Working farm designation for residential property taxes: the complete guide

Last updated 2026-07-11

What is a working farm designation and how does it lower property taxes?

A working farm designation taxes your land on what it earns as a farm, not on what a developer would pay to build houses on it. That single change in the basis of assessment is where the savings come from.

Most residential land is assessed at its highest and best use. Usually that means its value to a builder. If you have fields, orchards, pasture, or timber, that development value can dwarf what the land actually earns growing anything.

Agricultural use designation, sometimes called current use assessment, greenbelt classification, or farm use valuation, changes the basis of assessment entirely. Instead of taxing your land as if a subdivision might go up tomorrow, the assessor values it on what it produces as a farm. That income-based number is almost always far lower. In Tennessee, farmland under agricultural use can carry an assessed value below 5% of its development value in some counties ^[1].

Every state runs some version of this program. The names differ. Texas calls it an agricultural appraisal (technically an appraisal method under Tax Code Section 23.41). California uses the Williamson Act, which ties your land into a rolling contract with the county. Virginia, North Carolina, and most southeastern states run use-value assessment programs. Vermont's Current Use Program covers farms and forests. The mechanism varies. The core idea is the same everywhere: tax farmland like farmland, not like a housing lot.

This is not a true exemption in the legal sense. You still pay taxes. You just pay them on a much smaller assessed value.

Who qualifies for agricultural use classification?

Qualifying comes down to three things: minimum acreage, active agricultural use, and in about half the states, a minimum gross income from farming. Miss any one your state requires and the application fails.

Minimum acreage varies wildly by state. Georgia requires at least 10 acres under the Conservation Use Valuation Assessment program, with smaller adjacent tracts sometimes qualifying ^[2]. Texas has no hard statutory acreage minimum but requires that the land has been used for agriculture for at least five of the seven preceding years and that farming is the land's primary use. California's Williamson Act has no state-mandated minimum, but most counties won't sign a contract for fewer than 10 acres of non-prime farmland or 100 acres of timberland.

Active use is where most people get tripped up. Mowing a field doesn't count. You need real agricultural production: crops, livestock, poultry, nursery products, timber, aquaculture, or in some states bees and horses kept for commercial breeding or sale. Many states accept a lease to a working farmer as evidence of agricultural use. That's an underused option for residential landowners who don't farm themselves.

Gross income minimums exist in roughly half the states. Virginia requires at least $1,000 in annual gross farm income for its use-value program ^[3]. Tennessee requires at least $1,500 in annual gross income from farming or forestry ^[1]. New York's Agricultural Assessment program requires $10,000 in average gross sales over two years for parcels of 7 acres or more ^[12]. These numbers sound modest. They still require documentation: Schedule F, sales receipts, grazing lease records.

A few states add a length-of-use requirement on top. Texas's five-of-seven-year history rule is the one people cite most. Maryland requires two years of active agricultural use before you can apply.

One more thing. The land must typically be used primarily for agriculture. Own a five-acre lot with a house, a garden, and some chickens, and most assessors won't classify the whole parcel. The residential homesite gets carved out and taxed at market value, with only the farm acres getting the preferential assessment.

How much can a farm designation actually save you?

It depends entirely on your land's development pressure. In rural counties where farmland and buildable land are priced about the same, the savings are modest. In suburban and exurban areas where a five-acre parcel is worth $500,000 to a builder but earns $2,000 a year growing hay, the savings are enormous.

Tennessee's state comptroller has tracked the greenbelt program for decades. In some counties, farmland assessed under agricultural use carries an assessed value less than 5% of its development market value ^[1]. That's a 95% cut to the tax base on those acres.

California's Williamson Act lands covered roughly 16 million acres in recent reporting years, according to the state Department of Conservation, with the program historically supported by a state subvention to counties ^[4].

Here's the arithmetic that matters. Say your county rate is 1.2% and your five farmable acres would otherwise be assessed at $400,000. You'd owe $4,800 a year on those acres. If agricultural use pins those same acres at $40,000 based on their income capacity, your bill drops to $480. That's $4,320 saved every year, for filing one application.

The table below shows how several states structure their agricultural tax benefit, drawn from published statutes and agency guidance.

State-by-state comparison: how do agricultural tax programs differ?

