Amendment #169 to H4461

Agricultural Estate Tax Valuations

Representatives Hogan of Stow, Schmid of Westport, Haddad of Somerset, Koczera of New Bedford, Orrall of Lakeville, Dykema of Holliston, Walsh of Framingham, Pignatelli of Lenox, Dooley of Norfolk, Poirier of North Attleborough, Kocot of Northampton and Ashe of Longmeadow move to amend the bill by adding the following new section:

SECTION XX. Section 5 of chapter 65C of the General Laws, as appearing in the 2014 Official Edition, is hereby amended by striking out subsection (c) and inserting in place thereof the following 2 subsections:-

(c) If the gross estate of a decedent includes real property devoted to use as a farm for farming purposes, the estate may elect to value such property either in accordance with section 2032A of the Code, in effect on January 1, 1985, or if the gross estate of a decedent includes real property devoted to use for closely held agricultural land, to value such land in accordance with the valuation set by the farmland valuation advisory commission established under section 11 of chapter 61A for the fiscal year of the most recent growing season. If a federal return is required to be filed the election under this subsection shall be consistent with the election made for federal estate tax purposes. All the substantive and procedural provisions of said section 2032A, shall, insofar as pertinent and consistent, apply to the election made under this subsection. The commissioner shall adopt regulations to carry out the provisions of this subsection and subsection (d).

(d) Land shall qualify for valuation as closely held agricultural land under subsection (c), if it meets the definition of: forest land under chapter 61, land in agricultural or horticultural use under chapter 61A, or recreational land under chapter 61B that is also used for farming or agriculture, as defined in section 1A of chapter 128; provided that the land need not be classified by municipal assessors as forest land under chapter 61, land in agricultural or horticultural use under chapter 61A, or recreational land under chapter 61B, to qualify for valuation as closely held agricultural land under subsection (c), if it otherwise meets the applicable definitions.

When land valued as closely held agricultural land under subsection (c) no longer meets the definition of forest land under chapter 61, land in agricultural or horticultural use under chapter 61A, recreational land under chapter 61B that is used for farming or agriculture as defined in section 1A of chapter 128, the land shall be subject to roll-back taxes in the current tax year in which it is disqualified and in those years of the 9 immediately preceding tax years in which the land was so valued.  Roll-back taxes shall be calculated under section 7 of chapter 61 for forest land, under section 13 of chapter 61A for lands in agricultural or horticultural use under chapter 61A, or under section 8 of chapter 61B for recreational land that is used for farming or agriculture, as defined under section 1A of chapter 128.

SECTION XXX. Section XX shall be effective for tax years beginning on and after January 1, 2017.