Nevada Agricultural Use Assessment Application Instructions (LGS-F018)

# preamble

APN (Assessor's Parcel Number(s)): _________________________________ _________________________________ _________________________________ Return this application to: County Assessor's Office: Agricultural Use Assessment Application NRS 361A.110

# IF MORE SPACE IS NEEDED, PLEASE ATTACH ADDITIONAL SHEETS TO THIS APPLICATION

Owner(s) of Record: ____________________________________________________________________ Mailing Address: _______________________________________________________________________ City/State/Zip: _________________________________________________________________________ 1. What is the total acreage of the parcel(s)? _________ 2. What is the total acreage of the land devoted to agricultural use? __________ 3. Has the land been devoted exclusively to agricultural use for at least 3 consecutive years immediately preceding this application? Yes No Unknown / New Owner 4. Was this property previously assessed as agricultural? Yes No If yes, when was it originally assessed as agricultural? ____________ 5. Was the gross income from agricultural pursuits of the land during the preceding calendar year $5,000 or more? Yes No Unknown / New Owner Return this application to the County Assessor's Office at the address shown above no later than June 1st. If this application is approved, it will be recorded and become a public record.

6. Provide documentation of the minimum gross income of $5,000 from agricultural pursuits. This may include, without limitation: • Leases • Receipts • Rent paid • Account balance sheets • Profit, and loss statements • Audited financial statements • Federal income tax returns (Schedule F or Schedule C). • Additional documentation may be requested by the county assessor or the Department. 7. Is this property operated by the owner as part of an existing agricultural operation where other parcels are designated as agricultural? Yes No 8. Is this parcel currently leased to another person for agricultural purposes? Yes No If yes, please provide a copy of the lease agreement. • Are at least 7 acres of the parcel devoted to agricultural purposes? Yes No • Is this parcel contiguous to other agricultural real property owned by the lessee? Yes No 9. Describe all the uses of the land for which you are requesting an agricultural designation, such as agricultural, residential, commercial, or industrial use. For example, if you farm and live on this parcel, the use would be both agricultural and residential. In addition, please describe the agricultural operation such as raising crops, livestock, poultry, fur-bearing animals, bees, aquatic agriculture, hydroponic gardens. ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ 10. Are there any water rights or a water source associated with the parcel(s)? Yes No If yes, please explain: ______________________________________________________________________________________ ___________________________________________________________________________________ __ 11. If there is any information you wish to provide, that might be pertinent to assist in processing this application, you may include it here. ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________

The undersigned hereby certify the foregoing information submitted is true, accurate and complete to the best of (my) (our) knowledge. (I) (We) understand if this application is approved, this property may be subject to liens for undetermined amounts. (I) (We) understand that if any portion of this land is converted to a higher use, it is our responsibility to notify the assessor in writing within 30 days of the conversion. EACH OWNER OF RECORD OR HIS AUTHORIZED REPRESENTATIVE MUST SIGN BELOW . IF SIGNED BY A REPRESENTATIVE, THE REPRESENTATIVE MUST INDICATE FOR WHOM HE IS SIGNING, HIS CAPACITY, AND UNDER WHAT AUTHORITY HE IS SIGNING. PLEASE TYPE THE NAME UNDER EACH SIGNATURE. _________________________________________ _______________________________________________ Signature of Applicant or Agent Capacity (Owner, Representative, or Lessee) ___________________________________________ ___________________________ _____________ Type or Print Name Authority (i.e. Power of Attorney) Date ___________________________________________ ____________________ ______________________ Address/City/State/Zip Phone Number Email Address _________________________________________________________________________________________ Signature of Applicant or Agent Capacity (Owner, Representative, or Lessee) ________________________________________ _______________________________ ______________ Type or Print Name Authority (i.e. Power of Attorney) Date ________________________________________ _____________________ _____________________ Address/City/State/Zip Phone Number Email Address ___________________________________________ ______________________________________________ Signature of Applicant or Agent Capacity (Owner, Representative, or Lessee) ________________________________________ _______________________________ ______________ Type or Print Name Authority (i.e. Power of Attorney) Date ________________________________________ _____________________ _____________________ Address/City/State/Zip Phone Number Email Address

___________________________________________ ______________________________________________ Signature of Applicant or Agent Capacity (Owner, Representative, or Lessee) ________________________________________ _______________________________ ______________ Type or Print Name Authority (i.e. Power of Attorney) Date ________________________________________ _____________________ _____________________ Address/City/State/Zip Phone Number Email Address ___________________________________________ ______________________________________________ Signature of Applicant or Agent Capacity (Owner, Representative, or Lessee) ________________________________________ _______________________________ ______________ Type or Print Name Authority (i.e. Power of Attorney) Date ________________________________________ _____________________ _____________________ Address/City/State/Zip Phone Number Email Address Attach Additional Signature Pages to Application as Necessary

# FOR USE BY THE COUNTY ASSESSOR OR DEPARTMENT OF TAXATION

Application Received Date Initial Property Inspected Date Initial Income Records Inspected Date Initial Written Notice of Approval or Denial Sent to Applicant Date Initial Application forwarded to Department of Taxation Date Initial Department of Taxation returned application Date Initial Reasons of Approval or Denial and Other Pertinent Comments: Signature of Official Processing Application Title Date

