There is no minimum term of enrollment. Your property can remain eligible for 2c tax and the reduced tax rate as long as it is included in a registered Woodland Stewardship Plan that is less than 10 years old.
how MUCH MONEY WILL I SAVE IN TAXES?
The amount you save in property taxes is based on how many acres you have classified as Rural Vacant Land, and how much you pay in taxes on only those acres. You will save 35% on property taxes paid on Rural Vacant Land and the property status for those acres will change to Managed Forest Land.
You can find an approximate yearly savings amount by making the calculations below. You must contact your county assessor for necessary information pertaining to letters A and B before you start.
A: Your total acres that are classified as Rural Vacant Land = ___________ acres
B: Yearly taxes paid on total Rural Vacant Land acres (A) = $__________.______
C: B times 35% = $___________.______ (This is your yearly tax savings)
These calculations are intended for estimations on property incentives only and is not for use in any legal or official format. Final calculations should be considered approximate enough to make an informed decision regarding the best financial outcome for your property, but are not guaranteed to be 100% accurate. Itasca Woodland Services strongly encourages all landowners to research and fully understand the 2c Tax Class vs other financial incentive programs. Financial outcome is only one of the many factors that could influence the choice you make for your property.
what are the qualifications?
To qualify for the 2c Managed Forestland Tax Class, the following must apply:
Have a current Woodland Stewardship Plan that is registered with the DNR
Have at least 20 acres of wooded land (enrollment limited to 1,920 acres statewide)
Cannot include acreage that is enrolled in the Sustainable Forest Incentive Act (SFIA) or CRP, CREP, RIM, or the Green Acres program.
how do i apply?
Applications can be found at your county assessor’s office or by clicking here. Completed applications must be submitted to the corresponding county assessor's office that your woodland property is located in. First time applications submitted by May 1 will qualify for the assessment that will affect the taxes due starting the following year. Application must be made by May 1 to qualify for the current assessment year, taxes are payable the following year. For example, in order to qualify for the 2024 tax assessment, you must apply by May 1, 2024. The classification will then affect your taxes payable in 2025. When you submit your application for the 2c tax classification, you must have a valid and complete Woodland Stewardship Plan that has been submitted for registration by May 1st. You cannot apply for the classification with a “pending” plan. Full instructions for completing this process are found attached to the application on Page 3.
who do i contact with questions?
For questions regarding the application process for the 2c Managed Forestland Tax Class, contact your county assessor's office: click here for quick access to your assessor's information. If you need help obtaining a Woodland Stewardship Plan, click the button below.
Helpful Resources
Much of the content for this page is owned and provided by the MN Dept of Revenue at this link.
© 2022 Minnesota Revenue. “Class 2c Managed Forest Land.” Class 2c Managed Forest Land | Minnesota Department of Revenue, https://www.revenue.state.mn.us/class-2c-managed-forest-land