Purpose: This directive advises county assessors of the requirement for adjustments to agricultural and horticultural land values on sold parcels classified as non-agricultural that occur in the state sales file.

Procedure and Implementation: A land sale of non-agricultural property may contain agricultural and horticultural land as part of the sale. To calculate an assessment to sales ratio that represents the full value of the sale, the portion of the assessed value for the agricultural and horticultural land must be adjusted to 100% of market value in the state sales file, as defined in Chapter 12 – Sales File Regulations. This adjustment is necessary to ensure the assessed value of the parcel is an appropriate comparison to the sales price. This is accomplished by multiplying the assessed value portion of the agricultural and horticultural land by 133%. The total of the adjusted land value attributable to agricultural and horticultural land, plus the valuation of the non-agricultural land within the sold parcel, will be the assessed value of the land as reported in the state sales file.

The adjustment to these sales in the state sales file must be coordinated with your field liaison to ensure correct reporting for the annual Reports and Opinions of the Property Tax Administrator. The field liaisons will assist in identifying these sale records.