Massachusetts House Bill H41

Massachusetts 2023-2024 Regular Session

• Introduced: 2/9/23
• Refer: 2/9/23
• Report Pass: 4/27/23

Caption

Proposal for a legislative amendment to the Constitution relative to agricultural and horticultural lands

Impact

If enacted, this amendment could have far-reaching consequences for local property taxes related to agricultural lands in Massachusetts. The bill specifies criteria for lower valuations: parcels must be actively used for agriculture or horticulture for two years prior to the tax year. The implications of this change could be particularly beneficial for smaller municipalities, as the bill allows such reductions in tax valuation for lands that meet certain size and usage conditions. This could help bolster the agricultural economy and provide financial relief to landowners engaged in these sectors.

Summary

House Bill H41 proposes a significant amendment to the Massachusetts Constitution concerning the taxation of agricultural and horticultural lands. The bill aims to give the General Court full authority to establish valuation methods for these lands based on their agricultural or horticultural uses rather than their fair market value. This legislative change is pertinent as it seeks to support land that is actively engaged in agricultural or horticultural activities by allowing lower valuation for tax purposes, which may incentivize the preservation and utilization of these lands in productive ways.

Contention

While supporters advocate for the protection and promotion of agricultural lands during a time of urban sprawl, there may be contention surrounding the fairness of tax valuations and the impact on local government revenues. Critics may argue that the flexibility in taxation could disproportionately benefit larger farming operations and affect municipal budgets. Furthermore, there may be discussions on whether such amendments could encourage land speculation or misuse, where owners may take advantage of lower tax rates irrespective of genuine agricultural use.