County addresses SGMA effects on property values
There’s the definite possibility the Sustainable Ground Management Act could have a negative impact on farmers’ property values.
So the question is can farmers affected by the SGMA receive relief when it comes to the amount of property taxes they pay. The answer is maybe.
The Tulare County Assessor/clerk-recorder’s Office has addressed this issue, stating farmers affected by the SGMA could possibly receive relief when it comes to the property taxes they pay.
The SGMA has placed a requirement in which the pumping of groundwater must be reduced. So the SGMA is obviously impacting the use of agricultural land and in turn is influencing property values.
But as the county assessor has stated: “Quantifying the effects of these changes is an ongoing challenge.”
But the county assessor also added “It is the responsibility of the county assessor to reflect the changing market in their annual determination of fair and accurate assessments.”
Basically with the SGMA restricting the amount of groundwater farmers can pump for irrigation, that impacts the value of the property. So is that farmer eligible for a reduction in property taxes?
Basically if the market value of the property has declined below the assessed value as determined by the county assessor, then tax relief is available. Farmers who believe the market value of their property is now below the assessed value as determined by the county assessor can request the county assessor to do another assessment of the property.
The county assessor also states farmers should provide any information and market data they’re willing to share so the office can provide a fair and accurate assessment. Farmers should provide the gross taxable value along with what they believe the market value is to the county assessor if they’re going to ask the assessor to do a review.
The gross taxable value can be found in the
upper right corner of the tax bill. Those asking for a review should also provide sales of comparable properties or MLS listings for sale.
The county assessor is also offering the chance for a review to be done even for Williamson Act properties. The Williamson Act allows city and county governments to enter into contracts with landowners that restrict specific parcels of land for agricultural or open space use. The Williamson Act provides those who enter into such agreements with a significant reduction in property taxes.
Landowners must apply for Williamson Act contracts which are approved by city councils or county boards.
The county assessor is offering a chance for those who have Williamson Act properties to have a review done if they believe the Williamson Act assessment exceeds their property’s market value.
The reality is there will be farmers who will plow over, fallow their land, and not use it as a result of the SGMA. The assessor’s office stated accurate valuations of fallowed land will largely depend ons ales of similar properties.
The county assessor stated it’s closely monitoring recent sales of agricultural land to determine the SGMA’S impact. But the office also stated it’s seeking input from local farmers to help it determine property tax values.
“We encourage the farming community to share with our office information on ag property sales, especially when sale prices appear to be affected by SGMA requirements. Recent sales of ag land as well as recently negotiated land rents would help use evaluate the impact of SGMA,” the office stated.
The office added sales of fallowed land that have been bought primarily for their water shares would be especially helpful.
“We are also seeking rent information and expenses as they relate to water shares or groundwater in various parts of the county,” the office stated.
Growers who remove trees during 2022 could see a reduction in their property tax bill in the summer of 2023.
Growers who would like their property values to be updated based on removal of trees should submit a Real Property Alterations form to the county assessor by April 1.
As far as if SGMA restrictions could impact the assessment of Williamson Act properties the county assessor stated it will continue to review those restrictions in determining assessments for Williamson Act properties.
Those who have questions can call the county assessor, 559-636-5100.