Agricultural Use-Value Property Tax Assessment: Estimation and Policy Issues

This paper provides an overview of the theory and methods used to implement use-value property tax assessment for agricultural land in the United States. After a critical review of the methods used by various states in their application of use-value statutes for agricultural land, the paper examines several policy issues related to the estimation and application of use-value assessment methods. Five state case studies are included, providing an overview of methods used in use-value assessment, and suggestions are provided regarding several ways in which use-value assessment methods need to be improved.