State	Program Name	Min. Acreage	Income Requirement	Rollback Period	Rollback Penalty
Texas	Ag Appraisal (Tax Code §23.41)	None (5-of-7 yr use)	None statutory	5 years	Back taxes + 7% interest/yr
California	Williamson Act	10 acres (most counties)	None	9-year contract nonrenewal	None (taxes normalize over 9 yrs)
Georgia	CUVA / FLPA	10 acres (CUVA)	None	10-year contract	40% of fair market value penalty
Virginia	Use-Value Assessment	5 acres	$1,000 gross/yr	5 years	Back taxes + 6 to 10% interest
Tennessee	Agricultural Classification	15 acres (primary)	$1,500 gross/yr	3 years	Back taxes + interest
New York	Agricultural Assessment	7 acres	$10,000 avg gross sales	Rolling annual	None for nonrenewal; prorated
Florida	Agricultural Classification	None	"Good faith" farming intent	5 years	Back taxes + 15% penalty
North Carolina	Present-Use Value	10 acres (farm)	$1,000 gross/yr average	3 years	Back taxes + 5% simple interest

Sources: Texas Tax Code §23.41 ^[5]; California Dept. of Conservation ^[4]; Georgia CUVA statute O.C.G.A. §48-5-7.4 ^[2]; Virginia Code §58.1-3230 ^[3]; North Carolina Present-Use Value ^[11]; New York Agricultural Assessment ^[12].

A few notes. Florida's program is the friendliest of the group: no minimum acreage, no income test. The standard is whether the use counts as "good faith" commercial agriculture as judged by your county property appraiser. That subjectivity cuts both ways, so your documentation quality matters more, not less. Florida landowners should start with the Florida Department of Revenue's property tax section ^[7].

Texas's lack of an income requirement sounds generous. The five-of-seven-year historical use rule catches new landowners off guard. Buy a property that was farmed before you, and you can inherit that history, but you'll need to prove it with aerial photos, prior-owner affidavits, or county records.

How do you apply for agricultural use classification?

You apply through your county assessor (the county property appraiser in Florida, the board of assessors in Georgia). In most states you file once and the classification renews automatically as long as your use continues. In contract states like California and Georgia, you sign an agreement committing to continued agricultural use for a set number of years.

The standard process runs five steps:

1. Get the application form from your county assessor's website or office. There's no universal federal form. 2. Gather your supporting documentation. This is where applications succeed or fail. 3. Submit before the deadline. Miss it and you wait another full year. 4. Respond to any request for more information from the assessor's office. 5. If approved, check that your tax bill reflects the new classification. Errors happen.

Expect to provide a copy of the deed showing ownership, plus evidence of agricultural use. That evidence can include a signed farm lease, grazing agreements, crop insurance certificates, USDA Farm Service Agency records (Form 156EZ from your local FSA office is widely accepted), sales receipts for livestock or crops, or IRS Schedule F from your most recent return. Date-stamped photographs help but aren't always required. In some counties an assessor site visit replaces much of the paperwork.

If you lease your land to a farmer instead of farming it yourself, get a written lease for genuine commercial production. A handshake deal with your neighbor to run a few cattle won't hold up in many counties. A signed multi-year grazing lease at market rate will.

For properties with both a home and farm acreage, you'll usually need a survey or parcel map showing the homesite the assessor will exclude. Some assessors do this automatically. Others make you note the homesite acreage on your application.

What are the application deadlines for farm classification?

Deadlines are where homeowners lose money fastest. Most states tie the agricultural classification deadline to the assessment date or the tax year, and they rarely grant extensions to people who simply didn't know.

Here's what the common deadlines look like:

• Texas: Applications are due before May 1 of the tax year. Late applications require a good-cause showing and a $500 penalty fee, per Tax Code Section 23.43 ^[5].
• Georgia: File by April 1 of the year the preferential assessment is sought, per O.C.G.A. §48-5-7.4 ^[2].
• Florida: Apply by March 1. The Florida Department of Revenue is firm on the date ^[7].
• California (Williamson Act): Counties accept new-contract applications during a window that varies, often late summer through early fall.
• Virginia: File by November 1 of the year before the tax year, since Virginia's assessment dates run ahead of the tax year ^[3].
• New York: The deadline is generally March 1 for that year's assessment roll, though the state runs a two-deadline structure tied to school district and county rolls ^[12].
• North Carolina: File during the regular listing period, January 1 through January 31 in most counties ^[11].

Miss the deadline and don't just give up. Some assessors have informal late-filing processes or can apply the classification prospectively from a future assessment date. Call and ask directly.

