Agenda - 06-28-1994-IX-B - Laserfiche WebLink

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11 In Table 3.1, assessment ratios for the rural portions of each township in Orange County were calculated using data from the Orange County Land Records System.The ratios were applied to the"Per Acre Assessed Value" of properties in the Preferential Assessment/Deferred Taxation Program to obtain the "Estimated Per Acre Market Value". As was the case with"use"values,the estimated market values per acre vary considerably.Values range from$6,505 per acre in Chapel Hill Township to$1,565 per acre in Little River Township. For the county as a whole, the estimated assessed market value is$3,074 per acre. As indicated previously, the difference between market value and agricultural value is the value of development rights. Using the estimates derived above, the average cost of development rights in Orange County would be approximately$2,768 per acre.Considerable variation could be expected,though, with values ranging from$1,300 to$1,800 in rural townships.In more urbanized townships,values would be considerably higher,ranging from$3,000 to$6,000 per acre.Although the overall average is in line with the predictions of the Forsyth County program administrator, the only reliable method for determining the cost of development rights is through an appraisal. 4. Where will the purchase of development rights most likely occur? Table 3.2 shows the distribution, by township, of acreage under the Preferential Assessment/Deferred Taxation Program in Orange County. Farm use participation is greatest in Little River, Bingham, Cheeks, and Cedar Grove townships, while forest use participation is greatest in Eno, Bingham, and Chapel Hill townships. TABLE 3.2 ACREAGE IN PREFERENTIAL ASSESSMENT/DEFERRED TAXATION PROGRAM ORANGE COUNTY, N.C. -APRIL, 1994 Farm Use Forest Use Combined Use Total Township Acres Acres Percent Acres Percent Acres Percen Under of Under of Under t of Use Total Use Total Use Total Value Acres Value Acres Value Acres Cedar Grove 51700 15599 . 30% 1464 3% 17063 33% Little River 35620 30899 87% 1538 4% 32437 91% Cheeks* 32700 10745 33% 2311 7% 13056 40% Hillsborough 15100 3305 22% 1254 8% 4559 30% Eno 24000 . 5357 22% 5039 21% 10396 43% Bingham 48900 18338 38% 5389 11% 23727 49% Chapel Hill 46700 8024 17% 5671 12% 13595 29% Total 254720 92267 37% 22566 1 9% 1 114833 45% NOTES: 1. Data for Cheeks Township (*) includes one horticultural operation. 2. Acreages are approximate, since some tracts are listed in one town- ship for tax purposes but actually extend across township lines.