Amendment ID: S3029-5-R3
3rd Redraft Amendment 5
Exemption from Taxation Structures and Buidlings Essential to the Operation of Agricultural and Horticultural Lands
Messrs. Tarr and Eldridge move that the proposed new draft be amended by inserting after section 9 the following section:-
“SECTION 9A. Section 5 of chapter 59 of the General Laws, as so appearing, is hereby amended adding the following clause:-
Fifty-ninth. (a) For the purposes of this clause, the following words shall have the following meanings unless the context clearly requires otherwise:
“Agricultural”, the activity of raising, breeding and boarding of livestock, including, but not limited to, commercial horse boarding operations.
“Structures and buildings”, structures and buildings or portions thereof used directly and exclusively in the raising and production for sale of agricultural and horticultural commodities or necessary for the storage thereof; provided, however, that a municipality may also vote to include as “structures and buildings” the following: (i) structures and buildings or portions thereof used for the processing of agricultural and horticultural commodities or the retail merchandising of such commodities produced or raised in the commonwealth; (ii) structures and buildings used to provide housing for regular and essential employees and their immediate families who are primarily employed in connection with the operation of lands actively devoted to agricultural and horticultural use, but not including structures and buildings occupied as a residence by the applicant and the applicant’s immediate family; (iii) structures and buildings used as indoor exercise arenas exclusively for training and exercising horses in connection with the raising and production for sale of agricultural and horticultural commodities or in connection with a commercial horse boarding operation; provided, however, that indoor exercise arenas shall not include a horse ranch offering guest lodging and services or a riding academy that solely provides equine riding lessons; (iv) structures and buildings used in the production of maple syrup; and (v) structures and buildings used in the production of honey and beeswax including those structures and buildings used for the storage of bees.
(b) A city or town that accepts this clause may exempt from taxation any increase in value that results from the construction or reconstruction of structures and buildings essential to the operation of land that is actively devoted to the primary purpose of commercial agriculture, aquaculture, silviculture, horticulture, floriculture or viticulture and that is used and occupied to carry out such operation consistent with section 1A of chapter 128 for a period of up to 5 years. A city or town may establish a limit on the value exempt from taxation.
(c) An exemption from taxation under this clause shall be granted only upon an application by the owner of the building or structure on a form prescribed by the commissioner. The applicant shall furnish such information as the municipality’s board of assessors may require. Such application shall be filed with the assessor of the municipality having the power to assess property for taxation on or before the appropriate taxable status date of such municipality and not more than 1 year after the date of completion of construction or reconstruction of structures and buildings. The assessor of the municipality may approve an application upon a finding the applicant is entitled to an exemption. Structures or buildings that receive such approval shall be exempt from taxation as provided under this clause. The assessed value of any exemption granted under this clause shall be entered by the assessor on the portion of the assessment roll provided for property exempt from taxation. An exemption granted pursuant to this clause shall continue, for not more than 5 years, only while such buildings and structures are used and occupied as provided herein.
(d) In the event that land or buildings or structures in agricultural or horticultural use are converted to non-agricultural or non-horticultural use during the period of an exemption granted pursuant to this clause, the structures or buildings upon which the exemption was granted shall be subject to roll-back taxes for the period during which the exemption was operative. The assessors of the appropriate assessing unit shall enter on the taxable portion of the assessment roll of the current year the assessed valuation or valuations of the structures or buildings on which exemption was granted in any prior year or years at the assessed valuation or valuations as set forth on the exempt portion of the assessment roll. The amount of roll-back taxes for structures and buildings subject thereto pursuant to this clause shall be computed by the appropriate tax levying body by applying the applicable tax rate for each such prior year to the assessed valuation, as set forth on the exempt portion of the assessment roll, for such structures or buildings for each such prior year during such period of exemption. Such roll-back taxes shall be levied and collected in the same manner and at the same time as other taxes are imposed and levied under this chapter.”.