What is rollback tax and when does it apply?

Rollback tax is the recapture of your past savings when land leaves agricultural use. Most states make you repay the tax break from the last several years, plus interest. That's the feature that scares people, and it should.

Rollback triggers automatically when you:

• Sell the land for development
• Convert it to residential or commercial use
• Subdivide it
• Stop farming without keeping an approved agricultural operation going
• Let a farm lease expire without renewing or replacing it

The lookback period and interest rate differ by state. Texas goes back five years and charges 7% interest per year on the unpaid difference ^[5]. Virginia's rollback covers five years at a rate set by the state tax commissioner ^[3]. North Carolina goes back three years at 5% simple interest ^[11]. Georgia's CUVA program charges a penalty of 40% of the fair market value of the converted land, which can be brutal on high-value suburban tracts ^[2].

Georgia's 40% penalty is worth staring at, because it's not back taxes. It's a flat penalty on fair market value, stacked on top of any back taxes owed. On a 20-acre parcel outside Atlanta worth $800,000 at development value, that's a $320,000 penalty the moment you convert. Anyone buying CUVA-enrolled land should carry that figure into their closing math.

Rollback doesn't always follow a sale. In Texas, sell farmland to another farmer who keeps up the agricultural use, and rollback never triggers. What matters is whether the farming continues, not whether the deed changes hands.

One situation trips people up: death of the owner. In most states, inheriting agricultural-use land does not trigger rollback. You step into the prior owner's classification, subject to continuing the qualifying use. Check your state statute before you assume it. New York and a few others have specific rules for inherited parcels.

Can hobby farmers and residential landowners qualify?

Here's where honest advice splits from what some tax attorneys will sell you. A real hobby farm almost never qualifies, but a residential landowner with genuine acreage has more paths than most realize.

Keep chickens for your own eggs, grow vegetables for the family, and sell a few dozen eggs at a farm stand, and you won't qualify in most states. The income and use requirements exist precisely to exclude that. Assessors know what a commercial operation looks like, and a tidy suburban lot with raised beds and a coop isn't it.

That said, real acreage opens real options.

Leasing is the most underused path. Have 15 or 20 acres and no interest in farming it yourself, and a legitimate lease to a local farmer (row crops, hay, cattle grazing, or beekeeping in some states) can establish the qualifying use. The lease needs to be written, at market rate, for genuine commercial production. USDA's Farm Service Agency keeps records of farm operations that back up your documentation ^[9].

Timber is another route. Many states count commercial timber production as agricultural use. A managed timber stand doesn't require daily farm work. You contract with a forestry management company, get on a management plan, and the county classifies the land.

Beekeeping qualifies in Texas, and the Texas Comptroller publishes guidance on hive counts (generally around 6 colonies per 20-acre parcel, scaled down for smaller tracts) ^[8]. Some Florida counties accept it. California has no specific beekeeping provision under the Williamson Act, though a county may accept it under general agricultural use language.

Horses are complicated. A horse kept for pleasure is not an agricultural use anywhere. Horses kept for commercial breeding, boarding for a fee, or training for sale typically qualify. Commercial intent and actual revenue are what carry the day.

What evidence do you need to defend your farm classification if it's challenged?

Treat your evidence file the way a business treats its books. Once you have the classification, your assessor will review it periodically, and in fast-developing counties those reviews come every few years or even annually.

The strongest evidence package starts with FSA farm records. Your local USDA Farm Service Agency office keeps records of enrolled farm tracts. Get a farm tract number and enroll in FSA programs (even ones you never actually draw on) and you create a federal record of agricultural use that most county assessors treat as authoritative. The process is free and takes one visit to your county FSA office ^[9].

Annual income documentation comes next. Keep every sales receipt: a check from a grain elevator, a lease payment from a farmer using your land, a beef sale record from a stockyard, a honey sales log. Filing IRS Schedule F (Profit or Loss From Farming) is powerful, because it means you've declared agricultural income to the federal government ^[10].

Photographic documentation matters too. Date-stamped aerial or ground-level photos showing crops, livestock, haying, or timber management across the year. Many assessors pull Google Earth history to check whether the land actually looks farmed.

Lease agreements. If you lease to a tenant farmer, keep the signed lease and every amendment. Verbal leases are hard to prove and leave you exposed during a review.

Crop insurance certificates. Buy crop insurance through USDA's Risk Management Agency and that certificate is excellent proof of a commercial operation.

