Forest Incentive Programs - Property Taxes for Massachusetts

Type of Tax

Three timber tax programs, 61 is a reduction in Fair Market Value (5% of FMV) combined with an 8% yield tax, 61a is a fixed value for forestland combined with agriculture or horticulture land, and 61b is a reduction in FMV (25% or less of FMV) for lands that are open for recreation.

Law

Classification and taxation of forest lands and forest products (G.L. 61 and 61A)

Recreation land and uses (G.L. 61B)

Objective

To give favorable treatment to a landowner willing to keep forest land undeveloped and manage that land under a long-term strategy

Requirements

Minimum of 10 acres under timber tax 61 (minimum of 5 acres under 61a and 61b)

Minimum of 16.7% stocking or 500 trees/acre under program 61

10 year forest management and cutting plans certified by the State Forester under program 61

Must have evidence of use for 2 years preceding application and generate an income of $500/year and $0.50/acre/year above 5 acres under program 61a

Must renew annually under program 61b and under program 61 the land must be recertified every 10 years.

If use changes the penalty is a rollback tax for the previous 4 years under 61a, up to 10 years under 61b, and 5 years or since last certification under 61.

Under program 61a and 61 b there is a conveyance tax of 10% of sale price in year one of forest classification, decreasing by 1% for every year classified unless buyer agrees to continue in program.

Program Administration

The Department of Revenue administers the rules and regulations. The Department of Forestry is responsible for the certification of forest management and cutting plans. The County Tax Assessors are responsible for filing applications and usage classifications. The Municipal districts are responsible for filing copies of applications. Private forestry consultants create management plans.