North Carolina General Statutes provide for property in Agricultural, Forestry or Horticultural use which meets certain requirements to be assessed at values based on that use rather than at the full market value. The difference between taxes billed in the program and what would have been billed if not in the program are carried as deferred taxes.
If property is removed from the program, either voluntarily or by disqualification, deferred taxes for the current and 3 previous years become due and payable, with interest when applicable, as if they had been billed in their respective years.
Application is required for any property to be included in the program, and any time there is a change in ownership. Properties in the program are periodically audited to assure continued compliance, and failure to respond to audit requests will result in disqualification and billing of deferred taxes.