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`Y Is There a Role for VAD Boards in Present Use Valuation? By Steve Woodson, North Carolina Farm Bureau Walter Farm on High Rock Road, a VAD tarm in Cedar Grove Township, Orange County. N.C.G.S. Section 106 - 739(4) allows county commissioners to grant a VAD board the authority to "advise the board of county commissioners on projects, programs or issues affecting the agricultural economy or way of life within the county." County ordinances typically include this language in the grant of authority to their board, but may not actually use their VAD boards to advise them on agricultural issues within the county. The most important issue having an impact on agriculture that commissioners regularly address is likely the - doption of schedules, standards and rules be used by the county tax office in appraising farmland at its present use value for property taxes. The procedures involved in adopting present use value rules and schedules are complicated. They give farmland owners only one opportunity to be heard before the present use value schedules are adopted and a short window of opportunity for appeal afterward. If these schedules were provided to the county's VAD board for review first, it would greatly enhance the opportunity for farmer input. Employing the VAD board in this way would better define the issues raised by the proposed schedules. Although it would not take the place of the public hearing before the commissioners, VAD board review might resolve some landowner complaints before the matter ever comes before the board of commissioners. It also could reduce the likelihood of an appeal. Providing an extra opportunity for farmer involvement in the present use value appraisal process is especially important during the upcoming round of revaluations. In 2002 the General Assembly changed the method of calculating use values. For the past 30 years the "Present Use Value Manual" that has instructed counties on calculating use values based on capitalizing the 10 -year average net income that could be made by growing corn and soybeans. Beginning in 2003, the manual provided that use values will be calculated based on average cash rents paid for comparable farmland. While this change in methodology should not significantly change the tax burden on farmland, some counties may see an increase in present use values. It makes sense for boards of commissioners to seek as much public comment as possible before adopting use value schedules based on this new methodology. If your VAD board would like to review your county's use value schedules, it is important to bring the matter to the attention of your commissioners as early a possible. Your commissioners will have to instruct the tax office to deliver the new use value schedules to them in time for this extra level of review. Resources American Farmland Trust Gerry Cohn (336) 221 -0707 gcohn@farmland.org NCSU Cooperative Extension Service Ted Feitshans, Ag and Resources Economics Dept. (919) 51 5 -51 95 ted-feitshans@ncsu.edu For a list of North Carolina farmland protection laws and ordinances, see the NCSU Land Preservation Notebook: www cals ncsu.edu: 8050 /wq /LandPreservationNotebook/ North Carolina Farm Bureau Steve Woodson (91 9) 782-1705 swoodson @ncfb.net rr Anieryic an, 1=+.c.1,rin1and TrUSt Southeast Regional Office 24 Court Square NW, Suite 203 • Graham, NC 27253 336 - 221 -0707 - www.farmland.org 4