The property tax relief programs outlined in Chapters 61, 61A, and 61B of the Massachusetts General Laws offer significant benefits for land used for forestry, agricultural or horticultural, and recreational purposes. Collectively referred to as the Chapter 61 Programs, these statutory initiatives assign a preferential property valuation for assessment purposes, providing a considerable reduction in property taxes compared to land assessed at its highest and best use, in other words, its development potential. For example, forest land placed into Chapter 61 protected status is assessed based on its forestry use rather than its value as buildable lots.
These tax benefits are grounded in the understanding that such land uses deliver valuable public benefits and require fewer municipal resources compared to developed properties. The pages ahead outline an overview of these programs, examining the tax advantages provided, the application and eligibility requirements, and considerations necessary for committing to keep property undeveloped under these classifications.
Tax Relief by Program
The tax relief provided under the Chapter 61 Programs varies depending on the type of land being classified. Under Chapter 61, forest land is assessed based on a value determined annually by the state-appointed Farmland Valuation Advisory Commission (FVAC), which considers the market value of forest products the land can produce. Similarly, under Chapter 61A, agricultural and horticultural land is valued based on its agricultural use, as determined by FVAC, and depends on the potential agricultural products that the land can yield. The valuation methods used under both Chapters 61 and 61A share similar criteria. To estimate your potential tax bill under a Chapter 61 or 61A classification, you can use the Chapter 61/61A Tax Calculator. Recreational land under Chapter 61B is valued according to its recreational use, allowing for a straightforward calculation. Typically, this results in a valuation reduction of at least 75% compared to the land’s assessed value at the highest and best use.
Available data from fiscal year 2017 highlights the impact of the Chapter 61 Programs. For instance, 24 acres of land in Southwick, Massachusetts, without classification, would result in an estimated tax bill of $1,640. However, when enrolled under Chapter 61B, that bill drops significantly to $410. When placed under a Chapter 61 or 61A classification, the tax liability decreases even further to approximately $37.
Eligibility & Applications
There are a few key eligibility requirements that apply across all three Chapter 61 Programs. First, the property must be contiguous, meaning it is not separated by anything other than a public or private road or waterway, and it must be under the same ownership. Second, each program requires a minimum amount of land. For forest land, this minimum is ten acres, whereas for agricultural, horticultural, and recreational land, the requirement is five acres. Certain structures, such as residential buildings and the land directly associated with them, are excluded from the total acreage and will continue to be taxed based on their full assessed value.
Chapter 61 covers land that is devoted towards the cultivation of forestry products, including wood, timber, Christmas trees, and other items derived from forest vegetation. Additionally, it encompasses accessory land, such as wetlands and other non-productive areas, so long as these are not used in a manner deemed incompatible with forest production. To qualify under Chapter 61, the land must be managed pursuant to a forest management plan prepared by a forester and submitted for review and approval by the regional office of the Department of Conservation and Recreation (the State Forester). This plan, which spans ten years, outlines the methods and quantities for harvesting forest products on the property. While the final determination of eligibility for classification rests with the State Forester, regulatory guidelines are available to help landowners assess whether their property may qualify.
Chapter 61A pertains to land used primarily for producing agricultural or horticultural products, such as fruits, vegetables, animals, and products derived from them, including dairy, honey, and maple syrup. Agricultural use involves activities like raising livestock or poultry, and horticultural use encompasses cultivating crops, tobacco, or greenhouse products for human consumption. To qualify, the land must be actively and primarily devoted to these activities, and the farm must meet certain income thresholds. Generally, the annual gross sales must be a minimum of $500 for the first five acres, with an additional $5 required for each subsequent acre of productive farmland.
Chapter 61B pertains to land categorized as either “open space” or land used for recreational activities. Open space refers to land kept in a substantially natural, wild or open condition, or maintained as landscaped or pastureland. Such land is not required to be accessible by the public. On the other hand, land designated for recreational purposes must be open to the public or available to members of a non-profit organization, though landowners may charge a fee for access. Recreational activities allowed under this classification include golfing, hiking, camping, nature studies, and non-commercial pursuits such as horseback riding, hunting, or fishing, provided they do not significantly interfere with the environmental benefits of the land.
