AN ACT CONCERNING THE PRESERVATION OF CERTAIN PUBLIC GOLF COURSES AS OPEN SPACE.

AN ACT CONCERNING THE PRESERVATION OF CERTAIN PUBLIC GOLF COURSES AS OPEN SPACE.

This bill provides a property tax break for certain public golf course owners by treating public golf course land like farm, open space, and forest land under the “490” program. The bill defines “public golf course land” as any golf course land consisting of at least 25 acres that is open for public use for golfing, derives at least 50% of its annual revenues from daily fees or group outings, and consists of at least nine golf holes.

The bill provides that per-hole improvements to public golf course land are assessed on a depreciating sliding scale for three years, after which they are assessed as unimproved open space. Buildings and parking lots are assessed at market value.

The bill gives a municipality the right of first refusal when owners of land classified as public golf course land (1) seek to sell the property or (2) plan to change its use.

By law, a conveyance tax is imposed on land in the 490 program (1) when the use that it was classified for changes or (2) that is sold or transferred within 10 years of its classification (with certain exceptions). The bill extends the same conveyance tax penalty, as well as other 490 program provisions, to property classified as public golf course land.

EFFECTIVE DATE: October 1, 2007 and applicable to assessment years commencing on or after October 1, 2007

By law, towns classify land as farm, open space, or forest under the 490 program. The bill adds public golf course land to the program and uses a classification process similar to that for farm land. Under the law, the classification processes for open space (i. e. , not specific to a public golf course) and forest land have additional requirements (see BACKGROUND).

An owner of a public golf course that qualifies under the bill must also apply for a public golf course land classification.

By law, if the assessor determines an applicant's land is farm land, he or she must classify it as such and include it on the grand list (CGS § 12-107c). Presumably, an assessor would also determine that an applicant's land meets the bill's requirements for public golf course land and include it as such.

The bill specifies how public golf course land must be assessed. It provides that the present true and actual value of land classified as public golf course land is based on its value as open space land, plus an assessment based on per-hole depreciated improvements that are reduced by 40% during the first assessment year after application, 60% during the second year, 80% during the third year, and 100% each year after the third. The bill specifies that the reduction does not include buildings and parking lots, which must be assessed at fair market value.

Under the bill, a landowner may apply for classification of his or her land as public golf course land on any municipal grand list by filing a written notice with the assessor no less than 30 days before and no later than 30 days after the assessment date. But in a year in which a revaluation of all real property becomes effective, the application may be filed no later than 90 days after the assessment date.

The bill (1) requires the assessor, upon approval of an application for classification as public golf course land, to file a notice of the classification in the municipality's land records and (2) provides that the filing constitutes a lien on the land for all taxes due on or before such filing.

If a landowner fails to apply for public golf course land classification within the bill's prescribed time limit, he or she is considered to have a waived the right to such classification.

As under current law for 490 land, any person aggrieved by an assessor's denial of land classification as public golf course land has the same rights and remedies for appeal and relief as the law provides for other taxpayers claiming to be aggrieved by the actions of assessors or boards of assessment appeals.

Under the bill, any owner of land classified as public golf course land must notify, via certified mail, the (1) chief elected official, city council, or selectperson; (2) assessor; and (3) municipal zoning commission, planning commission, or combined planning and zoning commission of his or her intention to sell or convert the land to a use other than that of public golf course land. If the owner intends to sell the land, the municipality may match a bona fide offer to purchase the land. If the owner intends to convert the land to a use other than a public golf course, the municipality may purchase the land at its fair market value, as determined by an impartial appraisal. The municipality may assign its purchase option to a nonprofit conservation organization it chooses. The bill prohibits the owner from selling or converting the land until (1) at least 120 days have passed since he or she mailed the required notices or (2) he or she has been notified in writing that the town will not exercise its option to purchase the land, whichever is earlier.

The bill adds public golf course land to the following provisions of the 490 program.

The law specifies that the classification of land as open space, farm, or forest land under the 490 program is personal to its owner and does not run with the land. Under the law, the classification runs until (1) the land's use is changed to something other than was described in the owner's application, (2) the land is sold, or (3) the land is transferred. In the case of a change in use, the classification terminates on the earlier of the date the use changes or the assessor becomes aware of this change.

By law, the town clerk must notify the assessor of the sale of any land that is in the program when the sale is filed in the land records. Upon receiving the notice, the assessor must notify the new owner of the tax benefits of participating in the program. The law requires the filing of a revised program application with the assessor whenever ownership of land in the program changes.

By law, a conveyance tax is imposed on land in the program when its use is changed or if it is sold or transferred within 10 years of its classification. The tax is 10% if the land is sold in the first year following its classification, and decreases by 1% per year. The law also imposes the tax based on sales or transfers within 10 years if a person other than the owner caused the land to be classified as open space or farm or forest land. By law, the tax penalty is based on the property's fair market value as determined in conjunction with the most recent revaluation.

The conveyance tax does not apply in several circumstances under the law, including (1) transactions involving deeds to or from a limited liability corporation when the grantors or grantees are the same individuals as the principals or members of the corporation and (2) a land owner's death where no consideration was received for the land. By law, the tax also does not apply if the land is subject to a covenant that runs for at least eight years, is enforceable by the municipality, and that precludes the land from being sold, used, or transferred for purposes inconsistent with the program. The town or any of its residents can initiate an action to enforce the covenant. The law specifies that if a taxpayer initiates the action, the action must commence before the ninth year following the date of the deed containing the covenant. By law, anyone aggrieved by the imposition of the tax can appeal to the board of assessment appeals.

The 490 Program is the popular name for PA 490, the 1963 public act that created it. Under the law, 490 program farm, open space, and forest land is assessed at its current use value for property tax purposes.

Farm Land. The law requires assessors in every town to determine the value of farm land under 490 based solely on how it is being used (i. e. , current use value) without regard to its potential resale or fair market value (i. e. , the highest and best use one can make of undeveloped land). A farmer must apply for such an assessment and the land must be farm land, as defined by law, which the assessor must determine.

Open Space Land. By law, a property qualifies for the open space classification if it is located in an area that a municipality's planning commission designated as open space in its 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)).

Forest Land. Under the law, to qualify for classification, eligible forest land must consist of (1) one tract of 25 or more contiguous acres or (2) at least two tracts totaling at least 25 acres, in which no single tract is less than 10 acres. Additionally, land contiguous to a forest land tract owned by the same person can be classified as forest land, if it meets the law's standards. The act requires landowners to hire DEP-certified foresters to determine and report if their land meets standards the state forester sets.

A land owner may apply for forest land classification on any municipal grand list by submitting an application and a copy of the certified forester's report to the assessor.

sHB 6776 provides a property tax break for certain licensed commercial lobster fishermen by adding “maritime heritage land,” which the bill defines, to “490 program” land. On March 21, 2007, the Environment Committee favorably reported a substitute to the Finance, Revenue and Bonding Committee, which favorably reported a substitute on April 17, 2007.

Under the bill, maritime heritage land is the portion of waterfront real property that a licensed commercial lobster fishermen owns and uses for lobstering purposes. To qualify for the designation under the bill, a lobsterman owning the land must apply to the assessor and have derived at least 50% of his or her federal adjusted gross income for the prior tax year from commercial lobster fishing, subject to the town assessor having satisfactory proof. As with farm land under the law, once the assessor determines that a maritime heritage land applicant meets the bill's requirements, he or she must classify the land as such and include it on the grand list. Such land is also subject to the tax conveyance penalty and the other provisions of the 490 program.

Yea

Nay

(03/21/2007)

Yea

Nay

(04/10/2007)