13
In addition, the parcel may not be entitled to a 100% qualified agricultural property exemption
due to a commercial or industrial use on the parcel or a residence on the parcel that is not a
related building, etc. If the classification change affects the parcel’s eligibility for the qualified
agricultural property exemption, the assessor must change the assessment roll accordingly.
If the STC changes a parcel’s classification to agricultural, the assessor must make that
change on the assessment roll for the year covered by the determination. The assessor must
also consider if, and to what extent, the parcel’s new agricultural classification affects the
parcel’s eligibility for the qualified agricultural property exemption for the year covered by the
Commission’s determination. The change may have no effect at all if the parcel was already
receiving this exemption or the homeowner’s principal residence exemption.
In addition, the parcel may not be entitled to a 100% qualified agricultural property exemption
due to a commercial or industrial use on the parcel or a residence on the parcel that is not a
related building, etc. If the classification change affects the parcel’s eligibility for the qualified
agricultural property exemption, the assessor must change the assessment roll accordingly.
The Treasurer must then issue a refund of any overpayment of taxes for the year covered by
the determination.
If an assessor determination or an appeal of a parcel’s classification results in a change of
classification from agricultural to residential or commercial, etc., that change can cause the
parcel to lose the qualified agricultural property exemption. Since agricultural classification
makes a parcel eligible for the qualified agricultural property exemption, the change to
something other than agricultural could eliminate the parcel’s eligibility to receive the qualified
agricultural property exemption for the year of the classification change.
Example: A 40-acre parcel has, 15 acres are planted in corn or soybeans with 25 acres a
combination of swamp and woods, are not tillable, and are not devoted to an agricultural use
and often used for hunting purposes. The assessor changed the classification from
agricultural to residential. The property owner appealed the classification to the March Board
of Review and then on to the State Tax Commission. The Commission determined the
proper classification was residential. As a result of this classification change, the parcel is not
entitled to the qualified agricultural property exemption; it is not classified agricultural and is
not devoted primarily to an agricultural use, only 15 of the 40 acres, or 37.5 percent, are
devoted to an agricultural use.
Withdrawals and Rescissions
Once a parcel is granted the qualified agricultural property exemption, the exemption remains
in place until the end of the year in which the property is no longer qualified agricultural
property (except in withdrawal and denial situations). Ownership is not relevant in
determining whether a parcel continues to receive the qualified agricultural property
exemption.