Board discusses raising conveyance tax for open-space debt relief and stricter PA 490 enforcement

Board members discussed a proposal to increase the town’s conveyance tax so that additional receipts would be designated for open-space acquisition or to retire existing open-space debt. A board member said doubling the town portion of the conveyance fee could generate roughly $200,000 a year and noted state law requires extra conveyance revenue to be designated for open-space acquisition.

The member asked staff to consult with the town clerk about how conveyance receipts are recorded and whether the town’s financial software can segregate the portion assigned to open-space. “It would be helpful when we get to discuss it if Val could sit down with the town clerk who collects it,” the member said.

Why it matters: the town has outstanding open-space bonding and limited commercial tax base; members discussed applying incremental conveyance revenue first to debt reduction and then to reserves for future open-space needs.

The board also focused on PA 490 (state statute allowing open-space, farm, or forest land tax relief). Members reported the assessor (Lambert) is recommending a stricter interpretation of acreage thresholds — requiring standard minimum acreage (commonly 10 acres) rather than allowing very small parcels or fractional acreage to receive full relief. A member said local practice has sometimes allowed a single acre of a three-acre lot to receive benefits and urged the assessor’s recommended enforcement going forward.

Members requested that Lambert provide parcel counts, acreage distributions and estimated revenue impacts if enrollments were tightened. They also asked the town clerk (Kathy) to advise on accounting and whether the software vendor supports segregated accounting for conveyance tax earmarks.

Next steps: the board will ask staff to draft the mechanics for a conveyance-tax change and request a data packet from the assessor on PA 490 enrollments and revenue effects before deciding whether to bring a proposal to a full meeting.