The North Carolina Legislature enacted a program entitled the "Land Use Program" designed to give relief to specific landowners for property that is being used for the production of agricultural, horticultural or forest products. If property loses it's eligibility for any reason, deferred taxes become due for the current year plus three previous years, plus interest for all prior years. If only a part of the qualifying tract loses it's eligibility, a determination shall be made of the amount of the deferred taxes applicable to that part, and that amount shall become payable with interest.

To receive an application for the Land Use Program, call our office at (252) 426-7010. The completed application form must be filed with the Tax Department during the regular listing period, which is the month of January. Applications received after the listing deadline will not be considered for the current year or future years. A new application should be filed the following January.

Agricultural (Farm Use)

Agricultural land means land that is a part of a farm unit actively engaged in the commercial production or growing of crops, plants, or animals under a sound management program. Agricultural land includes woodland and wasteland. The requirements for an agricultural deferment are as follows:

• May consist of more than one tract of agricultural land, but a least one of the tracts must meet the requirements and each tract must be under a sound management program.
• One tract must consist of at least 10 acres that are in actual production and are not included in a farm unit.
• Must have produced an average gross income of at least $1,000 for the three years preceding January 1 of the year in which this benefit is claimed. Gross income includes income from the sale of the agricultural products produced from the land and any payments received under a governmental soil conservation or land retirement program.
• If individually owned, the property must be the owner's residence or have been owned by the current owner or a relative of the current owner for four years preceding January 1 of the year in which this benefit is claimed.

Forest Land

Forest Land means land that is part of a forest unit that is actively engaged in the commercial growing of trees under a sound management program. Forest Land includes wasteland that is part of the forest unit, but the wasteland included in the unit shall be appraised under the use value schedules as wasteland. The requirements for a Forest Land deferment are as follows:

• May consist of more than one tract of Forest Land, but at least one of the tracts must meet the requirements and each tract must be under a sound management program.
• One tract must consist of at least 20 acres that are in actual production and are not included in a farm unit.
• If individually owned, the property must be the owner's residence or have been owned by the current owner or a relative of the current owner for four years preceding January 1 of the year in which the benefit is claimed.

Horticultural

Horticultural land means land that is a part of a horticultural unit that is actively engaged in the commercial production or growing of fruits or vegetables or nursery or floral products under a sound management program. Horticultural land includes woodland and wasteland that is a part of the horticultural unit, but the land included in the unit shall be appraised under the use value schedules as woodland or wasteland. The requirements for horticultural deferment are as follows:

• May consist of more than one tract of horticultural land, but a least one of the tracts must meet the requirements and each tract must be under a sound management program.
• One tract must consist of at least 5 acres that are in actual production.
• Must have produced an average gross income of at least $1,000 for the three years preceding January 1 of the year in which this benefit is claimed. Gross income includes income from the sale of the horticultural products produced from the land and any payments received under a governmental soil conservation or land retirement program.
• If individually owned, the property must be the owner's residence or have been owned by the current owner or a relative of the current owner for four years preceding January 1 of the year in which the benefit is claimed.

Historical Deferment

Real property designated as a historic structure or site by a local ordinance adopted, pursuant to G.S. 160A-399.4 or designated as a historic landmark by a local ordinance adopted pursuant to G.S. 160A-400.5 is designated a special class of property under authority of Article V, Section 2(2) of the North Carolina Constitution.? Property so classified shall be taxed uniformly as a class in each local taxing unit on the basis of fifty percent (50%) of the true value of the property as determined pursuant to G.S. 105-285 and 105-286, or 105-287. After property has been designated as historical property, the owner is required to submit a completed historical deferment application with the Tax Department.

The deferred taxes will not become due unless or until the property loses it's eligibility for the benefit of this classification. This could occur because of a change in an ordinance designation or a change in the property which causes it's historical significance to be lost or substantially impaired.