Williamson Act grazing valuations to increase

Farm Bureau and Tulare County Cattlemen members met with Tulare County Assessor Roland Hill in late August to discuss grazing rents, and an increase that is expected to reach the property tax bills this fall that will impact Williamson Act parcels, and the taxes they pay on grazing properties.

Hill came to the Bureau on Aug. 31, to share the news, and was apologetic for the increase happening, but said state law required that the rents be adjusted to current market levels. Surveys were sent out by APN ownership records, and respondents provided data which supported the increases.

Hill provided some history on this process, and stated that from 19892008 there was no collection or analysis of data on grazing land rents. From 2008 forward there were indications that grazing rents had increased, and rents used to value Williamson Act land were raised slightly, but not to indicated market levels. Unfortunately this delay causes the County to make a larger increase in the tax valuations at this time.

This data was evaluated again in 2014, and increases were indicated, but due to the unknown effects of the drought, assessments were not increased. Using the most recent rental data available in 2017 the assessor’s office made the difficult decision to align Williamson Act values with market rents. The most impacted acreage will be the lower carrying capacity grazing land, for example AU80 will see the biggest increase from $4 per acre to $10.50 per acre, bringing that new assessment on that value to around $1.70 per acre of assessed value.

On other carrying capacities such as AU10, the increase is far less approximating with rents increasing from $16 to $18 per acre.

State law requires that Williamson Act parcels be assessed on a restricted income approach, if the property is not under contract it would be subject to Proposition 13 values, and never would a Williamson Act parcel tax exceed the taxes on a Prop 13 basis, it caps out at a 90 percent value against compared Prop 13 values.

Commodity values and rents are adjusted every 4-5 years cyclically by the county assessor’s office based on the questionnaires sent out and returned by property owners. If you believe that your assessed value exceeds the current market value of your property, you may submit an appeal to the Board of Supervisors by Nov. 30, each year for reconsideration. You are also encouraged to first discuss your parcel tax bill with the Ag Appraisal division of the County Assessor’s office and you may contact them at 636-5100.

To file an appeal visit http://tularecounty. ca.gov/clerkoftheboard/ index.cfm/assessmentappeals.