Present Use Programs for Property Tax Deferment
Property that qualifies for Present Use Value classification is assessed at its Present Use Value rather than its market value. The tax office maintains a market value for the land and the difference between the market value and the Present Use Value is known as deferred taxes. Note: When the land becomes disqualified from the Present Use Value program, the deferred taxes for the current year and the three previous years with interest will become due and payable.
Present Use Value Applications for the following programs must be filed during the regular listing period (January 1 through January 31) or within 30 days of a notice of value change. If a property becomes ineligible for use-value appraisal because of a change in use or in acreage, a new application must be filed. If property ownership is transferred, a new application must be submitted within 60 days of the date of transfer in order to stay in the use program.
Agricultural Use Program
To be considered agricultural land, there must be at least 10 acres of land that is actively engaged in the commercial production or growing of crops, plants, or animals under a sound management program. For the three years preceding January 1 of the year for which the benefit of this section is claimed, the agricultural land must have produced an average gross income of at least one thousand dollars.
To be considered horticultural land, there must be at least 5 acres of land that is actively engaged in the commercial production or growing of fruits or vegetables or nursery or floral products under a sound management program. For the three years preceding January 1 of the year for which the benefit of this section is claimed, the horticultural land must have produced an average gross income of at least one thousand dollars.
To be considered for forestry use, there must be at least 20 acres of forestland that are in production. It must comply with a written sound forest management plan for the production and sale of forest products.
Another good resource for forestry in North Carolina is located at: NC Forestry
Upon any change in use which would disqualify land receiving benefit from use classification, the Tax Assessor's Office must be notified no later than the close of the following listing period. Failure to notify the assessor may result in a 10% penalty on the total amount of deferred taxes and interest for each listing period in which the change is not reported.
You may download the Present Use Value - Wildlife Brochure.
For any questions or comments email Melissa.Hunter@gastongov.com