Connecticut

Property Classification

Connecticut statutes make no specific provision for classification of property, other than to allow for the special classification of agricultural land, timberland, and open-space land for assessment on the basis of their use value.

Classification of land as forest land

Forest Land Classification (CT Gen Stat § 12-107b): means any tract or tracts of land aggregating twenty-five acres or more in area bearing tree growth that conforms to the forest stocking, distribution and condition standards established by the State Forester pursuant to subsection (a) of CT Gen Stat § 12-107d, and consisting of (A) one tract of land of twenty-five or more contiguous acres, which acres may be in contiguous municipalities, (B) two or more tracts of land aggregating twenty-five acres or more in which no single component tract shall consist of less than ten acres, or (C) any tract of land which is contiguous to a tract owned by the same owner and has been classified as forest land pursuant to CT Gen Stat § 12-107b.

The property owner files his application with the assessor on a form prescribed by the assessor and approved by the Commissioner of the Department of Energy & Environmental Protection. The application should be accompanied by a qualified report by a certified forester (person having completed satisfactory training related to certification policies and standards). In the report, the certified forester is required to evaluate the property for conformity with forest stocking, distribution, and condition standards established by the State Forester.

Classification of land as 10-Mill forest land

Owners of woodland or land suitable for forest planting of "not less than twenty-five acres" in area may apply for classification of their property as forest land, provided the value of the land itself, exclusive of timber growing on it, does not exceed $100 per acre (CT Gen Stat § 12-96).

The rate of tax on forest land is limited to 10 mills (the local rate is applicable if lower). The rate is applied to the value of the land itself, excluding the value of the timber (CT Gen Stat § 12-97, and CT Gen Stat §12-98).

For lands under 25 acres or whose per acre value exceeds $100.00 are not eligible to be classified as forest land and as such will be taxed the same as other property.

In 1913, the legislature approved the "10 Mill Law" as an early effort to conserve forests in Connecticut. Although there is no longer any forested land in the state having a value at or below $100/acre, the Law remain valid, but no new land may be classified under it.

Classification of land as open-space land

Special provisions also apply to open-space lands (CT Gen Stat § 12-107(e)). Open space lands is any area of land, including: forest land; land designated as wetland under CT Gen Stat §22a-30 and not excluding farm land, the preservation of the use of which would (a) maintain and enhance the conservation of natural or scenic resources, (b) protect natural streams or water supply, (c) promote conservation of soils, wetlands, beaches or tidal marshes, (d) enhance the value to the public of abutting or neighboring parks, forests, wildlife preserves, nature reservations or sanctuaries or other open spaces, (e) enhance public recreation opportunities, (f) preserve historic sites, or (g) promote orderly urban or suburban development. Land designated as open space land by municipal planning commissions or similar entities of local government. The owners of land within such areas must apply for its classification as open space land, and failure to apply constitutes a waiver of the right to open-space land classification.

Landowners applying for open-space land classification files a written application with the assessor. The assessor shall determine whether it is qualified. The application shall be made upon on a form prescribed by the Commissioner of Agriculture and shall set forth a description of the land, a general description of the use to which it is being put, a statement of the potential liability for tax under the provisions of CT Gen Stat §§ 12-504a to 12-504f, inclusive, and such other information as the assessor may require.

Valuation and Assessment:

The present true and actual value of land classified as forest land or as open space land is based upon its current use without regard to neighborhood land use of a more intensive nature. Every five years the recommended Forest Land valuation is determined by the State Forester based upon established tree growth rates and recent market value of standing timber in Southern New England.

Assessors are required to separately determine the value of the land and the value of the timber for land that has been classified as forest land pursuant to CT Gen Stat § 12-96, and give the owner of the property notice of the value determined (CT Gen Stat § 12-102).

Any land sold, which has been classified as forest land pursuant to CT Gen Stat § 12-107d or open space land pursuant to CT Gen Stat § 12-107e, within a period of ten years from the time title was first acquired or from the time the land was first classified, whichever is earlier, shall be subject to a conveyance tax applicable to the total sales price of such land (CT Gen Stat § 12-504(a)). The conveyance tax is in addition to the tax imposed under sections 12-494 to 12-504.

The conveyance tax shall be at the following rate:

(1) 10% of said total sales price if sold within the first year of ownership;

(2) 9% if sold within the second year of ownership;

(3) 8% if sold within the third year of ownership;

(4) 7% if sold within the fourth year of ownership;

(5) 6% if sold within the fifth year of ownership;

(6) 5% if sold within the sixth year of ownership;

(7) 4% if sold within the seventh year of ownership;

(8) 3% if sold within the eighth year of ownership;

(9) 2% if sold within the ninth year of ownership; and

(10) 1% if sold within the tenth year of ownership by such record owner.

No conveyance tax shall be imposed by the provisions of sections 12-504a to 12-504f, inclusive, following the end of the tenth year of ownership by such record owner.

Owners of forest land must pay a yield tax on the proceeds of the sale of timber cut from the land (CT Gen Stat § 12-97). In the case of timberland bearing timber of more than ten year's growth, the rate of yield tax is as follows:

Number of Years Since Land Has Been Classified as Woodland	Percent of the Yield
1-10 years	2%
11-20 years	3%
21-30 years	4%
31-40 years	5%
41-50 years	6%
51+	7%
Bearing timber of 10 year's growth or less	10%

This tax does not apply to material cut for domestic use as fuel or for the construction of fences, buildings or other improvements on property held by the same owner and also taxed as woodland (CT Gen Stat § 12-100).

Yield taxes and the land portion of the tax on woodlands are due at the same time as other property taxes.

Property and yield taxes relating to timberland are administered, assessed and collected in the same manner as other property taxes (CT Gen Stat § 12-101). In addition, timber standing on the land and timber products cut from the land are subject to lien for unpaid taxes. Cut timber products are subject to seizure wherever found if necessary to satisfy unpaid taxes.

• Nichols, J. 2015. Public Act 490: A practical guide and overview. Connecticut Farm Bureau Association, Wethersfield, CT.

• Connecticut Department of Agriculture. Public Act 490 - The basics. https://portal.ct.gov/DOAG/Commissioner/Commissioner/Public-Act-490---The-Basics

• Connecticut Department of Energy & Environmental Protection. 2016. Act concerning the transition from the ten mill program. https://www.ct.gov/deep/lib/deep/forestry/landowner_assistance/forestland_taxation/Ten_mill.pdf

• Connecticut Department of Energy & Environmental Protection. 2019. Classifying Your Woodland as Forest Land for Property Tax Purposes.

• Connecticut Department of Energy & Environmental Protection. 2014. Examining land for classification as Forest Land.