Farmland assessment is a reduced rate for property that is at least 5 acres actively devoted to agriculture and meets other requirements on an annual basis. The owner must establish at least two years of activity prior to being allowed into the farm assessment program. The filing and administering of the application is done locally by the Tax Assessor.
Farmland meeting the following requirements for eligibility can receive preferential assessment (the assessment is based on productivity and agricultural or horticultural use of the land):
- Applicant must own the land.
- Owner must apply for Farmland Assessment on Form FA-1 with municipal tax assessor annually on or before August 1 of the year immediately preceding the tax year.
- Land must be devoted to agricultural or horticultural uses for at least two years prior to the tax year.
- Land must consist of at least 5 contiguous acres.
- Gross sales of products from the land must total $500 per year for the first 5 acres, plus $5 per acre for each acre over 5, except in the case of woodland or wetland where the income requirement is $0.50 per acre for any acreage over 5.
- Owner must represent that the land will continue in agricultural or horticultural use to the end of the tax year for which application is made.
- Change to a use other than agricultural or horticultural results in additional taxes referred to as rollback taxes (taxes that would have been paid had the land been valued and taxed as other land minus taxes paid under farmland assessment).
Call the Tax Assessment Department at 609-292-7975 for more information.