Conservation Options

Conservation Options for Central Massachusetts Landowners- What's Right for you (Excerpts from)

By Massachusetts Audubon Society & the Forest Stewardship Program
Revised, November 1998

"...A residential building boom has spread to the Central Massachusetts area where construction rates are at their highest. If we fail to protect our open space now, future generations may not be able to enjoy them. Clean air and water, forest and agricultural lands, wildlife habitat, and the aesthetic values of open space that we cherish will be at risk if development presssures continue at their present rate. ...This booklet lists the basic options for Central Massachusetts landowners who want to conserve their land for future generations."

Getting to Know Your Land

"Land conservation begins with education. Learn all you can about your woodland and its values--both ecological and economic. Before you decide to protect your land, either for short-term or long-term, think about what special features your land has. Decide what you would like to preserve and what resources can be managed on your land.

One starting point is the Massachusetts Forest Stewardship Program, an educational program for forest landowners, encouraging long term planning and active stewardship of private lands for a broad range of forest values. The program centers around a 10-year stewardship plan. Technical and financial assistance is available for stewardship projects, including enhancement for wildlife habitat, recreational and aesthetics, wood production, and soil and water protection. For more information contact a service forester at:

Massachusetts Forest Stewardship Program
Department of Environmental Management
436 West Street, Amherst MA 01002
Phone:413-256-1201 Fax:413-253-4375"

"Every landscape is different, and so is every landowner. There are many options available to help protect your land in order to suit your needs. The different conservation options may even be used in combination as an individualized plan just for you. The key conservation options available in Massachusetts are outlined in this booklet, but other options may also help to protect your land."

Property Tax Savings and Land Conservation

Affording to Keep Your Forestland

"Your land may be able to produce income that in turn will help you to pay property taxes and other management costs. Or, by demonstrating your long-term intentions not to develop it--through an active timber management program--you can reduce the assessed value and the tax burdern."

Chapter 61, 61A, and 61B

"Chapter 61, 61A, and 61B are all voluntary enrollment programs for preferential tax assessment based on current use of the land. Forestland, agricultural land and recreational lands are elligible for tax reduction. In order to qualify for Chapter 61, landowners must have 10 acres that are suitable for timber production; Chapter 61A requires a 5 acre minimum of agricultural land which must produce a minimum amount of agricultural products; Chapter 61B is for at least 5 acre recreational areas to be maintained in a substantially natural, wild, or open condition designed for the preservation of wildlife and natural resources. For more information contact a service forester at: DEM Forest & Parks, PO Box 155, Clinton, MA 01510, or call (978)368-0126. For advice regarding local property assessment contact Marilyn Brown, Chief of Local Assessment, Mass. Dept. of Revenue (617)626-2334."

For Short-term Land Protection and Property Tax Savings:

"Classification in any of these programs does not reduce value for estate purposes."

Chapter 61	Forestlands managed for wood production (10 acre minimum)	95 percent property tax savings. You pay 5 percent of the tax on managed property. 10 year management plan required.
Chapter 61A	Agricultural and horticultural land (5 acre minimum)	Property tax savings based on commercial rate and valued agricultural/horticultural use. Apply each year.
Chapter 61B	Recreational lands (5 acre minimum) Golf courses, camps, etc.	75 percent property tax savings. Apply each year.

Conservation Restrictions and Gifts of Land

Protection in Perpituity

"A conservation restriction is a legal agreement between a landowner and a qualified conservation organization or government agency that permanently limits a property's use in order to protect its conservation values. Conservation restrictions are permanent; they remain in effect even if the land is sold or donated. A land trust or government agency ensures the restriction is followed."

"By placing a conservation restriction on your land, or making a gift or bargain sale of the land to an IRS-recognized conservation organization, you can reduce income taxes paid in the short-term and your heirs can avoid having to develop land to pay estate taxes in the long-term. These are powerful tools for ensuring that land will never be developed.

For Long-term Land Protection, Property Tax and Estate Tax Savings

"Conservation Restrictions:

• (They) Permanently protect land for conservation purposes. CRs restrict land "in perpituity"; deed restrictions are in effect for a maximum of 30 years.
• (They) May reduce property tax by limiting the uses allowed on the property.
• (They) Reduce federal income tax by deducting fair market value of gift restriction.
• (They) Reduce estate tax because of restricted use of property."
  

• (They) Permanently protect land.
• (They) Remove property tax liability.
• (They) Reduce federal income tax by deducting fair market value of the gift.
• (They) Reduce estate tax by removing property from estate."

"All of these issues are complex and require the services of an attorney, but this summary will help give you some direction for tax savings and land conservation."