Thursday, February 6, 2014
Both the Boston Globe and the Wall Street Journal report that a dispute in Massachusetts over a $172.87 property tax bill could undermine tax exemption for millions of acres held by land trusts nationwide. At immediate stake is the tax status of 120 acres of woodland owned by the New England Forestry Foundation. The bigger issue is whether merely preserving land for public use is sufficiently in the public interest to justify exempting them from property tax under applicable state and local laws, or whether instead some level of actively encouraging public use or otherwise providing public benefit is also required. Both property tax assessors for cash-strapped jurisdictions and nonprofit land trusts are closingly following the case. The Massachusetts Supreme Judicial Court heard arguments last month, and similar cases are working their way through the courts in a number of other states.