Certain agricultural, timber and open space lands are valued at their current use rather than market value. For taxes due in 1998, this difference in valuation resulted in an estimated $53.3 million in tax losses and shifts to other taxpayers.
To receive reduced assessment, farm and agricultural land and timber land must meet acreage and/or gross income requirements. There are no income or acreage requirements for open space lands. Local five-person advisory boards assist assessors in determining current use value. They take into consideration lease contracts or productive capacity. Each year assessors estimate a true and fair value separate from the current use value. In the event land is voluntarily removed from current use status, the property owner is liable for a maximum of seven years of compensating taxes based on the difference between current use and fair market value estimates, plus interest and penalties.
To qualify for current use, farm and agricultural land must be:
-- 20 or more acres in agricultural use,To be eligible for current use classification, timber land must be five or more acres (land only) devoted primarily to the growth and harvest of forest crops. Open space land must be areas set aside to protect, preserve, enhance, promote, and retain such lands.-- five or more acres, but less than 20, with annual income from agricultural uses of $200 or more per acre for three out of five years, or
-- less than five acres with annual income from agricultural use of $1,500 or more for three out of five years.
CURRENT USE VALUE REDUCTIONS
1982-1998 Collection Years
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Highest & Best Current Use Value Percent
Year Applicants Use Value Value Reduction Value
Due or Units Acres ($ Million) ($ Million) ($ Million) Reduction
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1998 52,867 11,445,541 $8,716.5 $2,926.5 $5,790.1 66.4%
1997 50,996 11,574,810 8,366.2 2,729.4 5,636.8 67.4
1996 49,383 11,485,934 8,007.7 2,633.9 5,373.8 67.1
1995 48,411 11,203,257 7,829.3 2,699.0 5,130.4 65.6
1994 47,521 11,458,638 7,372.3 2,392.9 4,979.4 67.5
1993 47,001 11,517,719 7,017.0 2,333.2 4,683.8 66.7
1992 46,420 11,490,320 6,641.1 2,266.1 4,375.0 65.9
1991 45,998 11,526,944 6,401.0 2,218.1 4,182.9 65.3
1990 45,475 11,507,709 6,269.9 2,225.9 4,044.0 64.5
1989 44,534 11,458,790 6,508.5 2,217.0 4,291.5 65.9
1988 42,406 11,086,308 6,677.2 2,100.4 4,576.8 68.5
1987 40,062 10,745,412 7,415.7 2,220.1 5,195.6 70.1
1986 38,293 10,451,932 7,405.2 2,144.2 5,261.0 71.0
1985 38,641 10,200,390 7,053.6 2,082.6 4,971.0 70.5
1984 39,579 9,611,711 6,352.1 1,933.7 4,418.4 69.6
1983 37,031 9,294,327 5,710.6 1,800.4 3,910.2 68.4
1982 34,608 9,104,309 4,999.0 1,695.2 3,303.8 66.1