§ 105-277.7. Use-Value Advisory Board.
§ 105‑277.7. Use‑ValueAdvisory Board.
(a) Creation andMembership. The Use‑Value Advisory Board is established under thesupervision of the Agricultural Extension Service of North Carolina StateUniversity. The Director of the Agricultural Extension Service of NorthCarolina State University shall serve as the chair of the Board. The Boardshall consist of the following additional members, to serve ex officio:
(1) A representative ofthe Department of Agriculture and Consumer Services, designated by theCommissioner of Agriculture.
(2) A representative ofthe Division of Forest Resources of the Department of Environment and NaturalResources, designated by the Director of that Division.
(3) A representative ofthe Agricultural Extension Service at North Carolina Agricultural and TechnicalState University, designated by the Director of the Extension Service.
(4) A representative ofthe North Carolina Farm Bureau Federation, Inc., designated by the President ofthe Bureau.
(5) A representative ofthe North Carolina Association of Assessing Officers, designated by thePresident of the Association.
(6) The Director of theProperty Tax Division of the North Carolina Department of Revenue or theDirector's designee.
(7) A representative ofthe North Carolina Association of County Commissioners, designated by thePresident of the Association.
(8) A representative ofthe North Carolina Forestry Association, designated by the President of theAssociation.
(b) Staff. TheAgricultural Extension Service at North Carolina State University must provideclerical assistance to the Board.
(c) Duties. The Boardmust annually submit to the Department of Revenue a recommended use‑valuemanual. In developing the manual, the Board may consult with federal and Stateagencies as needed. The manual must contain all of the following:
(1) The estimated cashrental rates for agricultural lands and horticultural lands for the variousclasses of soils found in the State. The rental rates must recognize theproductivity levels by class of soil or geographic area, and the crop as eitheragricultural or horticultural. The rental rates must be based on the rentalvalue of the land to be used for agricultural or horticultural purposes whenthose uses are presumed to be the highest and best use of the land. Therecommended rental rates may be established from individual county studies orfrom contracts with federal or State agencies as needed.
(2) The recommended netincome ranges for forestland furnished to the Board by the Forestry Section ofthe North Carolina Cooperative Extension Service. These net income ranges maybe based on up to six classes of land within each Major Land Resource Areadesignated by the United States Soil Conservation Service. In developing theseranges, the Forestry Section must consider the soil productivity and indicatortree species or stand type, the average stand establishment and annualmanagement costs, the average rotation length and timber yield, and the averagetimber stumpage prices.
(3) The capitalizationrates adopted by the Board prior to February 1 for use in capitalizing incomesinto values. The capitalization rate for forestland shall be nine percent (9%).The capitalization rate for agricultural land and horticultural land must be noless than six percent (6%) and no more than seven percent (7%). The incomesmust be in the form of cash rents for agricultural lands and horticulturallands and net incomes for forestlands.
(4) The value per acreadopted by the Board for the best agricultural land. The value may not exceedone thousand two hundred dollars ($1,200).
(5) Recommendationsconcerning any changes to the capitalization rate for agricultural land andhorticultural land and to the maximum value per acre for the best agriculturalland and horticultural land based on a calculation to be determined by theBoard. The Board shall annually report these recommendations to the RevenueLaws Study Committee and to the President Pro Tempore of the Senate and theSpeaker of the House of Representatives.
(6) Recommendationsconcerning requirements for horticultural land used to produce evergreensintended for use as Christmas trees when requested to do so by the Department. (1973, c. 709, s. 1; 1975, c.746, s. 11; 1985, c. 628, s. 2; 1989, c. 727, s. 218(44); c. 736, s. 2; 1997‑261,s. 109; 1997‑443, s. 11A.119(a); 2002‑184, s. 4; 2005‑313, s.5; 2005‑386, s. 1.3.)