Marion County Property Tax Exemptions

Preferential treatment: Fair market value for agricultural purposes is based on the productive earning power considering soil capability determined by the capitalization of typical cash rents or typical net income from timber and non-timber crops. Agricultural real property is assessed at 4% of fair market value for owners or lessees who do not have more than one class of stock, more than ten shareholders, a nonresident alien as a shareholder, or a shareholder who is not an individual. Agricultural land is assessed at 6% of fair market value for owners who do not meet all of the aforementioned criteria. Manufacturing property is assessed at 10.5% and commercial property at 6%.. Penalty: Property owners who discontinue using the land for agricultural purposes must pay rollback taxes for 5 years equal to the difference between the taxes paid under the preferential assessment and the taxes that otherwise would have been due. If the assessor is not notified of a change in property use within 6 months, a penalty of 10% and interest at the rate of 0.5% a month must be paid on the difference between the amount that was paid and the amount that should have been paid, but not less than $30 or more than the current year's taxes. In addition, a penalty of 100% of the tax paid plus 0.5% interest per month is imposed, but in no case less than $30 or more than the current year's taxes. When agricultural land is changed to residential or commercial development that was previously designated as "green space for conservation" or "open space", rollback taxes are calculated based on the value of "green space for conservation" or "open space". If the platted "green space for conservation" or "open space" is converted to another use in 5 property tax years or less, the owner is liable for rollback taxes as if the land had never been designated as such.. Sources imported from Lincoln Institute agricultural treatment dataset.