What is the assessed value for bona fide agricultural property for ad valorem tax purposes?

The assessed value for bona fide agricultural property for ad valorem tax purposes is determined using a specific percentage of its value as outlined by state guidelines. In the case of agricultural properties, the appropriate valuation method typically allows for a favorable assessment to encourage farming and agricultural practices.

The reason that 75 percent of its value is the correct answer reflects the state's policy to support agricultural activities by keeping taxes manageable. This assessed value can mean that, rather than being taxed at full market value, agricultural land receives a reduced assessment, which recognizes its lower current use value as opposed to potential market value if developed for other uses.

Understanding this valuation practice is essential for appraisers and property owners in the agricultural sector, as it directly influences property taxes and encourages the preservation of agricultural land. Other percentages, such as 100 percent or lower valuations, may apply to different property classifications or types, but the specific context of bona fide agricultural property clearly aligns with the 75 percent assessment.