Eligible Land Uses: Description of Method of Preferential Treatment:
Forest Land/Timber Production
Description of Penalty:
For forest land in the program, the tax rate is the local rate, up to 10 mills, and is imposed on the original value of the land, excluding the value of the timber. Timber when cut is subject to a yield tax.
The yield tax is graduated yield tax beginning for yield taken in the first 10 years after classification at 2% of stumpage value, increasing 1% for each 10 year period after classification, up to 7% after 50 years.
Upon participating in the program for 50 years, the land is re-assessed and the annual tax due shall not exceed the annual tax due for a similarly situated landowner under the state's other forest conservation program known as P.A. 490.
State Funding for Local Tax Loss:
If land is not properly maintained, the classification is cancelled, a tax at the rate of five mills for each year the land was classified is imposed on the difference in value established at the time of classification and the valuation for future taxation.
Plot/Land Size Criteria:
Local government covers all of its tax loss
Multi-Year Commitment Criteria:
Woodland or land suitable for forest planting not less than 25 acres in area and not exceeding in value $100 per acre exclusive of the timber, may, upon application of the owner, be given special classification as forest land for purposes of taxation.
When the value of the land alone exceeds $100 per acre, it is no longer classified as forest land.
Source State Statutes:
Landowners make a 100-year commitment to preserving the land as forest and not commercially harvest the timber.
CT. Gen. Stat. § 12-96 ~ § 12-100 (in effect for 2018)