PA 490 in Stonington: Farmland, Forest & Open Space Taxes

Thinking about buying or selling acreage in Stonington and wondering how PA 490 fits into your plans? You are not alone. Many landowners and buyers hear about lower taxes under PA 490 but are unsure how eligibility, applications, and potential penalties affect a deal. In this guide, you will learn how PA 490 works in Connecticut, what to verify with the Stonington Assessor, how to budget for the change‑of‑use penalty, and the contract terms that help you allocate risk with confidence. Let’s dive in.

PA 490 basics in Stonington

PA 490 lets qualifying farm, forest, or open‑space land be assessed at a use value rather than full market value. The goal is simple. Keep productive and conservation land in its current use by easing the property tax burden. In practice, that usually means a lower assessed value and a smaller tax bill while the land stays eligible.

The classification generally attaches to the land. When you sell, the PA 490 status can continue for the buyer if the qualifying use is maintained and the Stonington Assessor accepts it. The tradeoff is that the town collects less tax while the land stays in the program, which supports agriculture, forestry, and open space in Southeastern Connecticut.

Who qualifies and how to apply

Qualifying categories

Land can qualify under three general categories:

• Agricultural or farm land used primarily for commercial agriculture or horticulture.
• Forest land that is managed for timber or forest stewardship.
• Open‑space land preserved for conservation, recreation, watershed protection, or similar purposes.

You typically need to show evidence of the qualifying use. For farms, that can include income records or sales receipts. For forest land, a forest management plan or documentation from the State Forester is common. For open space, you may need a management plan or conservation documents that support the use.

Application and town practice

Applications are filed with the municipal assessor. Stonington maintains forms and filing deadlines, and the assessor reviews use, acreage, and your documentation. The assessor can inspect the property to confirm eligibility and will assign a use‑value assessment if approved. Filing deadlines and proof standards can vary. Ask the Stonington Assessor about the current schedule, any minimum acreage or income expectations, and whether a new owner must submit anything after closing to keep the classification.

How assessments are calculated

Use‑value assessments are determined under state guidelines. The calculation considers factors like acreage, land capability, and typical agricultural or forest productivity, and it can differ by category. The result is usually lower than a market‑value assessment. To understand the savings on a specific parcel, request the property’s PA 490 file and assessment history from the Stonington Assessor and compare use value to a market‑value estimate.

What PA 490 means for your deal

Lower taxes while you qualify

If your land qualifies and stays in the program, you generally pay less in property taxes. That lower carrying cost can make a holding period more affordable for owners and attractive for buyers who plan to keep the use in place. Always confirm whether the current bill reflects use value or market value before you negotiate price.

The 10‑year change‑of‑use penalty

There is a key risk you should understand. If the use changes within a statutory look‑back period, commonly 10 years, a change‑of‑use or conveyance penalty can be triggered. The exact calculation and collection process are set by state statute and administered by the town. Before you list or submit an offer, ask the Stonington Assessor if a look‑back period remains on the parcel and how a planned change might be treated. If you plan to develop, subdivide, or build non‑qualifying improvements, budget for both the penalty and a reassessment to market value after conversion.

Transfer rules for buyers

PA 490 status can transfer with the land at closing, but it continues only if you maintain the qualifying use and follow any notice or documentation requirements the assessor sets. If you are buying a farm, be ready to provide proof of agricultural activity. If you are buying forest land, line up your forest management plan and talk with DEEP or the State Forester. If you intend to keep open space, keep your management approach consistent with the approved purpose.

Price and marketability

For sellers, PA 490 often lowers carrying costs during the listing period. For buyers who want to farm or steward forest land, the status can be a feature, not a bug. For developers, the potential penalty and the shift back to market value need to be priced into the deal. Clear disclosure and early conversations with the assessor help both sides avoid surprises.

Stonington due‑diligence checklist

Use this checklist to verify status, quantify benefits, and identify any penalty exposure before you sign a contract.

• Title and municipal records

  • Order a title commitment and search for any recorded notices, restrictions, or liens tied to PA 490 or change‑of‑use liability.
  • Request the property’s PA 490 file from the Stonington Assessor, including the original application, date of acceptance, category, acreage covered, and any conditions.

• Assessments and tax history

  • Get the most recent tax bill and several years of assessment history to see the tax savings under use value.
  • Confirm whether the current assessment is use value or market value.

