Section-by-Section Explanation of
REVISIONS TO THE CURRENT-USE TAXATION PROGRAMS
(M.G.L. Chapters 61, 61A, 61B)
Consensus Bill Offered by the Task Force, October 6, 1998
AN ACT RELATIVE TO THE TAXATION OF FOREST, FARM AND RECREATION LAND.
SECTION 1.
(Chapter 61) Removes the limitation which has prevented lands for which a subdivision plan is on file from qualifying for Chapter 61.SECTION 2.
(Chapter 61) Moves the date by which evidence of a forest certification and an approved management plan must be submitted to assessors from September first to October first.SECTION 3.
(Chapter 61) Prevents assessment of products tax if the amount is less than $10.SECTIONS 4, 16.
(Chapter 61, 61A) Reduces the days by which an aggrieved landowner can apply for abatement of either taxes under these Chapters from 60 to 30 days.SECTION 5.
(Chapter 61) Specifies that municipalities, the Commonwealth, and non-profits shall not be subject to withdrawal penalty taxes for that portion of Chapter 61 property (including a less than fee interest) which they acquire by any means for a public purpose and which is not converted to commercial, residential or industrial use, but that withdrawal penalty taxes shall be paid by non-profits for any portion which is so converted. Specifies that land which is withdrawn from the program for failure to reclassify, but is reclassified within one year without any change of use, shall not be subject to withdrawal penalty tax.SECTIONS 6, 15, 24.
(Chapter 61, 61A, 61B) Extends municipality’s right of first refusal option for two years following withdrawal from program.Clarifies the notice requirements and definition of a bona fide offer. A notice of intent to sell or a notice of intent to convert must contain: · statement of intent to sell or convert;· statement of proposed use;· location and acreage map at scale of the town/city’s assessors maps;· name, address, phone of 1)landowner & his attorney; 2)proposed buyer & his attorney;· certified copy of executed P&S specifying price and terms & conditions of sale, limited only to the chapter land & shall be a bona fide offer;· statement of additional consideration for contiguous land not under tax program but part of same sale. A bona fide offer means: · good faith;· not dependent on conditions relating to suitability of property;· made by party unaffiliated w/landowner;· fixed consideration, payable upon delivery of deed;· shall only refer to the parcels of land subject to conversion in notice of intent.
Notice of intent to sell or to convert must be additionally sent to the state forester (for Chapter 61), the Commissioner of Food & Agriculture (for Chapter 61A), the Director of the Division of Conservation Services (for Chapter 61B). If notice of intent to sell or to convert does not contain all above material, municipality must, within 30 days of receipt, notify landowner that said notice is insufficient and does not comply.
Municipality must provide landowner with either notice of exercise of option, notice of assignment of option, or notice of non-exercise; all of which must be recorded at the registry of deeds. Any notice of exercise (whether from municipality or assignee) must be accompanied by a proposed P&S to be fulfilled within 60 days, unless otherwise agreed.
During 120 day option period, municipality or its assignees have the right to enter upon the land for surveying and inspecting, including soil testing. No sale shall be consummated until 120 days have passed or unless notice of non-exercise has been recorded and no sale shall be consummated if the terms differ from the P&S which accompanied the notice of intent.
SECTION 7.
(Chapter 61A) Provides greater DEM oversight of forestry land enrolled under Chapter 61A.SECTIONS 8, 17.
(Chapter 61A, 61B) Extends the time during which a change of use preceding the tax year shall disallow the application from "October first and December thirty-first" to "October first and June thirtieth."SECTIONS 9, 18.
(Chapter 61A, 61B) Deletes the provision regarding timeliness of application during a reevaluation year.SECTION 10.
(Chapter 61A) Specifies that this chapter allows the Commissioner of Revenue to expend funds for the Farmland Valuation Advisory Commission, and removes the condition that such funds be appropriated from "the agricultural purposes fund."SECTIONS 11.
(Chapter 61A) Specifies that property purchased for ag. & hort. use and thus exempted from the conveyance tax must continue in such use for at least 10 consecutive years.SECTIONS 12, 13.
(Chapter 61A) Specifies that municipalities, the Commonwealth, and non-profits shall not be subject to conveyance or roll-back taxes for that portion of chapter property (including a less than fee interest) which they acquire by any means for a public purpose and which is not converted to commercial, residential or industrial use, but that such taxes shall be paid by non-profits for any portion of the property which is so converted.SECTIONS 14, 23.
(Chapter 61A, 61B) Prevents assessment of roll-back tax if the amount is less than $10.SECTION 15.
(Chapter 61A) See description above under Section 6.SECTION 16.
(Chapter 61A) See description above under Section 4.SECTION 17.
(Chapter 61B) See description above under Section 8.SECTION 18.
(Chapter 61B) See description above under Section 9.SECTION 19.
(Chapter 61B) Requires all recording fees pursuant to this chapter to be paid by the landowner.SECTION 20.
(Chapter 61B) Specifies that property purchased for recreational use and thus exempted from the conveyance tax must continue in such use for at least 10 consecutive years. Specifies that municipalities, the Commonwealth, and non-profits shall not be subject to conveyance tax for that portion of chapter property (including a less than fee interest) which they acquire by any means for a public purpose and which is not converted to commercial, residential or industrial use, but that a conveyance tax shall be paid by non-profits for any portion of the property which is so converted.SECTION 21.
(Chapter 61B) Exempts from the conveyance tax transfers by will, mortgage foreclosure, by tax deeds, deeds between immediate family with no consideration paid, etc.SECTION 22.
(Chapter 61B) Reduces the window for roll-back taxes from 10 years to 5 years, to conform with the other Chapters. Specifies that municipalities, the Commonwealth, and non-profits shall not be subject to roll-back taxes for that portion of chapter property (including a less than fee interest) which they acquire by any means for a public purpose and which is not converted to commercial, residential or industrial use, but that roll-back taxes shall be paid by non-profits for any portion of the property which is so converted.SECTION 23.
(Chapter 61B) See description above under Section 14.SECTION 24.
(Chapter 61B) See description above under Section 6.SECTION 25.
(Chapters 61, 61A, 61B) Clarifies that the extension of the right of first refusal option to two years beyond enrollment shall commence with the tax year starting July 1, 1999.[END OF BILL]