Form AV-5, Application for Agriculture, Horticulture, and Forestry Present-Use Value Assessment, is the application a North Carolina landowner files to have farm, horticultural or forest land assessed at its present-use value under G.S. 105-277.2 through G.S. 105-277.7. It is one of the Durham County property tax forms published by Durham County Tax Administration, and it goes to the county tax assessor where the land is located. On this page you can fill out the form online on FillingPDF and download or print the completed PDF; the official PDF is published by the county.
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What is AV-5?
Form AV-5, Application for Agriculture, Horticulture, and Forestry Present-Use Value Assessment, is the application owners use to ask the county tax assessor for present-use value (PUV) classification of agricultural, horticultural or forestland under G.S. 105-277.2 through G.S. 105-277.7.
Durham County Tax Administration explains on its Land Use page that present-use value is the value of land in its current use as agricultural land, horticultural land or forestland, based solely on its ability to produce income and assuming an average level of sound management. The program is voluntary: the owner must comply with certain rules in exchange for preferential tax treatment. The county notes that it may also be called PUV, Land Use, Farm Use or a "tax break".
The form is built in five parts: Part 1, Ownership; Part 2, Agriculture and Horticulture; Part 3, Forestry; Part 4, Affirmation; and Part 5, Continued Use. Which parts you complete depends on the type of use and on whether you are applying for continued use of an existing classification. The first page also asks for the owner's details and a parcel-by-parcel acreage breakdown.
Do not send this application to the North Carolina Department of Revenue: the form directs it to the county tax assessor where the property is located. The revision printed on the form is Web-Fill 3-18.
Who needs to file AV-5?
Owners of land used for agriculture (which includes aquaculture), horticulture or forestry who want present-use value assessment file Form AV-5. Check the boxes on page 1 for every use that applies.
Durham County's Land Use page describes the program standards the application is measured against:
- Agricultural land: one or more tracts with at least one tract of at least 10 acres, in actual production under a sound management program, with an average gross income of at least $1,000 per year for the preceding 3 years produced directly from the land.
- Horticultural land: at least one tract of at least 5 acres, with the same production and income standards.
- Forest land: at least one tract of at least 20 acres, included in a written comprehensive sound management plan as of January 1.
- Individually owned agricultural or horticultural land must be the owner's primary residence, or have been owned by the owner (or a relative) for the 4 years before January 1 of the benefit year.
The form tells you which parts to complete: agriculture or horticulture with less than 20 acres of woodland, Parts 1, 2 and 4; with more than 20 acres of woodland, Parts 1, 2, 3 and 4; forestry, Parts 1, 3 and 4. Applicants seeking continued use of an existing classification also complete Part 5. Individuals, married couples, business entities, trusts and tenants in common are all covered by Part 1, and all tenants in common must sign. Ask the tax assessor if you are unsure which parts apply.
When to file AV-5
File Form AV-5 during the regular listing period, within 30 days of a notice of a change in valuation, or within 60 days of a transfer of the land. Those are the three windows printed in the form's instructions.
Timing also matters for eligibility. The form states that the property must be actively engaged in the commercial growing of trees under a sound management program as of January 1 of the year for which the application is made, and Part 1 asks who owned the land if the applicant has owned it less than four full years on January 1. An application for continued use under Part 5 is for property that is already in present-use value and is being transferred. The form sets no processing time; the tax assessor may contact you for more information after reviewing the application.
Documents you need
- Breakdown of business entities or trusts, if any direct shareholder, member, partner or trust beneficiary is not an individual, carried down to the individual level, describing those individuals' farming activities.
- A copy of the Part 1 page for each business entity or trust that is a tenant in common, labeled with its name, completing only the business entity section or only the trust section for that tenant.
- For a horticultural tract growing Christmas trees: a copy of the written management plan if one has been prepared.
- For Christmas trees without a written plan: a full explanation of the operation giving the year each tract was planted, gross income from each tract, site management practices, trees per acre and expected harvest date for each tract.
- A complete copy of the forest management plan with Part 3 (forestry applications, and agriculture or horticulture applications with more than 20 acres of woodland), including a map or aerial photograph locating the property and each stand.
- Durham County's Land Use page lists these compliance requirements for agricultural land: proof of income for the previous three years, IRS Schedule F to verify farm income, and a production report of acres per product. Ask the tax assessor what to enclose with the application.
How to fill out AV-5
Enter county, tax year and owner details
At the top of page 1, enter the county, the tax year, the full name of each owner, the owner's mailing address, and your home, work and cell telephone numbers.
Check the type of use
Under This application is for, check all that apply: AGRICULTURE (includes aquaculture), HORTICULTURE or FORESTRY.
List each parcel and its acreage
For every tax parcel, enter the Parcel ID and the acres in each category: open land in production, open land not in production, woodland, wasteland, CRP land, home site and other land (describe in Comments). Enter the total acres for the parcel.
Answer the other-counties question
Check Yes or No for whether you own other present-use value property within 50 miles of this property. If Yes, list each county and Parcel ID.
Complete Part 1 ownership details
Enter the date you became the owner. If you owned the land less than four full years on January 1, give the previous owner's name and how you are related. Answer whether an applicant resided on the property on January 1 and whether any acres are leased to a farmer, with acres, farmer's name and phone.
