It values such property on the land's capacity to produce crops, livestock or timber, instead of its value on the real estate market. This lower taxable value reduces property taxes on the land. Taxpayers may qualify for agricultural productivity valuation under two different laws. Both individual and corporate owners are eligible under this provision if the land is used for a qualified purpose. Nearly all land that receives productivity valuation is under this law.
Agricultural use includes production of crops, livestock, poultry, fish or cover crops.
It also can include leaving the land idle for a government program or for normal crop or livestock rotation. Land which has been receiving agricultural productivity valuation may qualify as wildlife management land provided it is used in at least three of seven specific ways to propagate or maintain a population of indigenous wild animals for human use. Timberland must be used with the intent to produce income and be devoted principally to the production of timber. Both agricultural land and timberland must be devoted to production at a level of intensity that is common in the local area. The chief appraiser, with input from an agricultural appraisal advisory board composed of local agricultural and timber producers, determines the level or degree of intensity applicable to each type of agricultural or timber use.