Deferred Tax Programs

Learn about present use value programs for land used for agricultural, horticultural or forestry purposes. Read more about the wildlife conservation and historical buildings programs. Get information on application deadlines and program requirements.

View the requirements set by NC General Statutes 105-277(series) pertaining to Present Use Value.

Requesting an Application and Application Deadline

To request an application for the Present Use Value program, the Wildlife Conservation program or the Historic Building program, please call our office at 919-856-5400.

The completed application must be filed with the Department of Tax Administration during the regular listing period, which is from January 1 through January 31 each year.

Late Applications

Late applications may be considered for good cause through the last day of the calendar year in which the tax is levied. A late application for deferment received after the calendar year ends will not be accepted and cannot be considered for approval or denial for any reason or circumstance.

Determination of good cause is made on a case-by-case basis, taking into account all pertinent facts and circumstances. Upon a showing of verifiable good cause by the applicant, an application for exemption or exclusion filed after the due date may be considered by the board of county commissioners.

Examples of good cause may include:

  • Physical or mental illness, infirmity or disability that would reasonably affect the taxpayer’s ability to apply timely
  • Death of the taxpayer or an immediate family member
  • Active duty military deployment
     

Taxpayer neglect, oversight or lack of awareness regarding due dates will not constitute good cause for a late exemption or exclusion application. The burden of proving both verifiable good cause for the late application and eligibility for the requested exemption or exclusion lies with the taxpayer.

Deferred Tax Program Details

Agricultural

Agricultural land means land that is a part of a farm unit actively engaged in the commercial production or growing of crops, plants or animals under a sound management program. Agricultural land includes woodland and wasteland. The requirements for an agricultural deferment are as follows:  

  • May consist of more than one tract of agricultural land, but at least one of the tracts must meet the requirements and each tract must be under a sound management program.
  • One tract must consist of at least 10 acres that are in actual production.
  • Must have produced an average gross income of at least $1,000 for the three years preceding January 1 of the year in which this benefit is claimed. Gross income includes income from the sale of the agricultural products produced from the land and any payments received under a governmental soil conservation or land retirement program.
  • If individually owned, the property must be the owner's residence or have been owned by the current owner or a relative of the current owner for four years preceding January 1 of the year in which this benefit is claimed.

Forestland

Forestland means land that is part of a forest unit that is actively engaged in the commercial growing of trees under a sound management program. Forestland includes wasteland that is part of the forest unit, but the wasteland included in the unit shall be appraised under the use value schedules as wasteland. The requirements for a Forestland deferment are as follows:

  • May consist of more than one tract of Forestland, but at least one of the tracts must meet the requirements and each tract must be under a sound management program.
  • One tract must consist of at least 20 acres that are in actual production and are not included in a farm unit.
  • If individually owned, the property must be the owner's residence or have been owned by the current owner or a relative of the current owner for four years preceding January 1 of the year in which the benefit is claimed.

Horticultural

Horticultural land means land that is a part of a horticultural unit that is actively engaged in the commercial production or growing of fruits or vegetables or nursery or floral products under a sound management program. Horticultural land includes woodland and wasteland that is a part of the horticultural unit, but the land included in the unit shall be appraised under the use value schedules as woodland or wasteland. The requirements for a horticultural deferment are as follows:

  • May consist of more than one tract of horticultural land, but at least one of the tracts must meet the requirements and each tract must be under a sound management program.
  • One tract must consist of at least 5 acres that are in actual production.
  • Must have produced an average gross income of at least $1,000 for the three years preceding January 1 of the year in which this benefit is claimed. Gross income includes income from the sale of the horticultural products produced from the land and any payments received under a governmental soil conservation or land retirement program.
  • If individually owned, the property must be the owner's residence or have been owned by the current owner or a relative of the current owner for four years preceding January 1 of the year in which the benefit is claimed.

Wildlife Conservation

A pond with green shrubs around it.

North Carolina General Statute (NCGS) 105-277.15 allows a property tax deferral program for landowners who manage their land for wildlife conservation purposes. 

To qualify for the program, the following conditions must be met:

  • The land must consist of at least 20 contiguous acres. 
  • The land must be owned by an individual, a family business entity, or a family trust and must have been owned by the same owner for the previous five years. Land owned by a business entity is not eligible for classification under this section if the business entity is a corporation whose shares are publicly traded or one of its members is a corporation whose shares are publicly traded. Exceptions to ownership apply.
  • The land must be managed under a written wildlife habitat conservation agreement with the North Carolina Wildlife Resources Commission that is in effect as of January 1 of the year for which the benefit of is claimed. The conservation agreement must provide for one or more of the following:
    • Protect an animal species that lives on the land and, as of January 1 of the year for which the benefit of this section is claimed, is on a North Carolina protected animal list published by the Commission under NCGS 113-333. Under this criteria, no more than 100 acres of an owner's land in a county may be classified for this program.
    • Conserve any of the following priority animal wildlife habitats: longleaf pine forest, early successional habitat, small wetland community, stream and riparian zone, rock outcrop or bat cave. Under this criteria, no more than 100 acres of an owner's land in a county may be classified for this program.
    • Actively and regularly use as a reserve for hunting, fishing, shooting, wildlife observation, or wildlife activities. The land must be inspected by a certified wildlife biologist at least every 5 years to ensure that activities are maintained to propagate a sustaining breeding, migrating, or wintering population of indigenous wild animals for human use, including food, medicine, or recreation. Under this criteria, no more than 800 acres of an owner's land in a county may be classified for this program.
  • Land classified under the Wildlife Conservation program will be appraised and assessed as if it were classified under NCGS 105-277.3 as agricultural land. The difference between the use value and the market value will be deferred in the same manner as agricultural land.
  • The difference between the taxes that are due on wildlife conservation land classified under this program and those that would be due if the land were taxed on the basis of its true value is a lien on the property. The difference in taxes will be carried forward as deferred taxes. The deferred taxes for the preceding three fiscal years are due and payable in accordance with NCGS 105‑277.1F when the land loses its eligibility for deferral as a result of a disqualifying event. A disqualifying event occurs when the property no longer qualifies as wildlife conservation land. 

A new application may be required under certain types of ownership changes or if there is a change in use.

Historic Building Program

A large historic home.

Real property designated as a historic structure or site by a local ordinance adopted pursuant to G.S. 160A-399.4 or designated as a historic landmark by a local ordinance adopted pursuant to G.S. 160A-400.5 is designated a special class of property under authority of Article V, Section 2(2) of the North Carolina Constitution

Property classified as historic is taxed uniformly in each local taxing unit on the basis of fifty percent (50%) of the true value of the property as determined pursuant to G.S. 105-285 and 105-286, or 105-287. After a property has been designated as historic property, the owner is required to submit a completed historic deferment application with the Department of Tax Administration. The deferred taxes will not become due unless or until the property loses its eligibility for the benefit of this classification. This could occur because of a change in an ordinance designation or a change in the property which causes its historical significance to be lost or substantially impaired.