Choose the legal form of ownership
Select one of a through e: one individual, husband and wife, business entity, trust or tenants in common. List members, beneficiaries or tenants with their farming activities or ownership percentages (rounded to the nearest 0.1%) and answer the Yes/No questions under that choice.
Complete Part 2 for agriculture or horticulture
For each parcel, enter the product, acres and gross income from sales for one, two and three years ago, including livestock, poultry and aquatic species. Enter government program payments with the program name in the Product column, and leave out rental income.
Answer the Christmas tree and aquatic questions
If the application covers Christmas trees, check Yes or No for a written management plan and attach the plan or an explanation. For aquatic species farming, enter the pounds produced for commercial sale in each of the last three years.
Complete Part 3 for forestry
Attach a complete copy of your forest management plan and check who prepared it: N.C. Division of Forest Resources, Consulting Forester, Owner or Other. The plan should contain the five key elements listed on page 4.
Complete Part 5 for continued use
Only if the property is already in present-use value and you want immediate eligibility under the Continued Use exception, read the four certifications, including acceptance of full liability for existing deferred taxes, and have each owner sign and date.
Review, sign and download the PDF
Sign and date the Part 4 Affirmation; all tenants in common must sign. Check that every required part and attachment is complete, then download or print the completed PDF from FillingPDF and submit it as described under How to submit.
How to submit AV-5
Form AV-5 is submitted to the county tax assessor of the county where the property is located. The form names no other channel.
- County tax assessor: the form points to the North Carolina county assessors list at https://www.ncdor.gov/documents/north-carolina-county-assessors-list for each county's address and telephone number. Durham County Tax Administration publishes the form and describes the program on its Land Use page.
- Do not send it to the North Carolina Department of Revenue. The form says in capital letters not to submit the application there.
- Attachments: include every attachment your situation requires, such as an entity or trust breakdown, a Christmas tree management plan or explanation, or a forest management plan, as listed under required documents.
- Signatures: the owner signs Part 4 and, for continued use, Part 5; all tenants in common must sign.
The form has a block marked For Office Use Only for the assessor's approval or denial and reason for denial; leave it blank. For questions about which parts to complete, contact the tax assessor's office. FillingPDF lets you fill out and download the PDF; submission follows the channels above.
Common mistakes to avoid
- Sending the application to the North Carolina Department of Revenue instead of the county tax assessor where the property is located.
- Filing outside the printed windows: the regular listing period, 30 days from a notice of a change in valuation, or 60 days from a transfer of the land.
- Completing the wrong parts, such as skipping Part 3 for an agriculture or horticulture application with more than 20 acres of woodland, or completing Part 2 for a forestry-only application.
- Including rental income in Part 2; the form says income must come from the sale of the product, not from renting the land.
- Leaving out the breakdown of business entities or trusts when a shareholder, member, partner or beneficiary is not an individual.
- Signing Part 4 without every tenant in common; all tenants in common must sign.
- Omitting the forest management plan from a forestry application, or the written plan or explanation for a Christmas tree tract.
- Skipping Part 5 when applying for continued use of an existing present-use value classification, or not accepting liability for existing deferred taxes.
- Answering No to the question about other counties when you own other present-use value property within 50 miles of this property.
Frequently asked questions
What is Form AV-5 used for?
Form AV-5 is the North Carolina application for agriculture, horticulture and forestry present-use value assessment under G.S. 105-277.2 through G.S. 105-277.7. Owners file it with the county tax assessor to have qualifying land assessed on its current use rather than its market value.
What is the Durham County property tax present-use value application?
It is Form AV-5. Durham County Tax Administration describes present-use value on its Land Use page as a voluntary program that gives preferential tax treatment to agricultural, horticultural or forest land in exchange for following program rules, and publishes the AV-5 PDF.
When is Form AV-5 due?
File it during the regular listing period, within 30 days of a notice of a change in valuation, or within 60 days of a transfer of the land. The form prints these three windows in its instructions and sets no other deadline.
Where do I submit Form AV-5?
Submit it to the county tax assessor where the property is located. The form links to the North Carolina county assessors list for addresses and phone numbers. Do not send it to the North Carolina Department of Revenue.
Which parts of Form AV-5 do I need to complete?
Agriculture or horticulture with less than 20 acres of woodland: Parts 1, 2 and 4. With more than 20 acres of woodland: Parts 1, 2, 3 and 4. Forestry: Parts 1, 3 and 4. Add Part 5 for continued use. The assessor can confirm which apply.
What do I attach to Form AV-5?
It depends on the application. Forestry needs a complete forest management plan. Christmas tree tracts need a written plan or an explanation. Business entity or trust owners need a breakdown down to the individual level. The form asks for no attachment from every applicant.
What is the Continued Use section in Part 5?
Part 5 is for property already in present-use value when you apply for immediate eligibility under the Continued Use exception. You certify you will continue the current use and accept full liability for existing deferred taxes. Without that acceptance, deferred taxes are typically due in the grantor's name.
Can I fill out Form AV-5 online?
Yes. You can fill out the PDF online on FillingPDF and download or print it. FillingPDF is an independent service and does not file the application; you deliver it to the county tax assessor yourself.
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