It is declared that it is in
the public interest to:
(1) Encourage the preservation
of farm land in order to maintain a readily available source of food and farm products
close to the metropolitan areas of the State, to conserve the State's natural
resources and to provide for the welfare and happiness of the inhabitants of
the State;
(2) Prevent the forced
conversion of farm land and forest land to more intensive uses as a result of
economic pressures caused by the assessment thereof for purposes of property
taxation at values incompatible with their preservation as such farm land and
forest land; and
(3) That the necessity of the
enactment of the provisions of this section is a matter of legislative
determination.
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§ 8329. Valuation of agricultural,
horticultural and forest land use.
For general property tax
purposes including school tax purposes, the value of land which is actively
devoted to agricultural, horticultural or forest use and which has been so
devoted for at least the 2 successive years immediately preceding the tax year
in issue, shall, on application of the owner, and approval thereof as provided
in this section, be that value which such lands have for agricultural,
horticultural or forest use; provided, that in the case of school taxes where
such land is located in a public school district situated in 2 counties, the
value of such land shall be that value arrived at by multiplying the value
determined hereunder by the lower of the 2 general percentage rates of
assessment in force in such counties for the tax year in issue.
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§ 8330. Agricultural
use land.
Land shall be deemed to be in
agricultural use when devoted to the production for sale of plants and animals
useful to man, including but not limited to: Forages and sod crops; grains and
feed crops; dairy animals and dairy products; poultry and poultry products;
livestock, including beef cattle, sheep, swine, horses, ponies, mules or goats,
including the breeding and grazing of any or all of such animals; bees and
apiary products; fur animals; trees and forest products; or when devoted to and
meeting the requirements and qualifications for payments or other compensation
pursuant to a soil conservation program under an agreement with an agency of
the federal government.
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§ 8331. Horticultural
use land.
Land shall be deemed to be in
horticultural use when devoted to the production for sale of fruits of all
kinds, including grapes, nuts and berries; vegetables; nursery, floral,
ornamental and greenhouse products; or when devoted to and meeting the
requirements and qualifications for payments or other compensation pursuant to
a soil conservation program under an agreement with an agency of the federal
government.
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Land shall be deemed to be in
forest use when devoted to tree growth in such quantity and so spaced and
maintained as to constitute in the opinion of the State Forester a forest area.
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§ 8333. Criteria for
land use.
Land shall be deemed to be
actively devoted to agricultural, horticultural or forestry use when (i) not
less than 10 acres are in such use, and the gross sales of agricultural,
horticultural or forestry products produced thereon together with any
agricultural program payments and sales of commodities received under
government entitlement programs have averaged at least $1,000 per year within a
2-year period of time immediately preceding the tax year in issue, or there is
clear evidence of anticipated yearly gross sales and such payments amounting to
at least $1,000 per year, within a 2-year period of time, or (ii) less than 10
acres are in such use and the gross sales of agricultural, horticultural or
forestry products produced thereon together with any agricultural program
payments and sales of commodities received under government entitlement
programs shall have averaged at least $10,000 per year within a 2-year period
of time immediately preceding the tax year in issue, or there is clear evidence
of anticipated yearly gross sales and such payments amounting to at least
$10,000 per year within a 2-year period of time. In computing such anticipated
yearly gross sales for land under 10 acres in such use, the maximum amount
computed from future sales of forestry products shall be not more than $2,000
annually. In applying these criteria, and in determining whether the minimum
acreage requirements are met, all contiguous parcels of land held by identical
owners in identical proportions of ownership and in identical legal form of title, shall be considered as a single unit.
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§ 8334. Eligibility
for valuation under §§ 8330-8337.
Land which is actively devoted
to agricultural, horticultural or forest use shall be eligible for valuation,
assessment and taxation as provided in this section when it meets the following
qualifications:
(1) It has been so devoted for
at least the 2 successive years immediately preceding the tax year for which
valuation under this section is requested;
(2) The area of such land (i)
is not less than 10 acres in such use, and the gross sales of agricultural,
horticultural or forestry products produced thereon together with any
agricultural program payments and sales of commodities received under
government entitlement programs have averaged at least $1,000 per year within a
2-year period of time immediately preceding the tax year in issue, or there is
clear evidence of anticipated yearly gross sales and such payments amounting to
at least $1,000 per year, within a 2-year period of time, or (ii) is less than
10 acres in such use and the gross sales of agricultural, horticultural or
forestry products produced thereon together with any agricultural program
payments and sales of commodities received under government entitlement
programs shall have averaged at least $10,000 per year within a 2-year period
of time immediately preceding the tax year in issue, or there is clear evidence
of anticipated yearly gross sales and such payments amounting to at least
$10,000 per year within a 2-year period of time. In computing such anticipated
yearly gross sales for land under 10 acres in such use, the maximum amount
computed from future sales of forestry products shall not be more than $2,000
annually. In applying these criteria, and in determining whether the minimum
acreage requirements are met, all contiguous parcels of land held by identical
owners in identical proportions of ownership and in identical legal form of title, shall be considered as a single unit.
