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Present Use Value Assessment Program
Present Use Value (PUV) is designed to allow operating farm and forestry properties to operate without the full burden of property taxes. Instead of the qualifying properties being taxed upon the fair market value, the land in actual production will be taxed upon a reduced rate per acre.
- Agriculture is the production of livestock, crops, and animals.
- Horticulture is the growing of fruits, vegetables, nursery, or floral production.
- Forestry is the commercial growing of trees to harvest timber.
Present-Use Value Assessment Requirements
| Classification | Acreage Required | Ownership | Income | Sound Management |
|---|---|---|---|---|
| Horticulture | 5 acre minimum | Owner must have owned the land for at least 4 years, or a qualifying relative. In some cases, the 4-year wait can be avoided (continued-use). | A minimum of $1,000 average gross income for 3 years prior to the application date. | The highest and best use of the property. |
| Agriculture | 10 acre minimum | Owner must have owned the land for at least 4 years, or a qualifying relative. In some cases, the 4-year wait can be avoided (continued-use). | A minimum of $1,000 average gross income for 3 years prior to the application date. | The highest and best use of the property. |
| Forestry | 20 acre minimum | Owner must have owned the land for at least 4 years, or a qualifying relative. In some cases, the 4-year wait can be avoided (continued-use). | No income needed. | A forestry management plan must be in place by January 1 of the application year. |
All qualifications must be met accordingly for the classification that is being applied for. No exceptions.
A timely application is to be submitted between January 1 and January 31.
Late applications will be accepted for review if the Board of Equalization and Review approves the reason for the late submission.
If accepted into the Present-Use Value Assessment Program, periodic audits will be conducted to ensure requirements are still being met to remain in the program.
Exception to the Ownership Requirement
- If land was assessed at the PUV rate at the time of transfer of ownership, the new owners have sixty days to submit a continued-use application
- Continued-use application agrees to continue the production from previous owner and assumes all liability of deferred taxes if property were to be removed from the program
Deferred Taxes
- If property becomes ineligible or is removed from the PUV program, deferred taxes will become due and payable
- Put simply, it's paying the taxes on the difference of what should have been paid if property was not in the PUV program for three years back,, plus interest
- Calculated by taxing the difference of the fair market value and Present-Use Value for the present year and three prior years plus interest
- Is it possible to change from forestry production to agriculture/horticulture production immediately?
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While it is possible to go from forestry to agriculture/horticulture, it is not possible to immediately transition. To qualify for agriculture/horticulture classification, an income of $1,000 average gross income must be made over a three (3) year time span prior to the application date. However, transitioning from agriculture/horticulture to forestry can be done immediately as long as the forestry requirements are met: a minimum of 20 acres in production of trees, a forestry management plan being in place by January 1 of application year, and the ownership requirement being met.
- What is a forestry management plan and how do I obtain one?
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A forestry management plan is a written plan for the property setting recommendations and instructions from a forester. The plan should include a map of the property which distinguish different areas based on different recommendations and a timeline as to when practices should be carried out or reassessed by a forester. If applying for the forestry classification in the PUV program, the plan should be in place by January 1 of the application year.
To see about getting a forestry management plan, a forester of your choice must be contacted. Anyone who is knowledgeable and is qualified to create a forestry management plan is able to, it is not limited to one person.
- What is the purpose of a Compliance Review Form?
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Our office likes to send out Compliance Review Forms to give the property owners a chance to give us an update so that we are able to keep up to date files on the properties in the PUV program. These forms consist of an acreage breakdown, an income portion for the 3 prior years, as well as a section to give us to the contact information of the farmer leasing the land if it is applicable. These forms are also important so that we are able to make sure people are still meeting the requirements and not abusing the tax deferment.