By Bryant Spivey
Johnston County Extension Director
On January 2, 2025, like many of you, I received my new Johnston County tax value in the mail. You may or may not know that counties in NC are required by law to evaluate property values at a minimum of every eight years. This revaluation is coming just six years after the last revaluation. This is required such that each property owner is paying their fair share of important community services such as public schools, law enforcement, emergency management, public health, libraries and many more services that our local government provides.
Now, it is certainly true for me, and perhaps for you, that we do not like to pay taxes. I have had the opportunity to reflect on this a great deal over the years. A personal friend and wiser gentleman, whom I deeply respect, once said to me, “I have traveled to many countries and been to places with no taxes, I don’t want to live there!” I have reflected on that many times and I thankful that we live in a great country, state, and county.
The Johnston County Tax Administration will be doing much more work to provide information on property values and offer opportunities for property owners to be heard regarding concerns about individual property values. This information will be forthcoming. For the remainder of this piece, I will be speaking primarily to those that own larger parcels of land in Johnston County that is currently in farm or forest production.
The tax office is required to communicate the full value of all parcels in the county and this includes the value of farmland. However, there is a program in North Carolina called Present-Use Value that is very important to rural landowners especially those in growing counties where real land values are increasing, like Johnston County. This law is authorized in the NC statutes: G.S. 105-277.2 through G.S. 105-277.7. Often folks will call this “ag-use” but the more correct name of the overall program is Present-Use Value (PUV).
There are three types of land that may qualify for PUV.
Agricultural Land – is land that is actively engaged in commercial production of crops, plants, or animals. This includes crops like soybeans, grains, tobacco, cotton, peanuts, corn, horses and cattle. The important thing about all of these enterprises is the word commercial. These items must be produced and sold as the program is based upon production. It is not possible to just plant grass, buy a few animals, and then let them graze. You must produce animals and sell them and you will need documentation that establishes these sales. It is also important that for qualification there must be at least 10 acres of cropland or pasture. Your house, barn, swimming pool or other is not included.
Horticultural Land – is land that is actively engaged in commercial production of fruits, vegetables, nursery products, or floral products. Examples of horticultural products includes peaches, strawberries, pecans, sod, shrubs, greenhouse plants, and Christmas trees. For this category there must be 5 acres involved in production.
Forestland – is land that is actively engaged in the commercial production of trees for harvest. This cannot be simplly a natural area, wildlife plots, or for natural beauty. There must be a sound forest management plan that includes harvest of timber or other wood products at an appropriate time. To qualify for PUV under forestland requires a minimum of 20 acres in production.
To qualify for PUV there must be one tract of land that meets the acreage and production requirement individually. Additional smaller parcels can be included with a larger qualifying tract if the ownership is exactly the same and the use is the same. To qualify as agricultural or horticultural there must be minimum gross income of at least $1,000 on average over the previous three years. Forestland does not produce annual income and does not have that requirement.
So, the next question that you may ask is how does this help reduce my tax burden? On parcels enrolled in the PUV program, tax is paid based upon a schedule of values set forth by the 2025 Use-Value Manual. Enrolled landowners will pay taxes based on the following values:
Cropland $900/Acre
Forestland $300/Acre
Horticultural Land $1150/Acre
Wasteland $40/Acre
This schedule of values represents almost no change from the last tax valuation. This means enrolled landowners could conceivably pay even less tax on their land.
An Example
I selected a parcel from an area that I presume to be one of the highest value areas in the county. The parcel is near Clayton, NC and very accessible to major highways. This piece of land includes both cropland and forestland and most of the land is useable. In addition there is a home and some other buildings. The total 2025 value of the parcel is approximately $3.4 million. However, the present use value is only $314,850. This represents a difference of or “deferred value” of approximately $3.08 million. That is $3.08 million in value for which the owner is not required to pay property tax. At the current tax rate of $0.67 this represents a savings of $20,670.51 of property tax each year. Instead, the owner pays the tax on the value of $314,850 the value of the home and other structures and the land they occupy and a
minimal value on the forest and crop land as mentioned above.
From the example, I think you can see that the Present-Use Value program is likely the most substantial and important farmland preservation tool in North Carolina.
Other Management Considerations
So, if you are a rural landowner and you would like to remain as such, seek to manage your property in a manner that it can qualify and remain enrolled in PUV. To achieve this you must keep it in production. You also have to manage it in a manner that it is not cut into smaller pieces through the generations such that it no longer qualifies. If you do not have a good estate plan, you need one. Do not let the courts divide your assets but plan and set forth how this should be done. Be careful about selling small parcels that reduce your acreage on tracts that minimally qualify.
Production Is Key
This is key…you are not required to do the commercial production! There are farmers in Johnston County that are willing to do that production for you and they will even pay you an annual lease for that privilege. Farmers will come to your property, plant their crops, manage their crops, and steward your land. Also, you should not assume that because the taxes on your property increased, that the farmer owes you more money. Farmland rental rates are established by supply and demand and the quality and accessibility of your land. If your land is in the center of a highly populated area where travel with farm equipment is difficult it is NOT going to command as much farm lease as a parcel in a rural community. However, the tax discount that you receive if you want to keep your land could necessitate that you befriend a farmer and implore him or her to tend your land.
If we can offer information about management of farmland or forestland in Johnston County, please feel free to reach out to one of the Extension Agents at the Johnston County Extension Center. For more help with qualification for PUV, the staff at the Johnston County Tax Office can help landowners file applications and qualify for the program.
