How is farmland assessed?
The preferential farmland assessment applies to tracts of farm property that have met the definition of a farm for the previous two years. To be a farm, a tract’s sole use must be farm as defined under 35 ILCS (Illinois Complied Statutes) 200/1-60 (formerly Chapter 120, par. 482). The law does not apply to parcels that are primarily used for residential purposes. Farmland in Illinois is assessed for property tax purposes on the basis of its agricultural economic value. This value, commonly referred to as use-value, is based upon land use under average level management, relative productivity of soils, and the present worth of the net income accruing to the land from farm production. Farm buildings are assessed at one-third of their contributory value to the farm and are not subject to state equalization factors. Farm home sites and dwellings are to be assessed like non- farmland at 33 1/3 percent of market value and are subject to state equalization factors.