The application process varies depending on the type of land. For forest land under Chapter 61, landowners must first secure certification and an approved forest management plan from the State Forester before applying to the local board of assessors. This classification remains valid for ten years. In contrast, for agricultural, horticultural, or recreational land under Chapters 61A and 61B, an annual application must be submitted directly to the local board of assessors.
Conditions to Chapter 61 Classification
Given the aim of the Chapter 61 Programs to encourage conservation of undeveloped land, significant conditions apply when land is sold, or its use is converted to one inconsistent with its classification. First, in cases where the property is sold or repurposed, the municipality is granted a right of first refusal. Second, if the municipality declines to exercise this right, and the land is sold or converted within 10 years of its acquisition date or the earliest date of uninterrupted classified use, tax penalties apply. These penalties include a roll-back tax or a conveyance tax, whichever is greater. However, exceptions exist, such as when the landowner or their immediate family uses part of the property for residential purposes.
A municipality’s right of first refusal is initiated when a landowner decides to sell or repurpose land classified under the program for a use contrary to its current designation – such as residential, commercial, or industrial development – or if the landowner exits the program and alters the land use within one fiscal year of withdrawal. In cases of sale, the municipality may match the price stipulated in an offer. For land conversion to non-Chapter 61 use, the municipality may purchase the property at its full market value, as determined by an independent appraiser. The municipality has 120 days to act on this right from receiving notice of sale or, for conversions, within 120 days after the consideration terms are determined. This right can also be transferred to the state, another political entity, or a non-profit conservation organization.
When the use of classified land changes and the municipality opts not to exercise its right of first refusal, a landowner may be required to pay either a roll-back tax or a conveyance tax.
The roll-back tax applies when classified land is changed to a use that is inconsistent with its Chapter 61 designation. This tax aims to recapture the property tax savings received during the five years immediately preceding the change in use. The tax is calculated as the difference between the property taxes that would have been assessed at the full market value and the reduced tax benefits conferred under the Chapter 61 Program, plus an annual interest rate of 5%. However, if the landowner withdraws the property from the program but continues to use it in a manner that qualifies under any of the Chapter 61 classifications for at least five years following the withdrawal, no roll-back tax will be imposed.
The conveyance tax serves as an alternative to the roll-back tax when classified land is sold or converted to a non-qualifying use, however, the conveyance tax is only applied if it exceeds the roll-back tax. For land classified under Chapters 61 and 61A, the conveyance tax is calculated as a percentage of the sale price or fair market value, starting at 10% if the land is sold or converted within the first year of enrollment or ownership. This percentage decreases by 1% annually, reaching 0% after 10 years. For land classified under Chapter 61B, the conveyance tax is 10% for sales or conversions occurring within the first five years of classification and reduces to 5% for years six through ten. Once a property exceeds the 10-year threshold, a landowner may sell or convert the land without incurring a conveyance tax, although the roll-back tax may still be applicable.
The conveyance tax can be avoided if the new owner commits, through affidavit, to maintaining the land in a qualifying use for at least five years post-purchase. Certain transfers, such as those between spouses or between parents and children where no payment is exchanged, are exempt from this tax. Both the roll-back and conveyance taxes are applicable even if only a portion of the land is sold or converted to a non-qualifying use.
For more detailed guidance on the Chapter 61 Programs, refer to the Frequently Asked Questions on Classified Forest, Agricultural/Horticultural and Recreational Land provided by the Division of Local Services. Additionally, explore the comprehensive Chapter 61 Programs resources available through MassWoods, an initiative managed by the University of Massachusetts Amherst to support private woodlands owners. If you need personalized support or are considering applying for classification under one of the Chapter 61 Programs, we encourage you to contact one of our attorneys for expert advice and assistance.