Minnesota Lakes and Rivers Advocates Blog

2014 Tax Tips for Forest Landowners

As a forest owner, understanding tax law is an important part of owning and managing timber, participating in forest stewardship activities, and complying with tax law.

MLR has long understood that Minnesota's family lake places are heirlooms, not assets. Independent research shows that the average (mean) length of ownership of a Minnesota cabin is 25 years, and that 86% intend to leave their place to children and grandchildren. For many Minnesotans, the lake is where family happens. But with current inheritance and tax laws, combined with ordinary family dynamics, make the transition from one generation to the next does not happen without some planning.

This year the legislature passed and Governor Dayton signed innovative legislation to protect our lakes sending $10 million in Aquatic Invasive Species (AIS) prevention aid to counties. This annual appropriation will be divvied between the counties based on the number of public boat launches combined with the number of watercraft trailer parking spaces in each county. The first instalment arrived July 20th.  This remarkable innovation puts funding at the source, where it is most needed and can do the most good. And that is the problem.

The future health of Minnesota's iconic lakes and rivers may well depend on passage of this year's bonding bill. The research center will be unable to continue without the funding to build a secure lab. “It is do or die,” said Dr. Sorenson at the February meeting of the Statewide AIS advisory Committee. Without additional funding, MAISC will have to close before it really gets started. Said Dr. Sorenson, “Our Center's request for an AIS and holding lab, via the University bonding bill, is essential to our continued existence.”