• Proof of qualifying use

  • Agricultural: gather Schedule F or state farm income records, sales receipts, or a farm business plan.
  • Forest: obtain a forest management plan, harvest records, timber cruising reports, or a statement from the State Forester.
  • Open space: compile a management plan or conservation easement documents, if any.

• Consult the assessor

  • Confirm filing deadlines, whether a new owner must reapply, and what documentation is needed to maintain status after closing.
  • Ask how use value is calculated for the specific parcel and whether any change‑of‑use exposure remains.

• Environmental and land‑use constraints

  • Review zoning, wetlands, subdivision rules, and any conservation easements. These can affect both eligibility and development potential.
  • Touch base with regional planning and conservation groups to understand local preservation priorities and how the town may view conversion.

• Quantify penalty exposure

  • If a change is likely, request the assessor’s estimate of the penalty and timing. Build that number into your budget and negotiations.

Contract terms that protect you

Spell out PA 490 issues in your purchase and sale agreement so both sides know who is responsible for what.

• Representations and warranties

  • Seller states the property’s PA 490 status, category, and knowledge of any pending change‑of‑use issues.

• Allocation of penalty risk

  • Decide who pays if a conversion happens. Options include seller paying at or after closing, buyer assuming the risk, or a custom split.

• Escrows and holdbacks

  • Set aside funds to cover potential change‑of‑use liability until the look‑back period ends or until you receive a written estimate or waiver from the assessor.

• Required deliveries

  • Require the seller to deliver the assessor’s certification of status, recent tax bills, the PA 490 approval letter, and any supporting documentation before closing.

• Continuity of eligibility

  • If the buyer will keep PA 490, require the seller to provide all information and reasonable assistance needed to maintain the qualifying use after closing.

Local context in Southeastern Connecticut

The Stonington area blends coastal neighborhoods, small farms, woodlots, and more developed corridors. Market values can be influenced by shoreline proximity and access to services, which can widen the gap between market value and use value under PA 490. That makes the program particularly meaningful in this region. Agricultural and forest parcels contribute to open space, habitat, and local food production, so the town and regional stakeholders pay close attention to how these lands are managed and when they are converted.

Who to contact first

• Stonington Assessor’s Office for forms, filing deadlines, parcel‑specific records, and penalty estimates.
• Town planning and zoning for permitted uses, conservation restrictions, and subdivision rules.
• Connecticut Department of Agriculture for farm classification guidance and documentation requirements.
• Connecticut DEEP or the State Forester for forestland eligibility, management plans, and harvest guidance.
• A local real estate attorney experienced in conservation and land‑use matters for contract language tailored to PA 490.

Putting it all together

PA 490 can lower carrying costs in a meaningful way for qualifying farm, forest, and open‑space land in Stonington. The tradeoff is the potential for a change‑of‑use penalty within a 10‑year look‑back period and a return to market value when the use changes. Your best move is to confirm the property’s PA 490 file, understand the assessor’s current process and timelines, quantify both savings and penalties, and build clear terms into your contract. With the right due diligence and planning, you can protect your position and move forward with confidence.

If you are weighing next steps on a Stonington land purchase or sale, let’s map out a plan that fits your goals. Connect with Unknown Company to schedule a free consultation.

FAQs

Does PA 490 status stay with the land after a sale?

• Generally yes, the classification can continue if the new owner maintains the qualifying use and the assessor accepts it.

Can a buyer keep the lower taxes under PA 490?

• Yes, if the buyer keeps the qualifying use and submits any required documentation to the Stonington Assessor.

What triggers the PA 490 change‑of‑use penalty in Stonington?

• A conversion from the qualifying use within the statutory look‑back period, commonly 10 years, typically triggers the penalty as defined by state statute and town practice.

Who pays the penalty if the use changes after closing?

• It is negotiable, and contracts often assign it to the seller, to the buyer, or fund it through an escrow until liability is clear.

How much tax savings does PA 490 provide?

• It varies by parcel and category, so ask the assessor for the use‑value assessment and compare it to an estimated market‑value tax.

What documents prove eligibility for farm or forest classification?

• Farm income records, sales receipts, or a business plan for agriculture, and a forest management plan or State Forester documentation for forest land are commonly used.

Is there a deadline to apply for PA 490 in Stonington?

• Municipalities set filing deadlines, so confirm the current timeline with the Stonington Assessor and plan your application accordingly.