Fix to 10 Mill Property Tax Program for 14,000 Acres of Forest Land Needed this Year

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– By Eric Hammerling, Executive Director of the Connecticut Forest & Park Association

Enacted in 1913, the "10 Mill" program is the name of the first forest conservation law enacted in Connecticut.

The 10 Mill program provided landowners with more than 25 acres of forest with a low property tax rate of 10 mills based on the original value of the land. Landowners had to: 1) make a 100-year commitment to preserving their land as forest; 2) be subject to severe penalties if they changed the use of their properties out of forestry before the conclusion of their 100 years; and 3) be subject to taxes to their town if they ever conducted a commercial harvest on the property.  It was an amazing program that was decades ahead of its time.

However, a significant but oft-overlooked catch for 10 Mill landowners has become a problem. Upon participating in the program for 50 years, the 10 Mill landowner's property and standing timber is re-assessed at current "developable" values. In most cases the value of the land has increased dramatically over time. 

By re-assessing the land and timber at their current, developable values, 10 Mill landowners’ property tax bills will likely increase by a factor of 20 or more. A conservative example of the property tax increase provided by the DEP Forestry division projected property taxes increases from $1/acre to $24.50/acre at the 50 year anniversary. Meanwhile, owners of comparable forest land who participate in the Public Act 490 program (which has become the preferred choice for forest, agricultural, and open space landowners since its inception in 1963), are paying only $2.73/acre.

Not only is this unfair to the landowners of 14,000 acres of forest who made both an earlier and long-term commitment to protecting their forests, it could be an incentive to sell. House Bill 6263, being heard by the Environment Committee on Monday March 7, would address this situation by:

1. Capping the property taxes of 10 Mill landowners at the P.A. 490 rate at their 50-year anniversary in the p program;
2. Providing 10 Mill landowners who are willing to place a conservation easement on their properties with the flexibility to keep their lands in 10 Mill or transition into P.A. 490 without a financial penalty; and
3. Maintaining the penalties associated with changing use out of forestry to both protect the forest values of the 10 Mill lands and ensure that towns would benefit financially if the landowners decided to develop.

Your testimony in support of H.B. 6263 would be most appreciated. If you cannot attend the hearing Monday but would like to submit testimony via email, it can be emailed to Environment Committee clerk Jason.Bowsza@cga.ct.gov .

For more information contact Eric Hammerling, Executive Director of the Connecticut Forest & Park Association, at 860.346.2372 or EHammerling@ctwoodlands.org.