Tuesday, March 05, 2013
It's no secret that
farmland values have gone through some pretty big changes in the
last couple of decades. The current Farmland Assessment Law hasn't
kept up, though. That's why Illinois Farm Bureau (IFB) supports an
amendment to the law proposed by the Illinois Department of Revenue
(IDOR). According to IFB, this change will maintain the fair and
equitable assessment of farmland.
In 1986, a +/- 10% cap was put on farmland value. Limiting the cap
to 10% created a problem over time. Today, the certified value of
lower-producing soils doesn't reflect the actual productive value
of the soil.
The current assessment suggests that "a higher (productive) soil
produces 40 times better than lower (productive) soils, but the
actual data in Illinois doesn't support that," said Brenda
Matherly, Illinois Farm Bureau Assistant Director of Local
Under HB 2651, sponsored by Rep. Frank Mautino (D-Spring Valley),
the farmland assessment process would phase in changes to equalized
assessed value by soil productivity index (PI). Those changes would
not exceed 10% of the certified assessed value of the state's
median soil PI, which is 111.
This change would allow 2014 certified values of farmland to
increase up to 10% of the PI 111's 2013 certified value - $184.83.
Therefore, an increase of 10% of this certified value would be
$18.48. This would mean a maximum increase in all PI values of
Under this proposed amendment, the certified value changes would
happen gradually. Matherly estimated it would take 15 to 17 years
before the median values are integrated through the system.
Matherly warned if the farmland assessment law isn't changed, the
system's integrity could come into question, possibly threatening
the entire law.
IFB supports HB 2651 to help maintain the fair and equitable
assessment of farmland. In fact, Illinois farm Bureau made it one
legislative priorities for 2013:
Support legislation maintaining
the integrity of the farmland assessment law and its ability to
value farmland in an appropriate way for agriculture.
How does IFB know how to handle tough issues? Easy. Your
grassroots policy leads the way!
Farmers like you set IFB #125 Property
Tax Administration which says in part:
We will seek uniform and
equitable implementation of the Farmland Assessment Law, in
cooperation with county Farm Bureaus.
For More Info Contact:
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