(3) Application by the owner
of such land for valuation under this section is submitted on or before
February 1 of the year immediately preceding the tax year to the assessor of
the taxing district in which such land is situated on the form prescribed by
the State Farmland Evaluation Advisory Committee together with evidence in
writing of the required sales, payments and anticipated sales and payments.
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§ 8335. Assessment
procedures.
(a) The assessor in valuing
land which qualifies as land actively devoted to agricultural, horticultural or
forestry use under the tests prescribed by this section, and as to which the owner
thereof has made timely application for valuation, assessment and taxation
under this section for the tax year in issue, shall consider only those indicia
of value of such land as established by the State Farmland Evaluation Advisory
Committee.
(b) In determining the total
area of land actively devoted to agricultural, horticultural or forest use
there shall be included the area of all land under barns, sheds, silos, cribs,
greenhouses and like structures, lakes, dams, ponds, streams, irrigation ditches
and like facilities, but land under, and such additional land as may be
actually used in connection with the farmhouse, shall be excluded in
determining such total area.
(c) All structures which are
located on land in agricultural, horticultural or forest use and the farmhouse
and the land on which the farmhouse is located, together with the additional
land used in connection therewith, shall be valued, assessed and taxed by the
same standards, methods and procedures as other taxable structures and other
land in the taxing district.
(d) When land in agricultural
use and being valued, assessed and taxed under the provisions of this chapter,
is applied to a use other than agriculture, it shall be subject to additional
taxes, hereinafter referred to as roll-back taxes, in an amount equal to the
difference, if any, between the taxes paid or payable on the basis of the
valuation and the assessment authorized hereunder and the taxes that would have
been paid or payable had the land been valued, assessed and taxed as other land
in the taxing district, in the current tax year immediately preceding, in which
the land was valued, assessed and taxed hereunder.
(1) If in the tax year in
which a change in use of land occurs the land was not valued, assessed and taxed
under this chapter, then such land shall be subject to roll-back taxes in the
following manner. If the change of the use of land occurs prior to
(2) In determining the amounts
of the roll-back taxes chargeable on land which has undergone a change in use,
the assessor shall for each of the roll-back tax years involved, ascertain:
a. The full and fair value of
such land under the valuation standard applicable to other land in the taxing
district;
b. The amount of the additional
assessment on the land for the particular tax year by deducting the amount of
the actual assessment on the land for that year from the amount of the land
assessment determined by the assessing authority; and
c. The amount of the roll-back
tax for that tax year by multiplying the amount of the additional assessment
determined under paragraph b. of this subdivision by the general property tax
rate of the taxing district applicable for that tax year.
(3) Roll-back taxes as
provided herein shall become payable when the land is applied to a use other
than agricultural, horticultural or forestry. The terms "applied to a use
other than agriculture" and "change in use" for purposes of this
subsection shall include any of the following:
a. The actual use of the land
for an activity other than agricultural, horticultural or forestry;
b. The rezoning of the land to
a nonagricultural category;
c. The approval of a site plan
or issuance of a certificate of occupancy which allows for a nonagricultural
usage; and
d. The loss of eligibility for
valuation under §§ 8330-8337 of this title.
(4) Notwithstanding anything
in this chapter to the contrary, whenever land in agricultural use is applied
to a use other than agriculture, and such land is but a portion of a larger
tract of land, the remainder of which continues in agricultural use, roll-back
taxes as provided herein shall become payable only with respect to the portion
of the land which is applied to a use other than agricultural, and the
remainder of the land which continues in agricultural use shall remain eligible
for valuation under §§ 8330-8337 of this title, provided the criteria for land
use set forth under § 8333 continue to be satisfied. The owner of the land
which continues in agricultural use shall not be required to apply for
eligibility for valuation, and the burden for establishing ineligibility shall
rest with the assessing authority.
