Massachusetts Senate Bill S1936

Massachusetts 2023-2024 Regular Session

• Introduced: 2/16/23
• Refer: 2/16/23

Caption

Relative to exemption from taxation structures and buildings essential to the operation of agricultural and horticultural lands

Impact

The bill is anticipated to have significant implications for farmers and agricultural businesses within Massachusetts. By exempting critical structures essential to agricultural productivity from property taxes, the legislation is designed to encourage investments in rural infrastructure. This financial cushion is expected to incentivize agricultural enterprises, potentially leading to increased production and sustainability of farming activities in the region. Nevertheless, this measure could shift tax burdens onto other sectors or necessitate adjustments in local government budgets reliant on property tax revenues.

Summary

Senate Bill S1936 proposes an amendment to Chapter 61A of the Massachusetts General Laws that seeks to provide tax exemptions for structures and buildings that are essential to the operation of agricultural and horticultural lands. This bill is particularly focused on those buildings constructed or reconstructed after July 1, 2015, which will be exempt from taxation concerning any increase in their value due to such construction or reconstruction for a duration of five years. The bill aims to enhance the financial viability of agricultural operations by reducing property tax burdens.

Contention

While proponents of SB S1936 argue that the bill supports local agriculture and boosts the rural economy, opponents may raise concerns regarding its potential to unevenly distribute tax burdens. Critics could question whether these tax exemptions might disadvantage non-agricultural property owners or if the long-term impacts on municipal budgets have been adequately assessed. Additionally, the specificity of the bill in allowing tax exemptions only for structures built after a specific date may generate debates about fairness for existing agricultural entities that have not benefited from these provisions.