During the last weeks of December, an amendment to the Chapter 61 law was passed by the legislation and approvedThese changes became effective on March 22nd 2007 with taxation changes effective January 1, 2008The aim of the amendment is to make the Chapter programs more simple and landowner-friendly in order to increase classification of forestland and extend the length of participation in the programs.

Among other things the amendment provides for:

• Elimination of the 8% stumpage tax and DCR filing fee for Ch61 land
• Landowners to switch enrollment in the programs Ch61, Ch61A, Ch61B without penalty
• Removes the assessors ability to reject a forest management plan and have DCR service foresters determine whether the land's management meets silvicultural standards
• Requires that Ch61 taxes are based on the value of forest land as determined by the Farm Land Value Advisory Commission, as now exists under Ch61A
• A uniform penalty/repayment for all three chapters when enrolled land is developedRequires that, in order to develop a parcel, the landowner make repayment of the most recent five years of deferred tax with 5% interest or a conveyance tax (as currently required under Ch61A), but not bothExisting Ch61A parcels would be grandfathered at 0% interest for withdrawals
• A uniform set of language for all chapters concerning a town's right of first refusal by defining what qualifies as a bona fide offer, setting a process for fairly determining the value of land and providing clear deadlines for the right of first refusal
• Limiting rollback taxes to changes of use not consistent with any of the chaptersWithdrawal from current use without a change in actual use will not result in a rollback penalty if the use remains unchanged for 5 years

The amendment was supported by The Massachusetts Forestry Association, Mass Audubon, The Nature Conservancy, The Trustees of Reservations and the Massachusetts Assessors Association among others

Learn More

• Chapter 61 Fact Sheet - MA Farm Bureau
• For a list of frequently asked questions go to http://masswoods.net/
• Timber Tax Questions