Present Use or Farm Program and Wildlife Conservation

The Present Use or Farm program is a tax deferred program for qualifying property. The property must be actively engaged in agricultural, horticulture or forestry management. There are four eligibility requirements for each of the three programs. All four must be considered to participate in the program:

  • Ownership
  • Acreage
  • Income
  • Sound Management

NC General statues also has a wildlife conservation program. It's not part of the Present Use Value (Farm Use) Program. It does, however, require the land in the program be assessed as if it were agriculture land. The NC general statute(PDF, 96KB) defines the types of habitats and species that will qualify land for the program. The land must consist of at least 20 acres and no more than 100 acres in any one County. The land must be managed under a written Wildlife Habitat Conservation Agreement. This agreement is with the NC Wildlife Resources Commission. Basic eligibility requirements are the same as the farm program.

Present Use Program

Application Deadline:  January 31

The NC general statutes(PDF, 96KB) govern the present use program. It can provide more detailed information.

Present Use Documents:

  1. Present Use Exemption Application. This application form (AV-5) is for initial applications and for continued use.
  2. Request Voluntary Payment of Deferred Taxes. This form (AV-3) is used when electing to pay the deferred taxes. This is without affecting the eligibility of the property.
  3. Request Voluntary Disqualification. This form (AV-6) is used when electing to pay the deferred taxes. This removes the property from the Present Use program. Once filed this form is non-rescindable.
  4. Request for Estimation of Deferred Taxes. This form (AV-7) is used when requesting an estimation of deferred taxes only. This form does not remove the property or affect its eligibility.

Wildlife Conservation Program

Application Deadline:  January 31 

Wildlife Conservation Document:

  1. Wildlife Conservation Application. Fill out this application form (AV-56). Be sure to have your digital copy of the signed Wildlife Habitat Conservation Agreement ready.

Agricultural Program

Ownership examples can be:

  • an individual
  • a business entity with specific requirements
  • a trust that meets specific requirements
  • a testamentary trust meeting specific requirements and certain tenants in common

Agricultural land is land that is a part of a farm unit. It must be actively engaged under a sound management program in the commercial production or growing of:

  • crops
  • plants
  • animals

The qualifying tract must meet the income requirement for agricultural land. It must consist of at least 10 acres that are in actual production.

Agricultural land must produce a minimum gross income of one thousand dollars. This must be maintained yearly. It must have been maintained for three years preceding January 1 of the year for which the benefit gets claimed.

Sound management program requirements is a program of production. It is designed to obtain the greatest net return from the land. It must also be consistent with its conservation and long-term improvement.

This is a tax deferred program. The land gets taxed on the basis of the value of the land for its present use. A lien is imposed on the real property of the taxpayer for:

  • The difference between the taxes due on the present-use basis and
  • the taxes that would have been payable in the absence of this classification. Interest, penalties or costs that accrue are added.

The difference in taxes gets carried forward. This is in the records of the taxing unit or units as deferred taxes. Properties lose their eligibility for deferral as a result of a disqualifying event. If a disqualifying event occurs:

  • deferred taxes for the preceding three fiscal years are due and payable 

Disqualifying events occurs when the land fails to meet any condition of classification. They can also occur when an application is not approved.

When eligibility is lost, payment for deferred taxes on property are immediately due and payable. This occurs when property loses its eligibility for the deferral program. This loss of eligibility is usually the result of a disqualifying event.

Horticulture Program

Ownership examples can be:

  • an individual
  • a business entity with specific requirements
  • a trust that meets specific requirements
  • a testamentary trust meeting specific requirements and certain tenants in common

Horticultural land is land that is a part of a horticultural unit. It must be actively engaged under a sound management program in the commercial production or growing of:

  • fruits or vegetables
  • nursery or floral products

The qualifying tract must meet the income requirement for horticultural land. It must consist of at least 5 acres that are in actual production. Land in actual production includes land under improvement.

Horticultural land must produce a minimum gross income of one thousand dollars. This must be maintained yearly. It must have been maintained for three years preceding January 1 of the year for which the benefit gets claimed. Land growing evergreens for Christmas trees must meet minimum gross income requirements. These requirements are established by the Department of Revenue. 

Sound management program requirements is a program of production. It is designed to obtain the greatest net return from the land. It must also be consistent with its conservation and long-term improvement.

This is a tax deferred program. The land gets taxed on the basis of the value of the land for its present use. A lien is imposed on the real property of the taxpayer for:

  • The difference between the taxes due on the present-use basis and
  • the taxes that would have been payable in the absence of this classification. Interest, penalties or costs that accrue are added.

