La Plata County Assessor Carrie Woodson is giving farmers and ranchers a heads up that her office has begun requesting information to verify the agricultural classification of land.
Unlike residential or commercial properties, which are taxed based upon the market value of the land, agricultural properties are taxed based on the value of what the land can produce.
At least every five years, the county assessor is required to verify that all agricultural properties are in fact eligible for the generous tax break, given that it can lead owners who have ceased using their property for agricultural purposes, or maybe never did, to try and retain the classification.
As the county develops, Woodson says the number of properties classified as agriculture has been shrinking – especially those under 40 acres.
“It’s real obvious if property is being used (for agriculture),” she said. “ … You can see it when you drive by. You see the cows, you see the crops, you see them actively doing it. And when you ask for information, they have Schedule F (tax form), they have receipts, they have leases.”
The tax benefits can be enormous. An agricultural property’s actual value is as low as $11 per acre and no higher than $712 per acre, Woodson said.
Woodson and her office’s employees keep tabs on properties throughout the year, and conduct their quinquennial verification throughout the biennial process of valuing properties.
Every two years, she said 50 to 100 properties are kicked off the list of agricultural properties. There are approximately 10,000 parcels that are classified as agricultural land.
Last year, Woodson’s office began sending out letters and requests for information to agricultural property owners. Receipts from the sale of products, leases and tax documents are all accepted as proof.
When an agricultural property sells, Woodson’s office immediately tries to ensure that it remains appropriately classified. But sometimes, owners cease agricultural use without selling land and the assessor’s office needs to verify its classification. The state does not set hard and fast parameters for what qualifies as agricultural use.
Contrary to what some believe, letting previously agricultural land “rest” does not qualify it for agricultural classification, although land registered in crop rotation programs do qualify.
“When I talk to farmers, I always say that: ‘Is this you? Do you put the food on all of our tables? That’s what agricultural classification is for,’” Woodson said.
Notices of reclassification will be sent out May 1, the same day as notices of valuation.
rschafir@durangoherald.com