Information and Instructions For Agricultural Use Assessment Application Please Read Carefully Determinations on applications for parcels of twenty (20) acres or more will be made by the County Assessor. Determinations on applications for parcels of less than twenty (20) acres will be made by the Department of Taxation. A separate app lication is required for each county in which property is located. Criteria used to qualify agricultural use assessment applications: 1.) The land has been devoted exclusively to agricultural use for at least three consecutive years immediately preceding the assessment date. See NAC Chapter 361A for further information about agricultural use. 2.) Agricultural use must produce a minimum gross income of $5,000 from agricultural pursuits during the immediately preceding calendar year. See NAC Chapter 361A for further information about the employment of real property as a business venture for profit. 3.) If the agricultural use is the feeding, breeding, management or sale of livestock, poultry, or the produce thereof, the land must be of sufficient size and capacity to produce more than one-half of the feed required during that year for the agricultural pursuit. 4.) When the owner leases the land, the minimum acreage in production must be 7 acres or the lessee must own land which is contiguous to the subject property. NRS 361A.020. The agricultural use assessment designation will be removed when the property is converted to a higher use. Conversion may be evidenced by: 1.) A physical alteration of the surface of the property enabling it to be used for a higher use; 2.) The recording of a final map or parcel map creating one or more parcels not intended for agricultural use; 3.) A change in zoning to a higher use made at the request of the owner; 4.) Any use other than agricultural use.

Failure to provide all required and/or requested information could result in application denial. Once an application is made and approved, it is not necessary to file again unless there is a change in ownership or conversion to a higher use of any portion of the land. However, the county ass essor or the Department of Taxation may request a new application with supporting evidence in order to determine continuous use. Incomplete applications or applications with insufficient documentation may result in the cancellation of the agricultural assessment. If an agricultural assessment is approved, the assessment will be based on the agricultural use of the land rather than on its full cash value, which is typically a higher assessment. Residential use areas will be assessed at full cash value. If the property converts in whole or part to a higher use, the owner will become liable for deferred taxes based upon the difference between the agricultural use value and the full cash value for a period not to exceed seven years. It is the property owner's responsibility to notify the assessor in writing within 30 days if any portion of the land is converted to a higher use. Failure to promptly notify the assessor of a use change will result in a 20% penalty of the total accumulated deferred tax for each year the owner failed to provide notice. Upon conversion, the deferred taxes will be calculated in the manner provided in NRS 361A.265 and NRS 361A.280. Deferred taxes and any penalties thereon will annually attach as a lien against all qualified agricultural real property within the County. The county Assessor does not record an annual statement of deferred tax liens on agricultural real property. Persons desiring information about potential deferred tax liens should contact the County Assessor's Office. See NAC Chapter 361A for additional details. The Nevada Administrative Code (NAC) may be accessed on the internet at the following address: http://leg.state.nv.us/NAC/

# GENERAL PROVISIONS

Statutory references related to criteria used to qualify agricultural use assessment applications NRS 361A.010 Definitions. As used in this chapter, the terms defined in NRS 361A.020 to 361A.065, inclusive, have the meanings ascribed to them in those sections except where the context otherwise requires. NRS 361A.020 "Agricultural real property" defined. 1. "Agricultural real property" means: (a) Land devoted exclusively for at least 3 consecutive years immediately preceding the assessment date to agricultural use. (b) Land leased by the owner to another person for agricultural use and composed of any lot or parcel which: (1) Includes at least 7 acres of land devoted to accepted agricultural practices; or (2) Is contiguous to other agricultural real property owned by the lessee. (c) Land covered by a residence or necessary to support the residence if it is part of a qualified agricultural parcel. 2. The term does not include any land with respect to which the owner has granted and has outstanding any lease or option to buy the surface rights for other than agricultural use, except leases for the exploration of geothermal resources as defined in NRS 361.027, mineral resources or other subsurface resources, or options to purchase such resources, if such exploration does not interfere with the agricultural use of the land. 3. As used in this section, "accepted agricultural practices" means a mode of operation that is common to farms or ranches of a similar nature, necessary for the operation of such farms or ranches to obtain a profit in money and customarily utilized in conjunction with agricultural use. NRS 361A.030 "Agricultural use" defined. 1. "Agricultural use" means the current employment of real property as a business venture for profit, which business produced a minimum gross income of $5,000 from agricultural pursuits during the immediately preceding calendar year by: (a) Raising, harvesting and selling crops, fruit, flowers, timber and other products of the soil; (b) Feeding, breeding, management and sale of livestock, poultry, or the produce thereof, if the real property used therefor is owned or leased by the operator and is of sufficient size and capacity to produce more than one -half of the feed required during that year for the agricultural pursuit; (c) Operating a feed lot consisting of at least 50 head of cattle or an equivalent number of animal units of sheep or hogs, for t he production of food; (d) Raising furbearing animals or bees; (e) Dairying and the sale of dairy products; or (f) Any other use determined by the Department to constitute agricultural use if such use is verified by the Department.  The term includes every process and step necessary and incident to the preparation and storage of the products raised on such property for human or animal consumption or for marketing except actual market locations. 2. As used in this section, "current employment" of real property in agricultural use includes: (a) Land lying fallow for 1 year as a normal and regular requirement of good agricultural husbandry; (b) Land planted in orchards or other perennials prior to maturity; and (c) Land leased or otherwise made available for use by an agricultural association formed pursuant to chapter 547 of NRS. To review NRS 361A in its entirety, please visit the State of Nevada website at: https://www.leg.state.nv.us/NRS/NRS-361A.html