You want to know how municipalities tax land classified as open space.

Municipalities tax land based on its value, but apply a different standard to determine the value of land classified as open space, farm, and forest land. They tax most land based on its fair market value, which is the price an interested buyer would be willing to pay and an interested seller would be willing to accept on the open market.

On the other hand, they tax classified land based on its current use value or the price of property as it is currently constituted. Current use value does not include external factors, such as neighboring development. External factors may drive up fair market value since developers may be willing to pay a higher price to buy and develop the land. Assessing land based on its current use value yields a lower assessment and, consequently, a lower tax bill than if it were taxed based on its fair market value.

Towns classify land as open space, farm, or forest under the 490 program, which is the popular name for PA 63-490, the public act that created it. Owners of farm and open space land must apply to the municipal tax assessor for the classification while owners of forest land must apply to the state forester (CGS § 12-107e). Municipalities do not need to consult the state when granting open space classifications, according to Cathy Rubenbauer at the Office of Policy Management (OPM). OPM does not keep records of which municipalities classify land as open space.

A property qualifies for the open space classification if it is located in an area the town’s planning commission designated as open space in the municipality’s plan of conservation and development. The commission may designate the area as open space if doing so would (1) maintain and enhance natural or scenic resources; (2) protect streams or water supplies; (3) promote soil conservation; (4) enhance the value of parks, forests, other open spaces, public recreation, or historic sites; or (5) promote orderly development (CGS § 12-107b). If a property is located in a designated area, its owner may petition the assessor to tax the property based on current use value (CGS § 12-107e(b)).

Properties used for different recreational purposes may qualify for the open space classification. For example, a rod and gun club may qualify if the municipality’s planning commission designated the property as open space on the town’s plan of conservation and development and it enhances the value of parks or public recreation. A boys and girls camp may be exempt from local property taxes altogether under the property tax exemption for charitable organizations (CGS § 12-81). The camp qualifies for this exemption if (1) it is owned by a nonprofit organization used exclusively for scientific, educational, literary, historical, or charitable purposes, and (2) at least 75 percent of the its attendees are Connecticut residents.

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