Judges: JAMES D. \"BUDDY\" CALDWELL, Attorney General
Filed Date: 4/19/2011
Status: Precedential
Modified Date: 7/5/2016
Dear Mayor Watkins:
Your request for an Attorney General's Opinion has been assigned to me for research and reply. You ask several questions regarding land use valuation for ad valorem tax purposes.
First, you ask what requirements must be met in order for land to be assessed at its use value. Under La.Const. art. VII, § 18(C), "[b]ona fide agricultural, horticultural, marsh, and timber lands, as defined by general law, shall be assessed for tax purposes at ten percent of use value rather than fair market value." Additionally, La.R.S.
In order to be classified as bona fide agricultural, horticultural, marsh or timber land and assessed at its use value under the provisions of Article VII, Section 18(C) of the Louisiana Constitution of 1974, it must meet the definition of bona fide agricultural, horticultural, marsh or timber land as described in R.S.
A. Be at least three acres in size, or have produced an average gross annual income of at least two thousand dollars in one or more of the designated classifications for the four preceding years, and
B. The landowner has signed an agreement that the land will be devoted to one or more of the designated uses as defined in R.S.
Thus, all of the requirements of La.R.S.
Next, you ask whether land can be assessed at use value if it has a home built on it. Again, as long as the requirements of La.R.S.
Thirdly, you ask whether it is permissible to assess land at use value if it is located in a zoning area in which use of the land for bona fide agricultural, horticultural, marsh or timber land purposes is prohibited. Nevertheless, we could not find any legal authority that requires a land owner to comply with zoning laws in order for his land to be eligible for use value assessment.
Next, you ask what the assessor's duties are if he becomes aware, via means other than owner self-reporting, that certain land is ineligible for use valuation.
La.R.S.
A. If land having a use value assessment ceases to meet the eligibility requirements described in Section 3 of this Act, the owner shall be obligated to notify the assessor in the parish or district where the property is located within sixty days following the effective date of loss of eligibility. Upon notification of loss of eligibility the assessor shall reassess the property immediately, to become effective the following tax year.
B. (1) If land having a use value assessment is sold for a price four times greater than its use value, the land shall be presumed to be no longer eligible to be classified as bona fide agricultural, horticultural, marsh, or timber land. Upon application as provided in R.S.
(a) That the sales price paid includes things of value which are susceptible of appraisal including, but not by way of limitation, standing crops or timber, improvements, equipment, etc.; or
(b) That the land is actually in bona fide agricultural, horticultural, marsh, or timber land use and meets the requirements of R.S.
(2) Upon such demonstration, the landowner shall be entitled to a use value classification.
Further, La.R.S.
In the event that the landowner obtains a use value assessment by means of false certifications on his application, or fails to timely notify the assessor of loss of eligibility for use value assessment as required by Section 5(A) of this Act, he shall be liable for a penalty equal to five times the difference between the tax under a market value assessment and the tax under a use value assessment for the tax years in which the use value assessment was attributable to the false certifications or failure to timely notify the assessor of loss of eligibility.
As you can see, under La.R.S.
In conclusion, it is the opinion of this office that all of the requirements of La.R.S.
We trust this adequately responds to your request. However, if our office can be of further assistance, please do not hesitate to contact us.
Yours very truly,
JAMES D. "BUDDY" CALDWELL
Attorney General
By: __________________________
BENJAMIN A. HUXEN II
Assistant Attorney General
JDC/BAH II