CHAPTER 61 FOREST LANDS The forest land classification program is designed to encourage the preservation and enhancement of the Commonwealth’s forests. It offers significant property tax benefits to owners willing to make a long-term commitment to forestry. In exchange for these benefits, the town is given the right to recover some of the tax benefits afforded the owner when the land is removed from classification and an option to purchase the property if the land is sold or used for non-forestry uses.
QUALIFICATIONS
A parcel must consist of at least ten contiguous acres of land under the same ownership and be managed under a ten year management plan approved and certified by the State Forester in order to qualify for and retain classification as forest land.
APPLICATION
The property owner must submit a written application to the State Forester before July 1 of the year before the start of the fiscal year for which taxation as classified land is sought. Before September 1, the owner then submits a written application to the Board of Assessors henceforth annually.
ANNUAL TAXATION
Under chapter 61, the owner still pays annual property tax. However, the tax is based on the commercial rate applied to five percent of the fair market value of the land. The owner must also pay a products tax annually based on eight percent of the stumpage value of the forest products cut from the parcel during the prior calendar year.
CHAPTER 61A AGRICULTURAL/ HORTICULTURAL LAND
The agricultural/horticultural land classification program is designed to encourage the preservation of the commonwealth’s valuable farmland and promote active agricultural and horticultural land use. It offers significant property tax benefits to owners willing to make a long-term commitment to farming. In exchange for these benefits, the town is given the right to recover some of the tax benefits afforded the owner and an option to purchase the property should the land be sold or used for any purpose other than to continue raising farm products.
QUALIFICATIONS
The property must be at least five acres under the same ownership and be "actively devoted" to agricultural or horticultural use in order to qualify for and retain classification. An equal amount of contiguous, non-productive land may also qualify.
Land is used for agricultural purposes if it is used primarily and directly to raise or grow the following for sale in the regular course of business:
Animals including bur not limited to dairy cattle, beef cattle, poultry, sheep, swine, horses, ponies, mules, goats, bees and fur-bearing animals.
Fruits, vegetables, berries, nuts and other foods for human consumption, feed for animals, tobacco, flowers, sod, trees, nursery and greenhouse products.
Forest products under a forest management plan approved by the State Forester.
For the land to be considered "actively devoted" to farm use, it must have been farmed for the two fiscal years prior to the year of classification and must have produced a certain amount of sales. The minimum gross sales requirement is $500 for the first five acres of productive land. That amount is increased by $5 for each additional acre of productive land being classified, unless the additional acreage is woodland or wetland. In that case, the amount is increased by only $.50 for each additional acre. The minimum gross sales requirement for land being used to cultivate or raise a farm product, that takes more than one season to produce its first harvest, is satisfied if the land is used in a manner intended to produce those sales within the product development period set by the Farmland Valuation Advisory Commission.
APPLICATION
The property owner must submit a written application to the Board of Assessors by October 1 of the year before the start of the fiscal year for which taxation as classified land is sought. The owner must file a separate application by October 1 each year for classification of the land to continue into the next fiscal year. The land cannot be classified as agricultural/horticultural for a fiscal year if the owner does not comply with all application deadlines and procedures.
ANNUAL TAXATION
Under Chapter 61A, the owner still pays annual property tax. However, the tax is based on the commercial rate applied to the value in use of the agricultural land, rather than its fair market value. The value in use is established annually by the Farmland Valuation Advisory Commission.
CHAPTER 61B RECREATIONAL LAND
The recreation land classification program is designed to encourage the preservation of the Commonwealth’s open space and promote recreational land use. It offers significant property tax benefits to owners willing to make a long-term commitment to preserving land in an undeveloped condition or for use for outdoor activities. In exchange for these benefits, the town is given the right to recover some of the tax benefits afforded the owner when the land is removed from classification. The town is also given an option to purchase the property if the land is sold or used for any purpose other than to maintain open space or recreational use.
QUALIFICATIONS
Property must be at least five contiguous acres under the same ownership in order to qualify for and retain classification. The land must fall into one of the following categories to qualify:
Must be maintained in a substantially natural, wild or open condition or must be maintained in a landscaped condition permitting the preservation of wildlife and natural resources. It does not have to be open to the public, but can be held as private, undeveloped, open space.
Must be used for certain recreational purposes and must be open to the public or members of a non-profit organization. Recreational purposes include land used primarily for outdoor activities, so long as they do not materially interfere with the environmental benefits of the land such as hiking, camping, nature study/ observation, boating, golfing, horseback riding, hunting, fishing, skiing, swimming, picnicking, private non-commercial flying, hang gliding, archery and target shooting.
APPLICATION
The property owner must submit a written application to the Board of Assessors by October 1 of the year before the start of the fiscal year for which taxation as classified land is sought. The owner must file a separate application by October 1 each year for classification of the land to continue into the next fiscal year. The land cannot be classified as recreational for a fiscal year if the owner does not comply with all application deadlines and procedures.
ANNUAL TAXATION
Under Chapter 61B, the owner still pays annual property tax. However, the tax is based on the commercial rate applied to the value in land for recreational purposes, rather than its fair market value. The value of the land for recreational purposes is determined annually by the assessors not to exceed twenty-five percent of the fair market value of the land.
RIGHTS AND OBLIGATIONS UNDER CLASSIFIED CHAPTER LAND PROGRAMS
LIENS
Once an application has been approved, the Board of Assessors will record a statement at the Registry of Deeds indicating that the parcel has been classified under a chapter program. That statement will constitute a lien on the parcel for all taxes due under Chapter 61.
MUNICIPAL OPTION TO PURCHASE
The town has the option to purchase any of the classified land whenever it is sold or converted to residential, commercial or industrial use. It is the obligation of the property owner to notify by certified mail the selectmen, assessors, planning board and conservation commission of his intention to sell or convert land to those purposes. If the owner plans to sell the land, the town has the right to match a bona fide offer to purchase it. The town has the right to purchase it at its fair market value, which is to be determined by impartial appraisal. The town my also assign its option to a non-profit, conservation organization. The classified land may not be sold or converted until at least one hundred twenty days have passed since the mailing of the required notices or until the owner has been notified in writing that the option will not be exercised, whichever is earlier.
The option does not apply if the owner plans to build a residence for his use, or the use of his parent, grand parent, child, grandchild, brother or sister, the surviving spouse of any of those relatives, or an employee working full-time in the classified use of the parcel.
WITHDRAWAL TAX
Whenever any of the land is withdrawn or removed from classification, whether or not it is subject to the purchase option and notice requirement, a withdrawal penalty tax must be paid. The owner must pay a rollback tax for a five or ten-year period depending on which program the land is classified in. Rollback tax is the difference between the amount the owner would have paid in annual property taxes if the land had been taxed at its fair market value and the amount of taxes he has paid under chapter classification. Interest charges are applicable for properties classified under Chapters 61 and 61B.