Get a notice that your classification is being removed or reviewed, and treat it exactly like a property tax appeal. You have the right to contest the assessor's determination. The process usually matches contesting your assessed value, right down to a formal hearing before a county board of equalization or appeals board. If you're handling that challenge yourself without a contingency firm, a DIY appeal kit like the one at TaxFightBack can walk you through building and presenting your evidence record.

Are there federal tax considerations that interact with farm designation?

Agricultural use classification is a state and local property tax program. It has no direct link to your federal income taxes. But several federal programs touch it in ways that matter to your paperwork and your estate.

USDA Farm Service Agency enrollment creates records that support your classification, as covered above. Registering as a farm operation with FSA also opens access to disaster assistance, conservation cost-sharing, and loan programs. None of that is required to keep your classification. It strengthens your documentation a lot ^[9].

If you're paid under USDA's Conservation Reserve Program (CRP) to keep land in conservation cover, most states still grant agricultural use classification because the land sits in a federal agricultural program. Texas, Georgia, and Virginia all accept CRP enrollment as qualifying use. Check your state's guidance before relying on it.

Estate planning is where the federal-state link matters most. The IRS allows a special use valuation under IRC Section 2032A for farmland in a taxable estate, valuing the farm at its agricultural use value rather than fair market value for estate tax purposes. The maximum reduction is $1,390,000 for 2024, indexed for inflation ^[10]. Keep your state classification and federal farm records current and the 2032A election gets much simpler if your estate needs it.

Selling appreciated agricultural land creates capital gains exposure at the federal level regardless of how the property was taxed locally. The farm classification doesn't change your federal basis or your gain on sale.

What if your county denied your farm classification application?

A denial is not final. Every state gives you the right to appeal a denied agricultural use application, and the process closely tracks a standard property tax assessment appeal.

Read the denial letter first, carefully. It should state the specific grounds: insufficient acreage, failure to show active agricultural use, failure to meet the income threshold, or a missed deadline. The grounds decide your strategy, because your appeal has to answer each one head on.

The forum depends on your state. In Texas, you appeal to the county appraisal review board using the same protest form as any value dispute. In Georgia, you appeal to the county board of assessors and then to the state administrative law judge process if needed. In Virginia, appeals go to the circuit court or the state tax commissioner depending on the issue. In Florida, you petition the value adjustment board.

Most denied applications aren't a valuation fight. They're a factual one: did your land qualify? So your appeal has to lead with evidence of use, not arguments about value. Bring lease agreements, FSA records, sales receipts, farm income tax returns, photographs, and any expert testimony you can get from your county Extension office or a local agricultural lender who can speak to the commercial nature of your operation.

Extension offices at land-grant universities can sometimes write a letter describing the agricultural operation on your property. Your state's land-grant university usually keeps a county-level Extension presence. A letter from that professional carries real weight with appeals boards.

Counties with heavy development pressure, especially suburban ones around big metros, have a financial reason to deny or narrow agricultural classifications, because the tax base grows with market-value assessments. Expect skepticism and bring thorough documentation. The gwinnett-county-tax-assessor and la-county-property-tax guides on this site show how assessors in high-growth counties handle disputed classifications.

How do you maintain the classification year after year?

Getting the classification is step one. Keeping it is the standing job, and losing it is easy if you go quiet.

Most states require annual or periodic renewal of supporting documentation even when the formal application is one-time. Georgia's CUVA runs a 10-year covenant that auto-renews unless you opt out. Texas's agricultural appraisal is reviewed every year by the appraisal district, and any year the chief appraiser questions the use, they can visit the property or request records. California's Williamson Act contract renews annually (each year adding another year to the term) unless you file a notice of nonrenewal.

A few habits protect the classification. Keep your FSA farm registration current and update it when the operation changes. Don't let your farm lease lapse without an immediate replacement. If you stop one farming activity, start a qualifying new one before the old one ends. Keep a paper trail for every agricultural transaction, however small. Sell hay, keep the receipt. Receive a lease payment, deposit it by check so there's a bank record.

If your county is reassessing nearby land at market value and your neighbors' lots are being priced for development, expect closer scrutiny of your classification. That's the moment to reach out to your assessor's office with fresh documentation rather than wait for a review notice.

Where property records live online, check your parcel record every year to confirm the agricultural use code still shows correctly. A data entry error can strip a classification with no formal review at all. The montgomery-county-property-tax and santa-clara-property-tax guides cover how to read your parcel record online in those jurisdictions, and the approach carries over elsewhere.

