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MA Current Use Forest Tax Program

State and local tax laws in Massachusetts can present a real threat to long term, sustainable forest management. Private non-industrial forestlands have been placed under 100 percent ad valorem assessment systems. This mandates the assessment of all land at "full and fair market value". This presents a problem for owners of forestland because the market value of the land for its "highest and best use" is usually greater than the value of the land growing trees. The potential negative impacts of this tax structure are forced timber liquidation, fragmentation of our forests, and development of previously forested land.

The Massachusetts Current Use Forest Tax Law, (Chapter 61), is designed to give favorable treatment to a landowner willing to keep forested land undeveloped and manage that land under a long-term strategy. Land which is classified under Chapter 61 is assessed at five percent of the fair market value or at $10 per acre, whichever is greater. Chapter 61 defers payment of a portion of taxes until timber is cut and income is realized. At that time, an eight percent tax on the products harvested is paid to the town in which the property is located.

To insure that land under Chapter 61 is actually managed for the long-term production, there is a penalty for withdrawal from the program. This penalty consists of payment for the difference between taxes paid and taxes deferred plus interest. The penalty will range from a minimum five years or the number of years under certification, to a maximum of ten years.

In order to qualify for the Chapter 61 program, a landowner must have 10 or more contiguous acres of forest land and a long-term commitment to improving the "quality and quantity" of timber on that land. Other values such as wildlife, aesthetics, and recreation can also be incorporated into the management goals of the property through the Forest Stewardship Program. An approved, forest management plan describing and mapping property resources and making management recommendations objectives is required to guide management of the property. This plan is based on the landowners objectives and is renewed every ten years to reflect changing conditions, goals, etc. Click HERE to view a sample Chapter 61/Stewardship Plan.

The Chapter 61, and related 61A and 61B, programs are designed to help landowners afford to maintain farms, natural areas, and working forests. If you and your family have a long-term approach to the management of your land, please contact Your Service Forester or review the Chapter 61 law for more information.