In the Appraisal Department, we get many questions regarding agricultural land exemptions. According to Idaho Statute 63-604, for property tax purposes, agricultural land is land that is actively devoted to producing field crops; or used to produce nursery stock; or is used by the owner for the grazing of livestock to be sold as part of a for-profit enterprise; or is leased by the owner to a lessee for grazing purposes; or is in a cropland retirement program or rotation program.
To qualify for appraisal, assessment, and taxation as agricultural property, the parcel should be at least 5 contiguous acres, although a smaller parcel may qualify if it can be established to meet the requirements that it agriculturally produces for sale or home consumption the equivalent of fifteen percent or more of the owner’s or lessee’s annual gross income; or agriculturally produces gross revenues in the immediately preceding year of one thousand dollars ($1,000) or more. Contiguous land can also qualify under certain circumstances.
An interesting question we often get is, “Does my land qualify for agriculture since I use it to pasture my horse?” The statute directly addresses this issue. It states: Land utilized for the grazing of a horse or other animals kept primarily for personal use or pleasure rather than as part of a bona fide for-profit enterprise shall not be considered to be land actively devoted to agriculture. So, the answer would be no.
Another question we hear is: How will it affect the agricultural status if the land is platted or zoned residential? The statute says that as long as the land continues to be used for agricultural practices, it will continue to be appraised, assessed, and taxed as agricultural land.
If you have other questions, feel free to drop by the office. We are here to help.