Frequently asked questions

How many acres do you need for agricultural tax classification?

It depends on your state. Virginia requires as few as 5 acres. Georgia and North Carolina require 10 acres for most programs. Tennessee requires 15 acres as the primary agricultural tract. Texas has no statutory acreage minimum but requires five years of documented agricultural use. Florida also has no minimum acreage. Always check your specific state statute and county rules, because some counties apply stricter local standards than the state baseline.

Does a farm lease qualify land for agricultural classification if I don't farm it myself?

Yes, in most states. A written lease to a working farmer for commercial agricultural production qualifies as agricultural use in Texas, Georgia, Virginia, Florida, North Carolina, and most other states. The lease must be for genuine commercial farming, not a token arrangement. A market-rate, written, multi-year lease to a neighboring farmer for grazing or row crops is the most defensible option for residential landowners who want the classification without farming themselves.

What is the rollback tax and how much could I owe?

Rollback tax is the recapture of tax savings when land leaves agricultural use. The lookback period ranges from 3 years (North Carolina) to 10 years (Georgia CUVA contracts). Texas charges back taxes plus 7% annual interest for 5 years. Georgia adds a penalty of 40% of the converted land's fair market value on top of back taxes. Before selling or converting agricultural-use land, calculate your rollback exposure carefully, and disclose it to any buyer.

Can I get agricultural classification for a property that has a house on it?

Yes, but the homesite is almost always carved out and taxed at market value. Only the acreage used for farming receives the agricultural assessment. The assessor determines the homesite area, often one to five acres surrounding the residence, and taxes that portion normally. The remaining acreage, if it meets the state's agricultural use requirements, receives the preferential assessment. Having a house on the property does not disqualify you from the farm classification on the farm portion.

Does beekeeping qualify for agricultural property tax classification?

It depends on the state. Texas explicitly allows beekeeping as a qualifying agricultural use under Tax Code Section 23.51, with specific minimum hive counts per acre (roughly 6 colonies per 20 acres for most land). Some Florida counties accept beekeeping. Most other states' statutes are silent on beekeeping specifically, leaving it to the county assessor's discretion. If you want to pursue beekeeping as your qualifying agricultural activity, get a written opinion from your county assessor before investing in the operation.

How does California's Williamson Act work and is it still active?

The Williamson Act creates a contract between the landowner and the county, restricting land to agricultural use for a rolling 9-year term. In exchange, the land is assessed on its income-producing capacity rather than market value. It is still active statewide, though some counties reduced participation as the state's Open Space Subvention support shrank. As of recent Department of Conservation data, roughly 16 million acres remain enrolled. Contact your county agricultural commissioner or assessor to apply.

What happens to agricultural classification when I sell the property?

The classification doesn't automatically transfer to the buyer. In Texas, if the buyer continues the same agricultural use, rollback doesn't trigger and the new owner can apply to continue the classification. In states with contracts (California Williamson Act, Georgia CUVA), the contract runs with the land and the buyer assumes its obligations. In most other states, the buyer must file a new application. Sellers should disclose the classification status and any rollback exposure in the purchase agreement.

What income do I need to show to qualify for farm classification?

Income requirements vary significantly. Virginia requires $1,000 in annual gross farm income. Tennessee requires $1,500. North Carolina requires a three-year average of $1,000 per year. New York requires a two-year average of $10,000 in gross sales. Texas and Florida have no income requirement, though Florida requires evidence of commercial farming intent. Texas focuses on history of use rather than income. Where income is required, IRS Schedule F, crop sales receipts, and livestock sale records are the standard documentation.

Can Conservation Reserve Program (CRP) land qualify for agricultural classification?

In most states, yes. Texas, Georgia, and Virginia explicitly accept USDA Conservation Reserve Program enrollment as qualifying agricultural use, because the land sits in a federal farm program even though it's not actively cultivated. The CRP contract itself is strong evidence of agricultural use. Check your specific state statute, because a handful of states require active agricultural production and don't count conservation set-asides. Your county FSA office can confirm whether your CRP enrollment supports a classification application.

How do I appeal if my agricultural classification is denied or removed?

