COM 0118.029 2002-2004 - Laserfiche WebLink

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Honorable Aaron S.Y. Chung, Chair, and Members Finance Committee September 30, 2004 Page 5 justify a large tax base, as agricultural users usually have little or no impact on municipal services. In addition, historically, the real property tax system was used as an "enforcement tool" to make landowners comply with agricultural uses. However, in today's world, the real property tax system should not be used as an enforcement tool for land use. If the land is zoned for agriculture but is not being used for agriculture, then the remedy is to pursue the matter as a zoning violation, not through some type of punitive taxation policy. Allowing agricultural land to lie fallow, particularly after scores of years of intensive plantation cultivation, is not necessarily a bad thing. The federal government pays farmers across the Midwest and elsewhere under multi-year contracts not to grow crops. Finally, when I appeared before this Council's Finance Committee in August, the question was posed regarding how best to create a tax system that addresses the problem of gentlemen estates in the agricultural district. The focus historically has been on attempting to define "farming," and if "gentlemen estates" were not farming, they would be assessed accordingly. A different approach maybe to focus on improved value on the property rather than the agricultural use of the property. Much of the concern we have heard deals with the large and expensive homes being constructed on the agricultural zoned lands. The County may consider setting some threshold based on the value of the improvements made on the property that is reasonable to allow for active agricultural users who have a residence on their property. However, as home improvement values exceed this threshold, the homeowner would be taxed at a higher rate. As a suggestion, we propose that the Council consider the following: 1. Add two new classes of lands (Section 19-53 (e)) under agriculture called unusable or waste lands and vacant lands. Allow the Council to set a special rate for waste or unusable and vacant agricultural lands. 2. Allow for Exemptions for Agricultural Improvements to encourage investment in maintaining and improving infrastructure and best management practices for agricultural lands. 3. Agricultural Tax Rate. The Task Force proposed that the tax rate for agricultural zoned lands be set annually by the Council at a rate that is equal to or less than the rate for properties classified improved residential." 4. The tax assessment system needs to allow for multiple uses on a single parcel The taxes should reflect the actual use of lands on the parcel, not generalize or blend the