Qualification and Valuation
Can leased land qualify?
Leased land can qualify for assessment and taxation under the FAA if the
acreage requirement is met and the production requirement is satisfied.
A purchaser or lessee may qualify the land by submitting, along with
the application from the owner, documents certifying that the production
levels have been satisfied.
What happens when land is withdrawn from FAA?
When land becomes ineligible for farmland assessment (such as when it is
developed or goes into non-use), the owner becomes subject to what is known
as a rollback tax. The rollback tax is the difference between the
taxes paid while on greenbelt and the taxes which would have been paid had
the property been assessed at market value. In determining the amount
of rollback tax due, a maximum of five years in question will be applied to
determine the tax amount.
ROLLBACK TAXES ARE DUE AND PAYABLE WITHIN 30 DAYS
AFTER NOTIFICATION. IF NOT PAID ON TIME, TOTAL ROLLBACK TAXES WILL BE
SUBJECT TO THE GREATER OF $10 OR 2% PENALTY, WHICHEVER IS GREATER, UNDER
SECTION 59-2-506, UCA 1953.
2004 Valuation Changes
The Utah State Tax Commission, based on a four-year study conducted by Utah
State University, has adjusted the values used for farmland assessment.
The basic changes in addition to the valuation changes include:
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A system has been developed to annually update values for land
assessment under the Farmland Assessment Act.
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Under the old system land with equal productive capabilities was
similarly valued by region. Under the new system land values
will be individualized for each county based upon agricultural
production, income, and expenses for that county. (5/20/99)
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