The appeal process mirrors a standard property tax assessment appeal. In Texas, protest to the county appraisal review board. In Florida, petition the value adjustment board. In Georgia, appeal to the county board of assessors and then to the state ALJ process. Bring FSA records, farm leases, sales receipts, Schedule F, photos, and any supporting letters from county Extension agents. Address each specific ground the assessor cited for denial. Most states give you 30 to 90 days from the denial notice to file your appeal.

Does timber production qualify as agricultural use for property tax purposes?

Yes, in most states. Timber production is recognized as agricultural use in Texas, Georgia, Virginia, North Carolina, Tennessee, Florida, and many others. You typically need a forest management plan prepared by a registered forester, active timber stand management (planting, thinning, fire management), and in some states a minimum acreage (North Carolina requires 20 acres for forestry under its Present-Use Value program). Timber classification is an excellent option for residential landowners with wooded acreage who don't want to farm actively.

What USDA resources help support my agricultural classification application?

Your county USDA Farm Service Agency office is the most useful starting point. They can register your property as a farm tract, issue a farm number, and generate records showing agricultural use history. FSA Form 156EZ (Farmed Land Record) is widely accepted by county assessors as evidence of agricultural use. Enrollment in any FSA program, including farm loans, conservation programs, or disaster assistance, creates federal documentation that strengthens your county classification application. FSA services are free to access.

If I inherit land that had agricultural classification, does the rollback tax trigger?

Generally, no. Inheriting agricultural land does not trigger rollback in most states, including Texas, Georgia, and Virginia, as long as you continue the qualifying agricultural use. You step into the prior owner's classification. However, you typically need to notify the assessor of the ownership change and, in contract states like California and Georgia, formally assume the existing contract. If you stop farming after inheriting, rollback would then apply from the date agricultural use ceased. Confirm your state's specific inheritance rules with the county assessor.

Sources

1. Tennessee Comptroller of the Treasury, Division of Property Assessments, Greenbelt Program: In some Tennessee counties, farmland assessed under agricultural use carries an assessed value less than 5% of its market value for development purposes, and the greenbelt program requires at least $1,500 in annual gross farm income.
2. Georgia Department of Revenue, Property Tax (Conservation Use Valuation Assessment), O.C.G.A. §48-5-7.4: Georgia CUVA requires at least 10 acres and imposes a penalty of 40% of fair market value on converted land upon breach of the 10-year covenant.
3. Virginia Department of Taxation, Land Use Assessment, Virginia Code §58.1-3230: Virginia's use-value assessment requires at least 5 acres and $1,000 in annual gross farm income; applications are due by November 1 of the preceding year.
4. California Department of Conservation, Williamson Act Program: California Williamson Act lands covered roughly 16 million acres in recent reporting years, with the program historically supported by a state subvention to counties.
5. Texas Comptroller of Public Accounts, Property Tax (Agricultural and Timber Appraisal), Texas Property Tax Code §23.41 and §23.43: Texas requires agricultural use for 5 of the preceding 7 years; late applications require good cause and a $500 penalty; rollback covers 5 years at 7% annual interest.
6. USDA Economic Research Service, Land Use, Land Value & Tenure: Every state has some version of an agricultural use or current use assessment program that taxes farmland below its market value for development.
7. Florida Department of Revenue, Property Tax: Florida's agricultural classification application deadline is March 1; there is no minimum acreage or income requirement; the standard is good faith commercial agricultural use.
8. Texas Comptroller of Public Accounts, Agricultural and Timber Appraisal (Beekeeping), Tax Code §23.51: Texas accepts beekeeping as a qualifying agricultural use under Tax Code §23.51, requiring approximately 6 colonies per 20 acres, scaled for smaller tracts.
9. USDA Farm Service Agency, Farm Programs and Services: County FSA offices maintain farm tract records and issue farm numbers; FSA Form 156EZ is widely accepted by county assessors as evidence of agricultural use history.
10. IRS, About Form 706 (Special Use Valuation under IRC Section 2032A): The IRS allows special use valuation for farmland in taxable estates under IRC Section 2032A, with a maximum reduction of $1,390,000 in 2024, indexed for inflation.
11. North Carolina Department of Revenue, Property Tax (Present-Use Value): North Carolina's Present-Use Value program requires 10 acres for farm tracts, a 3-year average gross income of $1,000 per year, and a 3-year rollback with 5% simple interest on conversion.
12. New York State Department of Taxation and Finance, Property Tax (Agricultural Assessment): New York's agricultural assessment requires 7 acres and a 2-year average of $10,000 in gross sales; the application deadline is generally March 1 for that year's assessment roll.