Statute: Indiana taxes agricultural land based on “true tax value.” IC 6-1.1-2, I.C. 6-1.1-4.13
Method of Assessment: Formula based on soil productivity for agriculture. Forest plantations shall be assessed at one dollar ($1) per acre for general property taxation purposes.
Application: Application required.
Plan Requirements: The Department of Natural Resources shall prescribe a management plan for each classified parcel. IC 6-1.1-6-16(b)
Penalties: If land that is classified as a forest plantation is withdrawn from the classification, the owner shall pay an amount equal to the sum of, (1) the total property taxes that, if it were not for the classification, would have been assessed on the land during the period of classification or the ten (10) year period immediately preceding the date on which the land is withdrawn from the classification, whichever is lesser, and (2) interest on the property taxes at the rate of ten percent simple interest per year, and (3) for land that was originally classified after June, 30, 2006, a penalty amount of one hundred dollars per withdrawal plus fifty dollars per acre, unless an amount is established by rule by the Natural Resources Commission. IC 6-1.1-6-24.