GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1999

S	1 

SENATE BILL 73*

Short Title:  Make Farmland Use Value Accurate.	(Public)

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Sponsors: Senators Hartsell, Cochrane, Dalton, Hoyle, Kerr, and Webster.

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Referred to:  Finance.

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February 15, 1999

A BILL TO BE ENTITLED
AN ACT TO UPDATE THE METHOD FOR DETERMINING THE PRESENT-USE VALUE OF AGRICULTURAL AND HORTICULTURAL LAND TO MORE ACCURATELY REFLECT ITS VALUE AS FARMLAND.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-277.2(5) reads as rewritten:
"(5)	Present-use value. – The value of agricultural or horticultural land when cash rents are capitalized at five percent (5%).  The value of forestland when expected net income is capitalized at nine percent (9%)."
Section 2.  G.S. 105-289(a)(5) reads as rewritten:
"(5)	To prepare and distribute annually to each assessor a manual that establishes all of the following:
a.	The cash rents for agricultural and horticultural land.  The Use Value Advisory Board must determine cash rents for agricultural and horticultural land by conducting a survey of cash rents at least once every three years.
b.	The expected net income for forestland.
c.	A value for nonproductive land equal to twenty-five percent (25%) of the lowest present-use value established for productive land or fifty dollars ($50.00) per acre, whichever is less.
	."
Section 3.  This act becomes effective July 1, 2001, and  applies to schedules of values, standards, and rules adopted pursuant to G.S. 105-317 for use for tax years beginning on or after that date.