(5) Roll-back taxes hereunder
shall be paid within 90 days of their due date, and payment thereafter shall
include a penalty of 6 percent of the amount due for the 1st month thereafter,
and one percent of the amount due for each consecutive month until payment is
made. The amount due for roll-back tax shall become a lien on the land which was
subject to a change in use or applied to a use other than agriculture as of the
due date. The school tax component of the roll-back tax shall be paid to the
respective school districts which established the tax rates applicable to the
lands through a payment first to the appropriate county receiver of taxes,
treasurer or director of finance, who collects school taxes. The balance of the
roll-back tax shall, when collected by the appropriate county receiver of
taxes, treasurer or director of finance, be paid to the Delaware Agricultural
Lands Preservation Foundation; provided, however, that seven and a half percent
of such balance shall be withheld and paid to the county as a charge for
administration. For purposes of this paragraph, the due date shall be the
earlier of the date following conversion under paragraph (3) of this subsection
which is established by the respective counties for annual taxes or the date
indicated by the county in any special billing for roll-back taxes.
(6) When land in agricultural
use and being valued, assessed and taxed under the provisions of this chapter,
is acquired for public use by State agencies, whether by condemnation, gift or
purchase, and is then applied to a use other than agriculture, that portion of
the land which is applied to such other use shall be subject to a payment by
the agency in lieu of roll-back taxes, to be paid to the Delaware Agricultural
Lands Preservation Foundation. The amount of this payment in lieu shall be
determined as if it were the roll-back tax chargeable under this section for
the tax year in which the land was acquired by the agency, or the tax year in
which the land is applied to such other use, whichever is greater, after first
deducting the school tax component of the roll-back tax chargeable for that
year. This payment shall be made directly by the agency to the Foundation,
after obtaining the assessment information from the appropriate county receiver
of taxes, treasurer or director of finance, and shall not be subject to any
charge for administration by the county. In all other respects, the land so
acquired for such public use shall not be assessed or charged for roll-back or
other property taxes by any county, school district or other political
subdivision.
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(a) Eligibility of land for
valuation, assessment and taxation under this section shall be determined for
each tax year separately. Application shall be submitted by the owner to the
assessor of the taxing district in which such land is situated on or before
February 1 of the year immediately preceding the tax year for which such
valuation, assessment and taxation are sought; provided however, that unless
the eligibility of land under this section changes, those applications which
have met the provisions to qualify under this chapter shall be automatically
renewed without the owner having to apply annually. With respect to new
applications, eligibility of the land for valuation, assessment and taxation under
this section shall be conditioned upon advance execution by the landowner of a
certification, in recordable form, as provided by the Delaware Agricultural
Lands Preservation Foundation, which certification indicates that a roll-back
tax is due and payable to the school districts and the Foundation under the
provisions of § 8335(d) of this title at such time that the land is subjected
to a change in use or applied to a use other than agricultural, horticultural
or forestry, as such terms are defined, and that a failure to pay the roll-back
tax when due results in the imposition of a lien on the land for nonpayment.
(b)(1) If the eligibility of
land under this section changes the owner shall on or before February 1, of the
following year in which the eligibility of the land changes, notify the
assessing authority in the taxing district, in writing, of the change in land
use.
(2) Any owner who fails to
properly notify the assessing authority in the tax district of the change in
land use shall be assessed a penalty for such failure in an amount of 20% of
the rollback taxes recoverable against the property, which penalty shall be
collected by the taxing district.
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§ 8337. State Farmland Evaluation
Advisory Committee.
(a) There is created a State
Farmland Evaluation Advisory Committee, consisting of 3 members. One member
shall be the Dean of the College of Agricultural Sciences of the University of
Delaware; 1 member shall be appointed by the Governor from a list of 3 eligible
citizens, which list shall be supplied the Governor by the Executive Committee
of the Delaware State Grange; and 1 member shall be appointed by the Governor
from a list of 3 eligible citizens, which list shall be supplied the Governor
by the Executive Committee of the Delaware Farm Bureau. No more than 2 members
of the Committee shall be of the same political party. Each member shall be a
citizen of this State and shall be appointed for a term of 3 years beginning on
the 1st day of July in the year of appointment. Vacancies for any cause other
than the expiration of term shall be filled by the Governor for the unexpired
term.
(b) The Committee shall meet
from time to time on the call of the Dean of the
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