Bill > H3507

This bill proposes to amend existing Massachusetts law regarding estate taxes for farms by allowing the estate of a decedent to elect a specific valuation method for real property used for farming purposes. Instead of the standard valuation, the estate can choose to value the farm property either according to a federal tax code provision (section 2032A of the Code, as it existed in 1985) or, if the property is considered "closely held agricultural land," it can be valued based on the assessment set by the farmland valuation advisory commission for the most recent growing season. To qualify for this special valuation, the land must meet certain definitions outlined in specific chapters of Massachusetts General Laws related to agricultural land classification, even if it hasn't been formally classified by local assessors. If the land later ceases to meet these definitions, it will be subject to "rollback taxes," which are additional taxes for the current year and the nine preceding years during which the special valuation was applied. If a federal estate tax return is required, any election made under this bill must be consistent with the federal election.