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    Monday, May 20, 2024

    Montville to mitigate taxes on farmers with new ordinance

    Rob Schacht prepares a CSA bin for a customer Wednesday, Aug. 19, 2020, at his Hunts Brook Farm. Montville recently passed a town ordinance making it so buildings on properties used specifically for farming are tax exempt. A similar measure passed last year in Waterford, where part of Schacht's farm sits. (Sarah Gordon/The Day)
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    Montville — Hunts Brook Farm owner Robert Schacht did farmers in town a favor when, in early March, he approached Mayor Ron McDaniel with an idea: any building used in farming to be exempt from property tax.

    McDaniel went on to author an ordinance to that effect, ushering it through the town’s political process until it was enthusiastically passed by the Town Council on Aug. 10.

    According to McDaniel, legislation sometimes comes from people in town. “It’s not unheard of. We’re here to serve our constituency. If someone has a good idea, a positive thing for the whole community, I’m more than happy to take it on,” he said.

    The ordinance not only covers “any building used actually and exclusively in farming” but also “any building used to provide housing for seasonal employees of such farmer” as “exempt from property tax to the extent of an assessed value of one hundred thousand dollars.”

    It’s not the first time Schacht’s advocacy brought about a desirable result for area farmers. He pitched a near-identical ordinance to Waterford officials several years ago, and since his farm property straddles Montville and Waterford, he wanted to see if the same could be done in Montville.

    “I got this ordinance passed in the town of Waterford a few years back as I was growing my farm and going through expansion,” Schacht said. “This buffers the cost of us increasing our capacities to grow food. Just because we increase our infrastructure doesn’t mean we’ll have good crops. The ordinance helps us decrease the inherent risk that we take as farmers in making investments into expanding our production while still experiencing crop losses and things that Mother Nature throws at us that can affect our overall income.”

    He said he wasn’t expecting town officials to take up the issue during the COVID-19 pandemic but was glad they did. The Waterford ordinance has allowed him to save a couple thousand dollars a year, he said.

    The ordinance stipulates that each year, within 30 days after the assessment date, each individual farmer, group of farmers, partnership or corporation must apply in writing for the tax exemption and include documentation that they derived at least $15,000 in gross sales from the farming operation or incurred at least $15,000 in expenses related to farming. Schacht said the $15,000 requirement makes it so that the ordinance only applies to those who farm for a living.

    For more than a decade, Schacht and his wife, Teresa, have worked to turn their farm on Hunts Brook Road into something that not only provides the community with healthy food but also provides an income. They have a farm stand, participate in farm-to-table restaurant operations, have a booth at local farmers markets and sell produce to Fiddleheads Food Co-op in New London. The farm also participates in Community Supported Agriculture, or CSA, food shares.

    During the pandemic, McDaniel said, the work of and food access provided by local farms was crystallized.

    “As the COVID crisis grew and we needed a source of local produce, it became apparent that this would be a very good thing to do for the farmers in the community, of which there are dwindling numbers,” he said. “Anything we can do to keep local farming in place, let’s go for it.”

    The town estimates that 36 Connecticut municipalities have adopted similar ordinances. Montville has 42 farms with outbuildings, or structures other than the farmers’ residences — those residences are not included in the exemption. The total assessed value of these outbuildings equals $499,370, although the majority of such buildings will not qualify for the exemption.

    The estimated tax loss for all existing outbuildings would be $16,234.52, according to the town assessor. The town can’t anticipate tax loss for building in the future. Schacht said he foresees the Montville portion of his farm as ideal for greenhouse structures and originally checked on the feasibility of the exemption in anticipation of building there. 

    Schacht said the ordinance means more than simply helping farmers with taxes.

    “It’s a societal statement, as well, the fact that towns are willing to pass an ordinance like this. It’s an expression on their behalf saying that ‘small farms are important to us,’ and that creates a discussion about how to maybe enhance small farming in our communities,” he said.

    The first sentence in the ordinance echoes Schacht’s thinking: “The Town of Montville finds that the preservation of farming and farmland is vitally important to retaining Montville's character and quality of life, as well as promoting economic and environmental sustainability.”

    s.spinella@theday.com

    To the left of the greenhouse at Hunts Brook Farm sits the Waterford-Montville town border, as seen Wednesday, Aug. 19, 2020. Montville recently passed a town ordinance making it so buildings on properties used specifically for farming are tax exempt. A similar measure passed last year in Waterford, where part of the farm owned by Rob Schacht sits. (Sarah Gordon/The Day)
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    Rob Schacht carries a CSA bin for a customer Wednesday, Aug. 19, 2020, at his Hunts Brook Farm. Montville recently passed a town ordinance making it so buildings on properties used specifically for farming are tax exempt. A similar measure passed last year in Waterford, where part of Schacht's farm sits. (Sarah Gordon/The Day)
    Buy Photo Reprints

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