Estimating Agricultural Use Value for Property Tax Purposes: How do State Programs Assess Use Value?

34 Pages Posted: 21 Jan 2011  

John E. Anderson

University of Nebraska at Lincoln - Department of Economics; Lincoln Institute of Land Policy

Date Written: January 14, 2011

Abstract

All fifty states in the United States provide property tax preferences for agricultural land via some form of use-value assessment. By this assessment approach agricultural land is valued in its current agricultural use, not at its full market value. The intent of this policy is to provide a preferential property tax rate for agricultural land. This method of valuing agricultural land has its challenges, however. Isolating agricultural use value as distinct from other sources of land value is more complex and difficult that it would first appear. In this paper I provide a review of the methods used by various states in their application of use-value statutes for agricultural land. My intent is to review the methods used in various state programs, to provide evaluative comments on those methods, and to make suggestions for improvements in the methods used.

Keywords: agricultural land, use value, assessment, property taxation

JEL Classification: H71, Q15, R51

Suggested Citation

Anderson, John E., Estimating Agricultural Use Value for Property Tax Purposes: How do State Programs Assess Use Value? (January 14, 2011). Available at SSRN: https://ssrn.com/abstract=1743754 or http://dx.doi.org/10.2139/ssrn.1743754

John E. Anderson (Contact Author)

University of Nebraska at Lincoln - Department of Economics ( email )

Lincoln, NE 68588-0489
United States
402-472-1190 (Phone)
402-472-9700 (Fax)

Lincoln Institute of Land Policy ( email )

113 Brattle Street
Cambridge, MA 02138-3400
United States

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