HISTORY AND LEGISLATIVE INTENT
Public Act 490 due October 1sr

State Statute 12-107a, etc.

In the 1960's it became apparent that Connecticut was rapidly losing open land to developers due to the disproportionate tax burden.  In 1963 Connecticut General Assemble passed what is commonly referred to Public Act 490, in order to prevent the forced conversion of farm, forest and open space lands to more intensive uses, and to maintain a natural resource base for future generations.

Section 12-107a essentially states that it is in the public interest to encourage the preservation of farm land, forest land and open space and to prevent the forced conversion of land to more intensive uses.

Public Act 490 provides for the valuation of qualifying land based on its current use.  When land is classified as farm, forest or open space the assessment is based on use value, rather than on its open market value (highest and best use).  Use value assessments are lower than those based upon fair market values. The owners of such land receive preferential property tax treatment.  Connecticut is not unique: every state in the nation has a use value assessment law for farm, forest and open space.

Public Act 490 is codified in the Connecticut General Statutes as State Statutes 12-107a thought 12-107e, inclusive.

• Section 12-107a gives the intent of the legislation;
• Section 12-107b provides general definitions intended to guide the assessor in determining whether or not to  allow the classification;
• Sections 12-107c through 12-107e, inclusive, are the statutes governing the application process for the classification

While not part of Public Act 490, State Statute 12-107f affects open space lands in that it allows certain tax exempt organizations to be exempt for property taxation for any such lands they hold, for the benefit of the public, in perpetuity for education, scientific and aesthetic or other equivalent passive use.

Transfer of Ownership of Classified Lands

Section 12-504a and 12-504b detail the statutory requirements for imposing the additional conveyance tax a town receives if classified lands are sold.  Case law affirms that the additional conveyance tax is due only if there is an actual sale of property, not a transfer of ownership of classified land or a sale of such land for no consideration, and that classification does not cease upon a transfer of title

Statutes governing the classification of "land use" specify that the owner of the land may apply for the classification. 

• Section 12-504f provides that "such classification of land shall be deemed personal to the particular owner who requests such classification and shall not run with the land".
• Section 12-504e provides that additional conveyance tax must be levied if an owner changes the use of the classified land within a ten year period.

Use Values for Classified Farm, Forest and Open Space Land

Every five years, the Office of Policy and Management, in consultation with the Department of Agriculture, issues recommended use value schedules for classified farm, forest or open space land, pursuant to State Statute 12-2b.  These schedules differentiate between types of land and are based, in part on an analysis or rental and lease data from across the state.  Recommended values should be updated commencing October 1, 2005.

Assessors are NOT required to use the recommended values.   However,if the assessor chooses to apply value other than those that are recommended, such values must be developed in compliance with State Statute 12-63.  The assessment must reflect that present true and actual value of classified farm, forest and open space land based upon the land's current use without regard to neighborhood land use of a more intensive nature.  The Statute also provides that the present true and actual value of open space land cannot be less than the value of classified farm land.