Georgia’s conservation-use valuation program saves qualified
farmland owners more than $50 million each year on their property
tax bills. The first of their 10-year contracts expire this year.
But qualified taxpayers can renew their contracts after Jan.
1.
More than 16,000 ’92-style conservation use covenants will expire
Dec. 31. These covenants provide an average yearly savings of
more than $550.
Many qualified farm and forest landowners can earn tax savings
through 10-year CUV. Holders of ’92-style covenants should
consider, among other things:
- The valuation methods for the ’93-style CU covenants are
different. Some landowners in a few counties will see a
substantial increase over their old ’92-style covenants. - With a decade of experience behind county tax assessors and
the Georgia Department of Revenue Property Tax Division, some
landowners may find it harder to qualify for renewal under the
’93-style CU covenants.
Qualifying May Be Harder
Many county tax assessors feel many land parcels should not have
been entered into early covenants. The main issue seems to be
what constitutes a “bona fide agricultural or forest” operation
on the land.
In other words, many assessors feel this is the first chance they
will have to correct mistakes made in the first year this tax
relief program went into effect.
In discussing why your property qualifies, it’s important to
summarize the statute and regulations, as it applies specifically
to your property under the Official Code of Georgia Annotated
Section 48-5-7.4.
Qualifying elements of farm or forest property depend on the good
faith production of the land. That includes subsistence farming
and commercial production of farm products or timber.
Application Deadline
Applications for CU assessment must be filed with the county
board of tax assessors on or before the last day for filing ad
valorem tax returns in the county. In most counties, that’s March
1.
If the property is the subject of a reassessment, an application
for CU assessment may be filed in conjunction with or in lieu of
an appeal of the reassessment.
No more than 2,000 acres will be accepted, even in more than one
covenant in more than one county. If it’s accepted, the property
must remain devoted to its qualifying farm or forest use.
The owner must be a citizen, a beneficiary of a citizen’s estate
or trust; a nonprofit conservation organization designated under
Section 501 (c) (3) of the Internal Revenue Code; or a club
organized for pleasure, recreation and other nonprofit
purposes.
Owners of fewer than 10 acres will be expected to show some type
of evidence that they’re farming or growing trees.
Factors in Qualifying
Factors that may be considered in determining if the property is
qualified may include the:
- Nature of the terrain.
- Density of the marketable product on the land.
- Past usage of the land.
- Merchantability of the farm or timber product.
- Use or nonuse of recognized cultivation, harvesting and like
practices applicable to the product.
To qualify for the CUV program, the property must be used for
some agricultural purpose, such as:
- Growing, harvesting or storing crops.
- Feeding, breeding or managing livestock or poultry.
- Growing plants, trees, fowl or animals.
- Producing aquaculture, horticulture, floriculture, forestry,
dairy, livestock, poultry or apiarian products.
Get Started Now
If you have an expiring ’92-style covenant or would like to enter
the CUV program for the first time, get started now. Contact your
county tax assessor. Ask for help and details.
Your county
extension agent is a good source of information, too. You can
find further property tax information on-line through the web
pages of the University of Georgia Daniel B.
Warnell School of Forest Resources. Look in the information
library section under economics and taxes.