Comments are closed.
So, while they raise taxes for the majority, fo farmers, “the schedule of values represents almost no change from the last tax valuation. This means enrolled landowners could conceivably pay even less tax on their land.” Seems right to me. #VoteOutIncumbents
Farm land has always had deferment taxes. Nothing new, preserving farm land “should be”an incentive and I’ll continue to take full advantage but, you probably have a problem with that, like everything else.
@You: Sorry, we’re subsiding you. Sounds a lot like the SOCIALISM that you snowflake libs love so much.
Now I know you have no idea what you’re talking about. The “idea” for socialism means, the abolition of private property. That means that I wouldn’t own farmland, everyone would own it. You think I want that? Get real, maybe educate yourself before commenting.
It would be helpful if the county could begin the year with an accurate projection of the coming year’s tax so that budgets could be tailored to ease the burden.
What about wetlands. A part of our farm is wetlands and can’t be built on.
“This is required such that each property owner is paying their fair share of important community services such as public schools, law enforcement, emergency management, public health, libraries and many more services that our local government provides.”
I disagree with the above statement that this is fair (or equitable). A person who spent $500,000 of after-income tax dollars to purchase their home receives the same (and likely less) community services than the person who paid $100,000 in after-income tax dollars for their home.
Do the math over a 30-year period. Retirement comes, inflation happens, and property taxes increased several times – and then its a struggle to pay those property taxes on the house the person spent 30 years paying on. The property tax system is broken. There must be a CAP put on property taxes. No way should someone be required to pay for the home TWICE!
Furthermore – if we don’t have children in public schools, where is our tax credit?
If we don’t use libraries, public health and other services – where is our tax credit?
Why are we required to pay for people who aren’t required to work, but are physically and mentally able?
This is NOT okay.
We need to reach out to our local politicians to fight for us. To fight for a revision.
I AGREE!
Very well said. The officials always state these policies as if they are entitled to everything they ask for and we just gave to suck it up. I have no kids, I don’t have a library and I’m tired of hearing that I’m an ingrate because I don’t want to pay for that I don’t use.
Thank God we have the DEEP STATE making the decisions in the TAX OFFICE and moving these revaluation up to every four years capturing these higher values and higher tax revenues into our school and local government coffers!!! The only way we will ever go back to revaluation every eight years will be if the housing market prices collapses and then we can hold onto those high values for years longer!!! JOHNSTON COUNTY TAX PAYERS support our local government, we have set up a plan following Wake County, Durham County and Mecklenburg County by doing revaluation earlier and capturing those jacked up home values four years earlier so we now can reap the extra tax money coming in to support our progressive LOCAL GOVERNMENT!!!
With the growth Johnston county has had in the last several years looks like the taxes should stay the same or be even lower. When these developers take a 100 acre farm and put 400 houses on it. The county will be receiving alot more taxes for each home that was built on that farm than what the farmer was paying for the 100 acre farm. Just a point I wanted to make.
Why again are only those who own their own property, homes, land, etc. to pay for all these services through state local and federal programs? Those on assisted housing or those who rent do not support these same programs . Why not have a state sales tax that everyone who buys a soda, food, gas, cars, homes, anything at all, will pay and those taxes should go towards supporting these service programs. The older population, many on very fixed income, cannot afford these outlandish tax increases! Do the right thing! Stop taxing the middle class homeowners as well! Fair taxes for all would be a sales tax increase!
It would be so bad if the monies was spent evenly throughout the county , but all county and school improvements go the the western part (Cleveland, Clayton) and here in meadow we just get “our fair share” of the bill
Mine was valued 100k more than three years ago on the market value. It’s no my fault that mor housing is being built around me increasing the value. I’m not making any more income than before. Not really fair for retired teachers 😔.
ALL TAXATION IS THEFT…..PERIOD!!!
So let me see if I’ve got this right… I buy 20 acres, take two acres out to build a house and farm out the rest. I build a house for less than 150k in 2014. In 2019 I get reappraisal at 243k. I go to complain and nothing happens. THATS after providing pictures and property map with utility easement visible. On other 18 acres there is a utility right away for a co-op and a transmission line for wake electric and 6 acres which floods after heavy rains and become wetlands and is Non buildable land. And did I mention trash dump on property where house was built. After getting updated appraisal on house for 383k on house and 189k on 18 acres for so called farmland, l find it pointless to go and challenge. You paid taxes on land when you purchased and paid taxes on house when you built and now you pay taxes on land you’ve already paid for. Guess they consider it a privilege to have land in Johnston County. 93.7 % upgrade is bulls**t!
What happens when leaving PUV program?
Tax , me to pieces , like the other states that where these ( so call growth came from). Moving to a state with lower taxes ! .
Thanks , to all the political board that seems to approve the growth , and not add that cost to the developer, whom makes the profit and leaves the growth deficiency to the property owners , even those who don’t have young ones in school .
You want a state with higher taxes , because you don’t manage your growth .
Your headed , for grid lock . For sure . Like every other blue city . Crying poor .
My 2 cents times a million .
Gotta tax out anyone that has land so they can build neighborhoods so they can get even more tax dollars on the 120 homes per 5 acres they do now. It’s all designed.
It’s all disgusting and theft. We’re witnessing the strip mining of the middle class right before our eyes. Widen the gap between the haves and have nots. Let’s see how far this greed gets you all when it really matters.
“Their fair share.” Did Obama write this Stalinist garbage?