Ch. 61 Frequently Asked Questions
Submit your Ch. 61 question (e-mail: cat@umext.umass.edu)
Below are answers to some of the most frequently asked questions regarding the new changes to Ch. 61. Please note that although these changes are effective on March 22nd 2007, it is likely that some of the changes will take longer to implement. Therefore, the answers to some of the questions may not be fully known.
Summary of the Ch. 61 Changes
Ch. 61 Changes Fact Sheet (PDF)
View the actual Act
1. How will my Ch. 61 land now be assessed?
State tax laws in Massachusetts require that land be taxed at its full and fair market value. Most often this value is derived from residential development. Currently, land which is certified under Chapter 61 is assessed at 5% of the fair market value or at $10 per acre, whichever is greater. However, as property values continue to rise, especially in eastern and central Massachusetts, 5% of the fair market value is still a lot of money and can place tremendous pressure on landowners to sell their land for development.
The new law changes the tax assessment method used under Ch.61 forestry chapter to make it consistent with the method used in the Ch. 61A agriculture chapter. Land under Ch. 61 will be assessed on a per acre fee basis based on its current land use, i.e. growing trees. This is a fairer method as it is based on the actual use of the land as opposed to a percentage of its development value.
It should be noted that Ch. 61 properties in some parts of the state, particularly the east, will likely see decreases in their taxes on certified land under this new assessement, but other areas, likely in the western part of the state, may see some increases.
These changes also allow municipalities the option to tax land currently enrolled in one of the chapters at an open space rate rather than at a commercial rate. This help support agriculture and forestry.
2. When will this change to my assessment take place?
This change will go into affect July 1st, 2008. Until that date, assements will remain under the current system.
3. Who gets to decide the per acre assessment of forest land?
There is a committee known as the Farm Advisory Committee (FAC) made up of representatives from various agricultural sectors. The FAC sets per acre assessments for various agricultural land uses (e.g., Vegetable, Tobacco, Sod and Nurseries, Dariy, Beef and Hay). A forestry representative is going to be added to the FAC. The FAC, likely in collaboration with the forestry community, will develop a method for calculating a per acre assessment of Ch. 61 land devoted to growing trees. The exact process for how this will work has yet to be determined. However, the assessment will likely recognize the difference in the ability of a site to grow trees.
As an example, the FAC develops a per acre assessment for Ch. 61 A land in "productuctive woodland use". The recommended per acre assessments for FY 07 are: $64 per acre for land rated as below average productivity, $80 per acre for land of average productivty, and $95 per acre for land of above average productivity. The productivity levels are based on the USDA soil rating.
4. Do the changes allow landowners to switch to a different program without penalty?
Yes. Landowners may switch their land from enrollment under one chapter to enrollment under another chapter, without penalty. The change is intended to allow flexibility in land management and to encourage landowners to keep their land undeveloped.
5. What are the changes to the Right of First Refusal?
Towns may still excercise their Right of First Refusal or transfer this right to a qualified conservation organization. Towns still have 120 days to notify the landowner that they are going to excercise this right. However, the previous law did not provide a time frame in which the town needed to complete the purchase. Under these changes, a town must now complete the purchase within 90 days. A town may also now excercise its Right of First Refusal for 12 months from the time a landowner notifies the town that they are withdrawing land from current use tax status and proposing development.
6. I placed a conservation restriction on my land to ensure it would always remain undeveloped. I have been in Ch. 61 for a number of years, but now that I have a conservation restriciton on my land, I no longer want to keep in Ch. 61. If I withdraw the land from Ch. 61, am I responsible for paying any penaties?
No. According to the new law, withdrawal from enrollment under any of the three chapters (Ch. 61, 61A or 61B) without a change in actual land use will not result in a rollback penalty if the use remains unchanged for five years. Since you have placed a conservation restriction on your land, it is clear that the land use will not change. You therefore would not be responsible for any penalties.
7. Can I now have a harvest on my Ch. 61 B land?
Yes, but the harvest must be recommended in a state approved forest management plan.
