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Connecticut

For the complete text of Connecticut statutes and other property tax information please refer to the Connecticut Department of Revenue.

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.

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 (Sec. 12-96, G.S.).

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 (Sec. 12-97, G.S. and Sec. 12-98, G.S.).

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.

Classification of land as forest land: (Sec. 12-107d)

If the conditions above are met the owner of land must file a written application with the State Forester for its designation by the State Forester as forest land. To apply for the lands classification as forest land on any assessment list of a municipality the owner must file a written application for such classification with the assessor not earlier than thirty days before nor later than thirty days after the date of such assessment list.

Conveyance Tax: (Sec 12-504(b))

Any land sold, which has been classified as forest land pursuant to section 12-107d, 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. 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) Ten per cent of said total sales price if sold within the first year of ownership;

(2) nine per cent if sold within the second year of ownership;

(3) eight per cent if sold within the third year of ownership;

(4) seven per cent if sold within the fourth year of ownership;

(5) six per cent if sold within the fifth year of ownership;

(6) five per cent if sold within the sixth year of ownership;

(7) four per cent if sold within the seventh year of ownership;

(8) three per cent if sold within the eighth year of ownership;

(9) two per cent if sold within the ninth year of ownership; and

(10) one per cent 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.

Open-space land: (Sec. 12-107(b))

Special provisions also apply to open-space lands. Open space lands is any area of land, including: forest land; land designated as wetland under sec. 22a-30, G.S. 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. 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.

Land owners applying for open-space land Connecticut property tax relief must hire certified foresters to evaluate the property for conformity with forest stocking, distribution, and condition standards established by the State Forester. Owners of designated forest land must include a copy of the certified forester's report in any application to a town assessor to have the property classified as forest land on the town grand list.

Valuation and Assessment:

The present true and actual value of land classified as 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.

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 Sec. 12-96, and give the owner of the property notice of the value determined (Sec. 12-102, G.S.).

Yield Tax:

Owners of forest land must pay a yield tax on the proceeds of the sale of timber cut from the land. In the case of timberland bearing timber of more than ten years growth, the rate of yield tax is as follows:

from one to ten years after the land has been classified as woodland, 2% of the yield;

from 11 to 20 years after the land has been classified as woodland, 3% of the yield;

from 21 to 30 years after the land has been classified as woodland, 4% of the yield;

from 31 to 40 years after the land has been classified as woodland, 5% of the yield;

from 41 to 50 years after the land has been classified, 6% of the yield;

more than 50 years after then land has been classified, 7% of the yield.

In the case of woodland bearing timber of ten years growth or less, the yield tax is imposed at the rate of 10% of the yield.

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 (Sec. 12-100, G.S.).

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 (Sec. 12-101, G.S.). 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.