La. Admin. Code tit. 61 § V-207

Current through Register Vol. 50, No. 6, June 20, 2024

Section V-207 - Use Value Properties

A. Assessors shall confirm eligibility of use value properties and list the properties indicating its use value classification, number of acres (by each classification), and a physical address (or clear directions to property) to enable the LTC staff appraisers to locate, if deemed necessary.

B. To be eligible for use value assessment classification, the property must be bona fide agricultural, horticultural, marsh or timberland and assessed at its use value under the provisions of Article VII, Section 18(C) of the Louisiana Constitution of 1974. Use value properties must meet the definition of bona fide agricultural, horticultural, marsh or timberland as described in R.S. 47:2301 ("Use value of bona fide agricultural, horticultural and timberland means the highest value of such land when used by a prudent agricultural, horticultural or timber operator for the sole purpose of continuing the operation, as a commercial agricultural, horticultural or timber use"). R.S. 47:2302 ("land devoted to the production for sale, in reasonable commercial quantities" or in the case of timberland "timberland under a contract with a state or federal agency restricting its use for timber production"), and further requirements are:

1. at least 3 acres in size (no rounding up to achieve this acreage requirement), or have produced an average gross annual income of at least $2,000 in one or more of the designated classifications for the four proceeding years, per R.S. 47:2303.A; and

2. the landowner has signed an agreement that the land will be devoted to one or more of the designated uses as defined in R.S. 47:2304;

3. taxpayer shall sign a use value application, which shall be considered permanent (except the parishes of Orleans and Jefferson, which require that the taxpayer shall sign a use value application at least every four years), per R.S. 47:2304(B)(1); except that in the event of a sale of the property, the purchaser must sign a new application within 60 days from date of the sale;

4. Loss of Eligibility. If land having a use value assessment is sold for a price four times greater than its use value, the land shall be presumed to be no longer eligible to be classified as bona fide agricultural, horticultural, marsh or timberland. Some legislative provisions are further identified in R.S. 47:2305;

5. if the land ceases to meet the use value eligibility requirements, the taxpayer is statutorily responsible for notifying the assessor where the property is located within 60 days following the effective date of loss of eligibility;

6. in the event that the landowner obtains a use value assessment by means of false certifications on his application, or fails to timely notify the assessor of loss of eligibility for use value assessment, he shall be liable for a penalty equal to five times the difference between the tax under a market value assessment and the tax under a use value assessment for the tax years in which the use value assessment was attributable to the false certifications or failure to timely notify the assessor of loss of eligibility (R.S. 47:2306).

La. Admin. Code tit. 61, § V-207

Promulgated by the Department of Revenue, Tax Commission, LR 31:702 (March 2005).

AUTHORITY NOTE: Promulgated in accordance with Louisiana Constitution of 1974, Article VII, Section 18(C), R.S. 47:1837 and R.S. 47:2301 through R.S. 47:2308.