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Present Use Valuation Program Present Use (or Farm Value) is the value of a tract based on its ability to produce agriculture, forestry, or horticulture products. The yearly taxes are based on the use of the property verses it highest and best use. Below are the three designated classes of the program. Agricultural Agricultural land means land that is a part of a farm unit actively engaged in the commercial production or growing of crops, plants, or animals under a sound management program. Agricultural land includes woodland and wasteland and may consist of more than one tract of agricultural land, but at least one of the tracts must meet the requirements. · At least one tract must consist of at least 10 acres that are in actual production and are not included in a farm unit. (Agricultural tracts with more than 20 acres of woodland must have a sound management plan covering the woodland portion). · Must have produced an average gross income of at least one thousand dollars ($1,000) for the three years preceding January 1 of the year in which this benefit is claimed. Gross income includes income from the sale of the agricultural products produced from the land and any payments received under a governmental soil conservation or land retirement program. · If individually owned, the property must be the owner's residence or have been owned by the current owner or a relative of the current owner for four years preceding January 1 of the year in which this benefit is claimed. Forestland Forestland means land that is part of a forest unit that is actively engaged in the commercial growing of trees under a sound management program. Forestland includes wasteland that is part of the forest unit, but the wasteland included in the unit shall be appraised under the use value schedules as wasteland. May consist of more than one tract of forestland, but at least one of the tracts must meet the requirements and each tract must be under a sound management program. · At least one tract must consist of at least 20 acres that are in actual production and are not included in a farm unit. · If individually owned, the property must be the owner's residence or have been owned by the current owner or a relative of the current owner for four years preceding January 1 of the year in which the benefit is claimed. Horticultural Horticultural land means land that is a part of a horticultural unit that is actively engaged in the commercial production or growing of fruits or vegetables or nursery or floral products under a sound management program. Horticultural land includes woodland and wasteland that is a part of the horticultural unit, but the land included in the unit shall be appraised under the use value schedules as woodland or wasteland. May consist of more than one tract of horticultural land, but at least one of the tracts must meet the requirements. · At least one tract must consist of at least 5 acres that are in actual production. · Must have produced an average gross income of at least one thousand dollars ($1,000) for the three years preceding January 1 of the year in which this benefit is claimed. Gross income includes income from the sale of the horticultural products produced from the land and any payments received under a governmental soil conservation or land retirement program. · If individually owned, the property must be the owner's residence or have been owned by the current owner or a relative of the current owner for four years preceding January 1 of the year in which the benefit is claimed. If property loses it's eligibility for any reason, deferred taxes become due for the current year plus three previous years, plus interest for all prior years. If only a part of the qualifying tract loses its eligibility, a determination shall be made of the amount of deferred taxes applicable to that part, and that amount shall become payable with interest. All applications must be filed during the regular listing period (month of January) or within 30 days of the notification of change in value or within 60 days of the date of the property’s transfer. If you have any questions about the program you may contact the Real Estate Division at 252-399-2902. Below are some links that may give you more information concerning the program. |