This bill changes how the state pays towns for tax-exempt, state-owned land. Instead of the old formula, the Treasurer must pay each town every year by November 20 based on the value of eligible state land reported by the Commissioner. The payment is calculated by multiplying that land value by an average statewide property tax rate from the past three years. That average rate is based on statewide figures for the total amount of property taxes collected and the total taxable property value.

The bill also guarantees each town will get at least what it received the previous year, unless some land is removed from the program. It removes the term "reimbursement percentage" from state law to reflect the new approach.

The proposed bill modifies the approach for calculating payments in lieu of taxes to Massachusetts municipalities that host state-owned land. It eliminates obsolete "reimbursement percentages" from Sections 13, 15, and 16 of Chapter 58, and updates Section 17 to define a clear formula for annual reimbursements. This formula relies on a specified valuation method, ensuring payments do not drop below the previous year's total unless there is a documented decrease in the land’s value.

Additionally, the bill mandates that the Department of Revenue and the Executive Office of Energy and Environmental Affairs collaborate on suggesting legislative changes to refine these sections further. These enhancements are intended to factor in the benefits of carbon storage, ecosystem services, and other environmental advantages provided by natural and working lands. The aim is to improve reimbursements, especially in relation to areas with permanently protected open space, forest cover, or significant ecological services. The agencies are also tasked with considering equitable reimbursement practices across regions and higher rates for municipalities with substantial state-owned land.

To ensure comprehensive stakeholder engagement, the bill requires that draft recommendations be presented in a public hearing within six months, followed by a public commentary period. Final recommendations are to be submitted to relevant legislative committees and made accessible online.

This bill proposes amendments to Chapter 58 of the General Laws concerning the valuation of state-owned land for tax reimbursement to municipalities. It eliminates the use of "reimbursement percentages" and updates the methodology the state treasurer employs to calculate annual reimbursements based on the average tax rates from the three preceding years. This approach guarantees that municipalities receive reimbursement no less than the previous year’s amount, barring deductions for land removed from the valuation list. Moreover, within one year of the bill's enactment, the Department of Revenue and the Executive Office of Energy and Environmental Affairs are tasked with suggesting legislative amendments to enhance the reimbursement formula. These suggestions should incorporate the valuation of ecological services like carbon storage and ensure the formula aligns with environmental objectives. Additional reimbursements could be advised based on factors such as open space and forest cover. The agencies are also instructed to hold a public hearing to gather input on their draft recommendations and to submit finalized recommendations to relevant legislative committees, ensuring these are accessible to the public.