CARTERET COUNTY
ASSESSOR'S OFFICE
N O R T H C A R O L I N A
NORTH CAROLINA ELIGIBILITY
REQUIREMENTS FOR PRESENT USE
VALUE
Table of Contents
WHAT IS PRESENT USE VALUE?
It is the value of the land in its current use
as agricultural land, horticultural land, or forestland. The
land meeting the eligibility requirements is taxed on the
present-use value instead of market value of the land.
To be eligible for present-use values, a farm
unit consisting of one or more tracts must meet the following
requirements (North Carolina G.S. 105-277).
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APPLICATION REQUIREMENTS
Applications must be filed during the January
listing period or within thirty days of a change in the assessed
value of the land.
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OWNERSHIP REQUIRMENTS
The farm must be owner's place of residence,
or must have been owned by the owner or a close relative for
the four (4) years preceding January 1, or the owner had other
land in the use value program and this is a tract which was
acquired during the past year and the tract was in use value
program or was eligible to be in the value program under the
prior owner. The tract must have met the size, income, and
other requirements under the prior owner.
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SIZE REQUIREMENTS
A farm unit of agricultural land must have at
least one ten (10) acre tract actively engaged in the commercial
production or growing of crops or animals under a sound management
program, and for other tracts in the unit to be eligible,
each tract must include agricultural land which is actively
engaged in the commercial production under sound management.
Note: Up to twenty (20) acres of woodland and wasteland that
is part of a farm unit is automatically eligible if the agriculture
land on that tract is eligible. Forestland with more than
twenty (20) acres must meet the requirements for forestland.
A farm unit of forestland must have at least one twenty (20)
acre tract actively engaged in the commercial growing of trees
under a sound management program, and for other tracts in
the unit to be eligible, each tract must include forest land
which is actively engaged in the commercial production under
sound management. Note: Wasteland that is a part of a forestland
tract is automatically eligible if the forestland on that
tract is eligible. Agriculture and horticulture land must
meet the requirements for each and ARE NOT "carried"
by the woodland. A farm unit of horticultural land must have
at least one five (5) acre tract actively engaged in the commercial
production or growing of fruits, vegetables, nursery, or floral
products under a sound management program, and for other tracts
in the unit to be eligible, each tract must include horticultural
land in actual production. Size requirements must take into
consideration land in the present-use program located in other
counties.
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INCOME REQUIREMENTS
Agricultural land and horticultural land must
have reproduced an average GROSS income for the past three
years or $1,000 per year. Since the minimum acreage is ten
(10) acres, the implication is that the income produced should
be at least $1,000 per ten (10) acres of open land (The North
Carolina Tax Commission has ruled on appeals that the $1,000
minimum income does not apply for larger tracts). Generally,
income from products produced by the land is included, and
service fees, rent, etc. are not. Forestland does not have
income requirements. Crops used to produce income indirectly,
such as hay for cow feed, corn for hog feed, should be included
in the gross income based on what the crop would have brought
at the market. (However, do not include both income on livestock
sales and hay fed to that livestock, ect.)
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SOUND MANAGEMENT REQUIREMENTS
Sound management means a program of production
designed to obtain the greatest net return from the land consistent
with its conservation and long-term improvements. Sound management
is a requirement that is much more difficult to determine
than the others. Generally, there must be a reasonable attempt
to produce income or profit on the investment. Evidence must
be given to indicate the use of acceptance management procedures
which are practiced by commercial producers. Forestland application
must include a plan of management proposed by a North Carolina
State Forester or a Certified Forestry Consultant of your
choice which must be followed.
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FEDERAL RESERVE CONSERVATION PROGRAM
Land in the present-use program which is then
enrolled in the Federal Conservation Reserve Program (CRP)
shall be listed as in actual production (105-277.3d) but must
meet all other requirements. The income from CRP is counted
towards income requirements.
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REVIEW OF ELIGIBILITY
G.S. 105-296 (J) requires a review of each property
every four years or every revaluation cycle to insure eligibility
is maintained. A new application may need to be completed
in the event of deed activity or acreage change.
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PAYMENT OF DEFERRED TAXES
If at any time, a tract or part of a tract of
land becomes ineligible for present use value assessment under
the requirements of General Statutes 105-277, the deferred
taxes including interest on that tract become due for the
current year and the past three (3) years. When changes in
eligibility are not reported by the owner, a ten percent (10%)
penalty for each year the ineligibility is unreported is required
by General Statutes 105-277.5.
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CHANGES
Eligibility requirements are subject to change
in accordance with North Carolina General Statutes.
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