Dukes County Property Tax Exemptions

Preferential treatment: The Farmland Valuation Advisory Commission establishes a range of values on a per-acre basis for each of several classifications of land in agricultural, horticultural, and forest land uses. These ranges are based on evidence of agricultural or horticultural use capability available from soil surveys and other pertinent evidence. Agricultural and horticultural land is taxed at the rate applicable to class 3 commercial property. At local option, such properties may be classified and taxed as class 2 open space property.. Penalty: A roll-back tax is assessed in the year the land no longer qualifies as forest, agricultural, or recreational land and is equal to the difference between the taxes paid and the taxes that would have been paid in the current and each of the 4 previous years had the land been valued without regard to use, subject to 5% simple interest. When land is converted to uses other than forest, agricultural, or recreational, it is subject to the higher conveyance or roll-back tax. A conveyance tax is applicable if the property is converted to or sold for uses other than forest, agricultural, or recreational within 10 years of the earliest date of uninterrupted use or when the land was acquired. The tax is applied to the total sale price (or fair market price) at the rate of 10% if conversion occurs in the first year, with the rate reduced by 1% for each year the property remains in agricultural, forest, or recreational use. No conveyance tax is imposed following the end of the 10th year of ownership. If the land is acquired by a nonprofit conservation organization and sold or converted to commercial, residential, or industrial use within 5 years after acquisition by the nonprofit conservation organization, the roll-back taxes will be assessed against the organization in the amount that would have been assessed at the time of acquisition.. Sources imported from Lincoln Institute agricultural treatment dataset.

Preferential treatment: Recreational land is valued based on use rather than current fair cash value, but the valuation cannot exceed 25% of its fair cash value. The rate of tax applicable to such recreational land shall be the rate applied to class 3 commercial property. At local option, properties classified as recreational land may be taxed as class 2 open space.. Penalty: When recreational land is converted to uses other than forest, agricultural, or recreational, it is subject to the higher of the conveyance or roll-back tax. A conveyance tax is applicable if the property is converted to or sold for uses other than forest, agricultural, or recreational within 10 years of the earliest date of uninterrupted use or when the land was acquired. The tax is applied to the total sale price (or fair market price) at a rate of 10% if conversion occurs in the first five years and 5% if converted in year 6 through year 10. No conveyance tax is imposed following the end of the 10th year of ownership. A roll-back tax is assessed in the year the land no longer qualifies as forest, agricultural, or recreational land and is equal to the difference between the taxes paid and the taxes that would have been paid in the current and each of the 4 previous years had the land been valued without regard to use, subject to 5% simple interest.. Sources imported from Lincoln Institute agricultural treatment dataset.