Agenda - 01-16-1999- 3 - Laserfiche WebLink

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Presentation At The January 16, 1999 BOCC Goals Retreat By The Agricultural Districts Advisory Board December 18, 1998 Page Two 1) Farms enrolled in Voluntary Agricultural Districts may be exempted from property taxes on farm buildings, machinery and equipment. This exemption would remain in effect as long as the farm remains in a VAD status. 2) Farms-enrolled in Voluntary Agricultural Districts may defer 50% of their property taxes. This would be a 50% reduction in the taxes already assessed at agricultural or forest use -value (primary residence & houselot excluded). This deferral would remain in effect as long as the farm remains in VAD status (enrollment for a renewable, 10 -year term). Farms that withdraw from VAD status before the end of the 10 -year term would be required to repay the amount equal to the 50% deferral from the previous three years plus the current year. 3) Farms in Voluntary Agricultural Districts that put land in a conservation easement may be exempted from property taxes on that land. Conservation easements. must meet criteria for acceptance under the LESA (Land Evaluation and Site'Assessment) system developed by the MRCS. This would apply only ' to perpetual easements donated to the county, a land conservancy, or other non -profit organization as a charitable contribution. Easements that have been purchased from landowners through a local, state, or federally funded PDR program would not be eligible for this tax abatement. 4) Enrollment in a Voluntary Agricultural District is a requirement ' for eligibility to sell agricultural conservation easements. Should Orange County establish a program for the purchase of agricultural conservation easements, only farmland owners who are enrolled in VADs would be eligible to apply. Selection of farms will be determined by a ranking system using LESA. VADs would also be eligible to apply for purchase of farmland easements from the NC Farmland Preservation Trust Fund and the Federal Farmland Protection Program. Creating real financial incentives for VAD participation would benefit Orange County in several ways. Foremost, only full -time farmers who are committed to agriculture for the long term would benefit from these incentives. From a planning and land use perspective, the creation of new VADs would identify `core areas' where agriculture is strongest, and help stabilize land uses adjacent to protected farms. VADs could help build support for future County farmland preservation programs. For the community at large, the environmental and aesthetic benefits of preserving farmland and open space will continue to be realized. Significant acres of farmland will be preserved through private landowner initiative at low cost to the County. Because this proposal to change the Voluntary Agricultural Districts Program also recommends changes in taxation policy, it would require the enactment of enabling legislation by the NC General Assembly. We ask that you give your strongest endorsement to these proposals to our legislative delegation for consideration in the next session of the Legislature. Sincerely, -TWdI *f4w/ Trudy Matheny, PIID Chair T Ndb