Taxation in Massachusetts

Massachusetts has four types of taxes: individual taxes, business taxes, sales taxes, and property taxes.

Tax reductions in Massachusetts

Massachusetts allows for tax reductions based upon different factors.

Forestry, agriculture, and recreation

Chapter 61 is a voluntary current use program designed by the Massachusetts Legislature to tax real property in the Commonwealth of Massachusetts at its resources value rather than its highest and best use (development) value. Landowners who enroll their land in the program receive property tax reductions in exchange for a lien on their property.

There are three types of Chapter 61 programs:

• Chapter 61: Forestry
• Chapter 61A: Agriculture
• Chapter 61B: Open space and recreation

Forestry

In order to qualify for the Chapter 61 program, a parcel of real property must be at least 10 acres (40,000 m²) contiguous and under the same ownership. Prior to approval, the landowner must establish a forest management plan for the affected property and have it approved by a state certified forester. Only the wooded and undeveloped portions of the land may be enrolled in the program. The tax reduction is based upon the market value of the potential forestry products the land can produce.

Agriculture

The property for agricultural use must be at least 5 acres, and the reduction in tax is based on the market value of farm products the land can support. The land may also be used for forestland, but, if so, the landowner must produce a 10-year forest management plan.

Open space and recreation

The property for open space and recreation must be at least 5 acres. The tax reduction is 75% of its assessed value, and working with forest management is optional.

References

• Massachusetts General Laws Chapter 61 Classification and Taxation of Forest Lands and Forest Products.