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S 2084

Relates to requiring municipalities to determine whether it is in the public interest to create and periodically update a comprehensive plan

2025 Regular Session Introduced by Brian Kavanagh

Exempts the value increase from constructing qualifying farm facilities on 61A land from local property tax for up to 5 years, with roll-back if use changes.

REFERRED TO LOCAL GOVERNMENTS
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Bill Summary · S 2084

Summary — S. 2084 (2025)

Short title (in text): An Act relative to exemption from taxation structures and buildings essential to the operation of agricultural and horticultural lands.

Note on source inconsistencies: The provided metadata includes several conflicting items (an unrelated municipal planning title, a separate “Medicare and Medicaid Dental, Vision, and Hearing Benefit Act of 2025” citation, and sponsor names that appear to be federal). The bill text included here — and summarized below — clearly amends Massachusetts General Laws, chapter 61A, section 15, to change tax-exemption rules for farm-related structures. Readers should verify the official bill document for final titles, sponsors, and legislative dates.

Purpose / Intent

To expand and clarify tax-exemption treatment for certain structures and buildings located on land valued and taxed under Chapter 61A (agricultural/horticultural land), by exempting from local property taxation the increase in assessed value attributable to construction or reconstruction of qualifying farm structures for a specified period and setting application and roll‑back rules.

Key provisions

  • Replaces existing Chapter 61A, section 15 with new language governing taxation of buildings on land assessed under Chapter 61A.
  • Exemption rule (section b):
    • Structures and buildings that are “essential to the operation” of land actively devoted to commercial agriculture, aquaculture, silviculture, horticulture, floriculture, or viticulture, and that are constructed or reconstructed after July 1, 2015, are exempt from local property tax to the extent of any increase in value caused by such construction/reconstruction.
    • The exemption for that increase in value is provided for a period of 5 years (per subsection b).
  • Definition of “structures and buildings” includes (non‑exhaustive):
    • Facilities used directly in raising/production for sale, storage, processing, or retail merchandising of commodities produced in the Commonwealth;
    • Employee housing for essential farm employees (but not the owner/applicant’s residence);
    • Indoor exercise arenas for training/schooling horses (not riding academies or dude ranches);
    • Structures for maple syrup production;
    • Structures for honey and beeswax production, including bee storage.
  • “Agricultural” explicitly includes raising, breeding and boarding of livestock, including commercial horse boarding operations.
  • Application and approval (subsection c):
    • Owner must apply on a commissioner-prescribed form to the municipal assessor on or before the municipality’s taxable status date and within one year of completion of construction/reconstruction.
    • Assessors approve if satisfied the structure qualifies.
  • Duration, continued use and roll‑back (subsection d):
    • An exemption continues only while the qualifying use exists, but “in no event for more than 10 years.” (Note: subsection b limits the new-construction exemption to 5 years while subsection d contains a 10‑year cap; this creates an ambiguity discussed below.)
    • If land or buildings convert to non‑agricultural use during the exemption period, roll‑back taxes apply. Roll‑back taxes are computed by applying the applicable tax rate for each prior year to the assessed valuations recorded on the exempt portion of the assessment roll and collected like other taxes.

Who is affected

  • Primary: Owners/operators of agricultural, horticultural, aquacultural, silvicultural, floricultural, viticultural lands in Massachusetts who construct or reconstruct qualifying structures after July 1, 2015.
  • Municipal assessors and local tax-levying bodies (responsible for processing applications, tracking exemptions on rolls, and calculating/collecting roll‑back taxes).
  • Potential short-term reduction in local property tax revenues to the extent of exempted value increases; potential recapture if uses convert.

Fiscal and policy considerations

  • Short-term tax relief/incentive for farm capital investment (construction/reconstruction).
  • Municipalities must track exempted values and be prepared to compute roll‑back amounts where land use changes.
  • The text contains a potential inconsistency: subsection (b) sets the exemption for increases in value at 5 years, while subsection (d) allows an exemption to continue “only while” use is met but “in no event for more than 10 years.” This could leave uncertainty about maximum exemption duration; legislative or administrative clarification may be needed.

Legislative status & timeline (as provided)

  • Bill number: S. 2084. Text filed Jan 9, 2025 (Senate Docket No. 207).
  • Actions listed include: Passed Senate (May 28, 2025); Delivered to Assembly and referred to Local Governments; hearing scheduled July 15, 2025 (Finance Committee hearing entry also noted). Metadata contains conflicting dates and entries; confirm current status in the official legislative docket.

Related bills noted in file: SD 207 (replaces), S. 9073 (prior session), A. 49 (companion).

Compiled from official sources — confirm details with the bill’s official record.

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