_ WHEN RECORDED MAIL TO: APPLICATION FOR AGRICULTURAL USE ASSESSMENT THIS PROPERTY MAY BE SUBJECT TO LIENS FOR UNDETERMINED AMOUNTS Pursuant to Nevada Revised Statues, Chapter 361A, I/We, (Please print or type the name of each owner of record or his representative) Hereby make application to granted, on the below described agricultural land, and assessment based upon the agricultural use of this land. I/We understand that if this application is approved, it will be recorded and become a public record. This agricultural land consists of acres, is located in Elko County, Nevada, and is described as: Assessor s Parcel # Legal Description: I/We have owned the land since. I/We certify that the gross income from agricultural Use of the land during the preceding calendar year was $5,000 or more. Yes No If yes, attach proof of income. I/We have used it for agricultural purposes since _. The agricultural use of the land is: (i.e., grazing, pasture, cultivated, dairy, etc.) Was the property previously assessed as agricultural? If so, when? I/We hereby certify that the foregoing information submitted is true, accurate and complete to the best of my/our knowledge. I/We understand that if this application is approved, this property may be subject to liens for undetermined amounts. I/We understand that if any portion of this land is converted to a higher use, it is our responsibility to notify the Assessor in writing within 30 days. Each owner of record or his authorized representative must sign. Representative must indicate for whom he is signing, in what capacity and under what authority. Revised May 5, 2010 1
APN: Revised May 5, 2010 2
APN: Office of: ELKO COUNTY ASSESSOR NOTICE OF ATTACHMENT OF TAX LIEN ON AGRICULTURAL REAL PROPERTY IN ELKO COUNTY YOU WILL PLEASE TAKE NOTICE the deferred tax on agricultural real property will be calculated in the manner provided in NRS 361A 265 and NRS 361A 280, only when all or part of the property is converted to a higher use. YOU WILL PLEASE TAKE FURTHER NOTICE that deferred taxes and any penalties thereon will annually attach as a lien against all qualified agricultural real property in Elko County and that person(s) desiring information regarding potential deferred tax liens should contact the Elko County Assessor s Office. I have read and understand the above. d this day of, 20. ELKO COUNTY ASSESSOR Revised May 5, 2010 3
WHEN RECORDED MAIL TO: FOR USE BY THE COUNTY ASSESSOR OR DEPT OF TAXATION Application Received Property Inspected Income Records Inspected Written Notice of Approval or Denial Sent to Applicant Application forwarded to Dept of Taxation Dept of Taxation returned application Reasons for approval or denial and other pertinent information: Signature of Assessor or Dept. employee processing application Title Revised May 5, 2010 4
Does your property qualify for Agricultural Use? Below you will find some questions to ask yourself regarding your property s status. If you are able to answer YES ro most of these questions, your property MAY have the ability to qualify for the agricultural deferred tax. Is the property currently devoted to agricultural pursuits as a business venture for profit? Has the business been devoted to agricultural pursuits for 3 consecutive years of more? Is this property agriculturally used in conjunction with other property in your ownership and used as a business venture for profit? Does your agricultural business venture file a Federal Income Tax return? Do you own livestock? Will you be able to generate a gross income of $5,000 or more every year from the sale of the livestock? Will 1/2 or more of the livestock s feed be produced on the property? Does the property cultivate, harvest and sell crops grossing $5,000 or more annually? Will you file a Federal Income Tax return for income derived from the sale of the crops from this property? Is the property leased to a business of agricultural pursuit? Is the lessee utilizing the property as an addition to their agricultural business? Does the property produce crops or sustain livestock generating income of over $5,000 annually? Do you file an IRS Schedule E for the rental income? Does your lessee file an IRS Schedule F for income generated by your property? Is the property range land? If so, does the range sustain enough stock water to support livestock? Important: If agricultural use is granted to your property, it will become subject to the agricultural conversion deferred tax. This tax is calculated if and when the ag property is removed from ag status. The tax covers the difference between what you paid under the ag use deferred tax status and what you would have paid if the property was not in the deferred standing. This a combined calculation for each tax year the property was held in ag status up too 7 years, whichever is less Revised May 5, 2010 5
Agriculturally deferred property FAQ S Q: If I ve just purchased this property, how can I prove that the property has been devoted to agricultural pursuits grossing over $5,000 per year for the past 3 years? A: If you have purchased an entire agricultural operation, including livestock and machinery, from an entity that held the property in agricultural use prior to the sale, you may file an application and provide the County Assessor with proof that you intend to continue agricultural production on this property. However, if you purchase a portion of an agricultural operation you will need to provide proof that the portion of ground you obtained did and will continue to support $5,000 gross annual income on its own. This could take up to 3 years. Types of proof accepted are: Tax returns, Profit and Loss Statements, Audited Financials, Balance Sheets and/or a lease. Q: What if I am able to provide the assessor with an annual lease from a qualified Ag Operator? A: The Assessor will scrutinize all leases. The lessee must be an entity that currently fall in the ag-use status and is capable of producing crops generating $5,000 or more per year from your property or $5,000 in livestock sales and proof that the property produces 1/2 or more of the feed required. We will request a copy of the entire lease. The lease must be notarized and accompanied with IRS schedules F and E or the like, as income verification. You must be able to provide proof of agricultural business and income for 3 consecutive years. In addition to the requirements listed above, we would like written confirmation of the crops produced on the property, the months they were harvested and tons harvested. If the property supported livestock we would like written confirmation as to the type of livestock, the count of livestock, and the months the livestock used the property. The Assessor s office has created a form for this purpose. Q: What if my property is NOT able to qualify for Agricultural Use Assessment? A: If you cannot provide the County Assessor with an Application of Agricultural Use and the $5,000 annual proof of income, the agricultural discount will cease and the property will be assessed at 35% of fair market value as stated in NRS 361.227. The property may also be subject to an Agricultural Deferred Conversion Tax. Q: What is an Agricultural Deferred Conversion Tax? A: Also known as, Deferred Tax, or Recapture Tax. NRS 361A.155. This statute requires the County Assessor to determine the full-cash value of said property and bill the difference of what paid under the agricultural use assessment and what should have been paid had the property been assessed at full-cash. This is to be compiled over the past 7 tax years. Q: How can I prove to the County Assessor that the property has a gross income of $5,000or more per year? A: The best proof is your Federal Income Tax returns for the previous 3 years showing a gross income or loss of $5,000 or more from an agriculturally based business originating from the property applying for the ag-status. Q: What if this property is an additional property to my already existing operation in another County of State? A: If you have purchased a piece of property in Elko County to use in conjunction with other property in another County or State and it is not contiguous to your existing agricultural venture, you will need to provide proof your ag business will generate $5,000 or more gross income for the total operation and that the operation will be utilizing the property annually and that the property situated here in Elko County will profit a gross income of $5,000 on its own. Proof such as shipping records, and a declaration of the property s field tonnage may be requested and may be required in years following approval. Q: How can my property qualify for Agricultural use? A: In order for any property in the State of Nevada to qualify for agricultural status, the property must meet the guidelines set in NRS 361A.030. In short this is; the property must, for 3 consecutive years, be devoted to agricultural enterprises that will generate an annual gross income of $5,000 of more. Links to more information on this topic: http://tax.state.nv.us http://leg.state.nv.us/law1.cfm http://elkocountynv.net Revised May 5, 2010 6