The Land Use Assessment Program provides for the deferral of real estate taxes on property that meets certain agricultural, horticultural, forestry, or open-space criteria. This is not a discount, but a deferral of a portion of the land's taxes.

Land that is eligible for this program is valued and taxed based on its use versus being valued and taxed at fair market value. The deferred tax is the difference between the annual tax owed based on fair market value and the annual tax based on the use value. If the qualified use of the land continues, the deferral continues as well.

There are three categories of the Land Use program. Certain qualifications must be met within these categories to qualify for Land Use assessment. Listed below are the categories and their qualifications:

Agriculture—A minimum of five acres must be completely devoted to the bona fide production for sale of crops (hay, corn, wheat, etc.) and/or animals (cattle, goats, sheep, etc.) useful to man. Agricultural acreage will be assessed at $400 an acre for taxation.

*Animals that are “pets” do not qualify as being utilized for agricultural purposes. Animals must be generating income and benefiting the community.

*Crops utilized solely for the benefit of the property owner will not qualify for agricultural purposes. Crops must be sold, bartered to others in the community or utilized for animals that qualify for Land Use.

Horticulture—A minimum of five acres must be completely devoted to the bona fide production for sale of fruits of all kinds (grapes, nuts, berries, etc.) and/or nursery and floral products. Acreage categorized as Horticulture will be assessed at $400 an acre for taxation.

*The production and sale of Christmas Trees would qualify as Horticulture use.

Forestry—A minimum of 20 acres must be completely wooded and constitute as forest area. Forestry acreage will be assessed at $200 an acre for taxation.

Parcels must meet the acreage requirements for at least one category to qualify for Land Use. Any acreage not being used for a category of Land Use will be considered non-qualified.

*Example: John Doe owns eight acres. Five acres are cut for hay and three acres are wooded. The entire parcel will qualify because the minimum amount of acreage (five acres) is being met for agricultural use and the remainder of the parcel is being utilized in another category of Land Use (forestry).

Contiguous Parcels: Contiguous parcels under the same property ownership may qualify for the Land Use program if the contiguous parcels meet the minimum acreage requirements.

An application is required to be filed every other year, on even tax years (Regular Renewals). It is the responsibility of the taxpayer to ensure an application is filed with the Commissioner of the Revenue’s office. Bedford County begins accepting applications on September 1.

Listed below are the deadlines and fees for applying:

• Regular Renewals - Due by December 5 with no fee. Regular Renewals will be accepted until December 31st but a late filing fee of $50.00 will be charged after December 5.

• New Applications - Due by November 1 with a $15.00 application fee. New applications will be accepted until December 31 but a late filing fee of $50.00 will be charged in addition to the application fee if returned after the original deadline. The total fee will be $65.00 after November 1st. A new application MUST be filed to enter a property into the Land Use program for the first time and/or in the event of an acreage change due to a property split. A New Application can be filed any year, not only on even tax years.

There will be a mandatory revalidation fee of $15.00 for all participants in the Land Use program every six years. Late fees will be charged in addition to the revalidation fee if returned after the deadline. (2024, 2030, 2036, 2042, 2048, 2054, etc.)

                *Exceptions are made for due dates falling on a weekend.

The applicant must furnish upon request of the Commissioner of the Revenue proof of uses and production.

Change in use (constructing a dwelling, no longer in use, etc.), acreage (split off or subdivision), or zoning could result in a Roll Back tax. The Roll Back tax would be equal to the sum of the deferred tax due to participating in the Land Use program, plus interest. Roll Back taxes could only be charged on the five most recently completed tax years and the current tax year.

A change in use, acreage, or zoning is to be reported to the Commissioner of the Revenue within 60 days of said change. 

Parcels will be removed from the Land Use program if taxes for a previous year are not paid by June 1st of the current year. This will result in a supplemental bill for the current year based on the fair market value of the property.

*Example: John Doe is in the Land Use program for 2023. John Doe still owes delinquent taxes for 2022 on June 1, 2023. The Commissioner of the Revenue will remove John Doe from the Land Use program for 2023 and will send a supplemental bill based on the fair market value of the property