The difference in taxes gets carried forward. This is in the records of the taxing unit or units as deferred taxes. Properties lose their eligibility for deferral as a result of a disqualifying event. If a disqualifying event occurs:

  • deferred taxes for the preceding three fiscal years are due and payable 

Disqualifying events occurs when the land fails to meet any condition of classification. They can also occur when an application is not approved.

When eligibility is lost, payment for deferred taxes on property are immediately due and payable. This occurs when property loses its eligibility for the deferral program. This loss of eligibility is usually the result of a disqualifying event.

Forestry Program

Ownership examples can be:

  • an individual
  • a business entity with specific requirements
  • a trust that meets specific requirements
  • a testamentary trust meeting specific requirements and certain tenants in common

Forestland land is land that is a part of a forest unit. It must be actively engaged under a sound management program in the commercial production or growing of:

  • trees

The qualifying tract must meet the meet the requirements in G.S. 105-277.3(a)(3). It must consist of at least 20 acres that are in actual production. This land cannot be included in a farmland unit.

This program is NOT designed to be a preservation of forestland program. It is intended for growing and cutting of trees for commercial use.

A forestland sound management program complies with a written sound forest management plan. The plan is for the production and sale of forest products. 

This is a tax deferred program. The land gets taxed on the basis of the value of the land for its present use. A lien is imposed on the real property of the taxpayer for:

  • The difference between the taxes due on the present-use basis and
  • the taxes that would have been payable in the absence of this classification. Interest, penalties or costs that accrue are added.

The difference in taxes gets carried forward. This is in the records of the taxing unit or units as deferred taxes. Properties lose their eligibility for deferral as a result of a disqualifying event. If a disqualifying event occurs:

  • deferred taxes for the preceding three fiscal years are due and payable 

Disqualifying events occurs when the land fails to meet any condition of classification. They can also occur when an application is not approved.

When eligibility is lost, payment for deferred taxes on property are immediately due and payable. This occurs when property loses its eligibility for the deferral program. This loss of eligibility is usually the result of a disqualifying event.

Wildlife Conservation Program

Land qualifies as wildlife conservation land if it meets the following requirements:

  • size
  • ownership
  • use requirements
  1. Size: The land must consist of at least 20 contiguous acres but no more than 100 acres in any one County.
  2. Ownership: The Land must have been owned by the same owner for the previous five years. It mus also be owned by an individual, a family business entity, or a family trust. 
  3. Use Requirements: It must have been:
    • classified under G.S. 105-­277.3. This must be the case when the wildlife habitat conservation agreement was signed or
    • demonstrated that the land was used for wildlife habitat conservation agreement purposes. Both the Wildlife  Resources Commission and the Assessor must be convinced. This must be the case for three years preceding the January 1 of the year for which the benefit is claimed.

      The land must be managed under a written Wildlife Habitat Conservation Agreement. This agreement is with the NC Wildlife Resources Commission. It must be in effect as of January 1 of the year for which the benefit is claimed. This requires the owner to do one or more of the following:
    • Protect an animal species that lives on the land. As of January 1 of the year for which the benefit is claimed, the animal must be protected. It must be protected by being on a NC protected animal list published by the Commission under G.S. 113­-333.
    • Conserve any of the following priority animal wildlife habitats:
      • longleaf pine forest
      • early successional habitat
      • small wetland  community
      • stream and riparian zone
      • rock outcrop
      • bat cave

This is a tax deferred program. The land gets taxed on the basis of the value of the land for its present use. A lien is imposed on the real property of the taxpayer for:

  • The difference between the taxes due on the present-use basis and
  • the taxes that would have been payable in the absence of this classification. Interest, penalties or costs that accrue are added.

The difference in taxes gets carried forward. This is in the records of the taxing unit or units as deferred taxes. Properties lose their eligibility for deferral as a result of a disqualifying event. If a disqualifying event occurs:

  • deferred taxes for the preceding three fiscal years are due and payable

Disqualifying events occurs when the land fails to meet any condition of classification. They can also occur when an application is not approved.

When eligibility is lost, payment for deferred taxes on property are immediately due and payable. This occurs when property loses its eligibility for the deferral program. This loss of eligibility is usually the result of a disqualifying event.

NC General Statutes(PDF, 96KB) govern the program and provide additional information.

 

Contact Information

Leslie Reimer, Exempt Property Analyst
704-920-2428
lareimer@cabarruscounty.us

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