Agricultural Real Property Application

This application must be completed in full and the owners of the property or the owners' agent must apply for the four percent legal assessment ratio before the first penalty date (January 15th) for the payment of taxes for the tax year for which the owner first claims eligibility for hte four percent assessment ratio.  No further application(s) are necessary from the current owner while the property for which the initial application was made continues to meet the eligibility requirements.  If a change in owership or use occurs, the owner who had qualified for the special assessment ratio allowed by this seection shall notify the assessor of the change in classification within six months of the change.  Another application is required by the new owner to qualify for future yeaqrs at the four percent ratio allowed by this section. (12-43-220.(c) and (d) of hte South Carolina Cod of Laws).  

Please complete and submit this application, in its entirity as soon as possible to avoid any unnecessary delays in processing your application.

SECTION 12-43-220.

Definition of Agricultural Real Property:

Agricultural real property shall mean any tract of real property which is used to raise, harvest, or store crops or feed, breed, or manage livestock, or to produce plants, trees, fowl, or animals useful to man, including the preparation of the products raised thereon for man's use and disposed of by marketing or other means.  It includes but is not limited to such real property used for agriculture, graing, horticulture, forestry, dairying, and mariculture.  In the event at least 50% of a real property tract shall qualify as "agricultural real property", the entire tract shall be so classified, provided no other business for profit is being operated thereon.  The term "agricultural real property" shall not include any property used as the residence of the owner or others in that the taxation of such property is specifically provided for in Section 12-43-230 of the South Carolina Code of Laws and Department of Revenue Regulation 117-1780.2

Qualification Requirements:

Agriculural real property which is actually used for suvch purposes and meets certain sie or income restrictions, not including, however, owners or lesses who are individuals or partnerships and for certain corporations which do not:

1. Have more than 10 Shareholders
2. Have as a shareholder a person (other than an estate) who is not an individual.
3. Have a non-resident alien as a shareholder
4. Have more than one class of stock

Timberland: Tracts must be five acres or more.  Tract of timberland must be devoted to growing trees for commercial use.  Tracts of timberland less than five acres qualify if any of the following conditions are met:

1. Contiguous to a qualifying tract that meets the minimum acreage requirement.
2. Under same management system as a qualifying tract that meets the minimum acreage requirement.
3. Owned in combination with non-timberland tracts that qualify as agricultural real property.

Non-Timberland: (Cropland) Tracts must be ten acres or more.  Tracts of non-timberland less than ten acres qualify if any of the following are met:

1. If contiguous tracts with identical ownership meet the minimum acreage requirement when added together.
2. If a person making application earned at least $1,000 gross farm income in at least three of hte past five taxable years proceeding the year of the application.
3. if a person making an initial application for hte first five years earned at least $1,000 gross farm income in at least three or the first five years.  If the new owner fails to meet the income requirement in the five yeare period, the tract is not considered agricultural real property and is subject to the rollback tax.
4. If the property has been owned by the current owner or an immediate family member of the current owner for at least ten years ending january 1, 1994 and hte property was classified as agricultural real property for tax year 1994.

The following uses of real proeprty do not qualify as agricultural:

1. Recreation
2. Hunting Clubs
3. Fishing Clubs
4. Vacant Land (land lying dormant)
5. Any similar use

Rollback Provision

If in the tax year in which a change in use of hte real property was not valued, assessed, and taxed under this article, then the real property is subject to roll-back taxes for each of hte three tax years immediately preceding in which the real property was valued, assessed and taxed hereunder.

Section 12-43-220(d)(3) of the South Carolina Code of Laws requires that the applicant sign th following statement:

UNDER PENALTY OF PERJURY, I ceritfy that the property which is the subject of this application meets the requirements to qualify as agricultural reqal property as of January 1st of the current tax year; or I certify thathte property which is the subject of this application meets the requirements to qualify as agricultural real property and for the special assessment ratio for certain agricultural real property as of January 1st of the current tax year.  

It is unlawful for a person to knowingly and willfully make a false statement on this application required pursuant ot section 12-43-220(d)(3) to a county assessor for the classification of property as agricultural real proerty or the .  A person violating the provisions of this section is guilty of a misdemeanor and upon conviction, must be fined not more than $200.  In making this application, I CERTIFY the property, which is the subjecgt of this application, meets the requirements to qualify as agricultural real property as of January 1st of the current tax year.  I also authorize the Assessor to verify farm income with the Departmet of Revenue and Taxation, the Internal Revenue Service, or the Agricultural Stabilization and Conservation Service.  I understand that if the use is changed on all or any portion of this tract after it has been placed in an agricultural classification, that portion which is changed will be subject to a rollback tax lien.