Tax deferments may be referred to as use value assessment, present
use value or just simply a "tax break". Properly
referred to as use value the term means the value of land in its current use as
agricultural land, horticultural land, forestland or historical properties.There are four basic programs involved:
Agricultural
| Forestland | Horticultural
Historical
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 may include some woodland and wasteland but
it must be appraised as woodland and wasteland. The requirements for an agricultural
deferment are as follows:
 | May consist of more than one tract of agricultural land, but at least one
of the tracts must meet the qualification requirements and each tract must be under a sound
management program.
|
| One tract must consist of at least 10 acres that are in actual production
of commercial products.
|
| Must have produced an average gross income of at least one thousand
dollars ($1,000) for the three year's preceding January 1 of the year in which this
benefit is claimed. Gross Income includes income from the sale of agricultural products
produced on the land and any payments received under a government 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. |
All applications must be filed during the regular listing period
(January 1 - January 31) or within 30 days of the notification of change in value.
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Forestland
Forestland means land that is a 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 a part of the forest unit, but the wasteland
included in the unit shall be appraised under the use value schedules as wasteland. The
requirements for a forestland deferment are as follows:
| May consist of more than one tract of forestland, but at least one of the
tracts must meet the qualification requirements and each tract must be under a sound
management program.
|
| 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. |
All applications must be filed during the regular listing period
(January 1 - January 31) or within 30 days of the notification of change in value.
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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 may include some 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. The requirements for a horticultural deferment
are as follows:
| May consist of more than one tract of horticultural land, but at least
one of the tracts must meet the qualification requirements and each tract must be under a sound
management program.
|
| 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 relative of the current owner for four years preceding
January 1 of the year in which the benefit is claimed. |
The following applies to agricultural, forestland and horticultural
deferments:
If property loses its eligibility for any reason, deferred taxes become
due for the current year plus three 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
(January 1 - January 31) or within 30 days of the notification of change in value.
INSTRUCTIONS FOR PRESENT
USE VALUE ASSESSMENT APPLICATION
PRESENT USE VALUE ASSESSMENT
APPLICATION
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Historical
Historical property is real property designated as a historic structure
or site by a local ordinance adopted by the Historical Property Commission and approved by
the Board of Commissioners. Property that is classified as historical shall be taxed on
the basis of fifty percent (50%) of the true appraised value. After property has been
designated as historical property, the owner is required to contact the local Tax Listing
Office for a historical deferment application.
The deferred taxes will not become due unless or until the property
loses its eligibility for the benefit of this classification. This could occur because of
a change in an ordinance designation or a change in the property which causes its
historical significance to be lost or substantially impaired. If the property should no
longer qualify the tax for the current year shall be computed at the original assessed
value without the 50% deferment and taxes for the three preceding years that have been
deferred shall become due and payable with any interest or penalties that would normally
accrue. If only a part of the historical property loses its eligibility for the
classification, a determination shall be made of the amount of deferred taxes applicable
to that part and the taxes shall be due and payable with interest or penalties that would
normally accrue.
If you need additional information, please contact the Tax Listing
Office. These laws are applicable to all counties in the state of North Carolina.
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