How is land enrolled in the federal Wetlands Reserve Program valued for Kansas property tax?

Plain-English summary

This 2000 memo from the Division of Property Valuation to all Kansas county appraisers explains how land enrolled in the federal Wetlands Reserve Program is valued for property tax.

The rule: "For the 2000 valuation year and after, all land subject to the federal wetlands reserve program shall be classified as native grassland. No other adjustments should be made to these program acres." This applies to both the Wetlands Reserve Program (WRP) and the emergency Wetlands Reserve Program (EWRP), and it comes from a 2000 legislative amendment to K.S.A. 79-1476 that "specifically spelled out the manner in which" this land is valued.

The memo explains why the law changed: the amendment "resulted from a State Board of Tax Appeals order that valued this type of land at market value with a property classification as 'All Other.'" Because that treatment put the land in the "waste" use type and could raise its value, "the legislature felt it a better remedy to call this 'land devoted to agriculture' and value it as native grass."

An important distinction: WRP land is not the same as land in the federal Conservation Reserve Program (CRP), "that continues to be classified as cultivated dry land."

The memo also gives appraisers practical steps for finding the affected parcels: the Natural Resources Conservation Service (NRCS) administers WRP and provided landowner names, locations, and acreage; most WRP contracts involve a recorded 30-year or permanent easement to the United States (USDA/NRCS), which can be found in the county register of deeds. One type — restoration WRP — may not require a recorded easement but "should be classified as native grassland just like the 30-year and permanent programs." An attached table lists the affected counties, showing 68 contracts covering about 7,701 acres through 1999.

What this means for you

County appraisers

Beginning with the 2000 valuation year, classify all WRP/EWRP acres as native grassland and value them that way under K.S.A. 79-1476, with no further adjustments to those acres. Use NRCS lists and recorded easements in the register of deeds to identify the parcels. Don't lump WRP land in with CRP land — CRP stays cultivated dry land. Treat restoration WRP the same as the 30-year and permanent programs.

Landowners with wetlands-reserve acres

If you enrolled land in the federal WRP or EWRP, that acreage is classified and valued as native grassland for Kansas property tax from 2000 onward — the result of a specific legislative fix after a State Board of Tax Appeals order had valued such land at market value as "All Other." CRP land is treated differently (cultivated dry land).

A note on scope

This memo describes the treatment enacted for the 2000 valuation year and after and cites the numbers current through 1999. It is administrative guidance interpreting K.S.A. 79-1476; confirm the current statute and Division of Property Valuation guidance for any present-day valuation.

Common questions

Q: How is federal Wetlands Reserve Program land valued in Kansas?
A: For the 2000 valuation year and after, it is classified as native grassland and valued that way under K.S.A. 79-1476, with no other adjustments to those program acres.

Q: Why did the valuation change?
A: A State Board of Tax Appeals order had valued the land at market value as "All Other" (a "waste" use type). The 2000 legislature amended K.S.A. 79-1476 to treat the land as "land devoted to agriculture" and value it as native grass instead.

Q: Is Conservation Reserve Program (CRP) land treated the same way?
A: No. The memo says CRP land continues to be classified as cultivated dry land, and warns not to confuse the two programs.

Q: What about "restoration" WRP that has no recorded easement?
A: It is classified as native grassland just like the 30-year and permanent WRP programs.

Citations and references

• K.S.A. 79-1476 — the agricultural land valuation statute; the 2000 amendment the memo describes provides that federal Wetlands Reserve Program land is classified as native grassland for the 2000 valuation year and after.
• State Board of Tax Appeals order — the order that had valued WRP land at market value as "All Other" property, prompting the legislative fix; the memo does not give a docket number.
• Federal Conservation Reserve Program (CRP) — distinguished from WRP; CRP land continues to be classified as cultivated dry land.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: MEMO-FedWetlandsReserveProgram

Original ruling text

Memorandum

Body:

DIVISION OF PROPERTY VALUATION

MEMORANDUM

TO: All County Appraisers

FROM: Mark S. Beck
Director, Division of Property Valuation

DATE: June 22, 2000

SUBJECT: Valuation of land in the Federal Wetlands Reserve Program

The 2000 legislature has passed a bill that has specifically spelled out the manner in which land in the federal wetlands reserve program (WRP) or emergency wetlands reserve program (EWRP) is valued under K.S.A. 79-1476. For the 2000 valuation year and after, all land subject to the federal wetlands reserve program shall be classified as native grassland. No other adjustments should be made to these program acres. This program is not to be confused with land in the federal conservation reserve program (CRP) that continues to be classified as cultivated dry land.

This addition to K.S.A. 79-1476 resulted from a State Board of Tax Appeals order that valued this type of land at market value with a property classification as “All Other.” While we do know of instances where the value will increase because this property is in the “waste” use type, the legislature felt it a better remedy to call this “land devoted to agriculture” and value it as native grass.

We have been able to obtain a current list of counties that have contracts and the approximate amount of acres under contract. The Natural Resources Conservation Service (NRCS) administers WRP and has provided the landowner names, location, date and approximate number of the acres enrolled. A hard copy of the list is being mailed to those counties with WRP acres (list of affected counties enclosed). The WRP is an active program and additions are being made annually. We will contact counties around the first of the year that have new WRP contracts.

Using the information from NRCS, contracts can be found in the county register of deeds office. Most of the contracts involve the purchase of a 30-year or permanent easement from the United States of America, United States Department of Agriculture, Natural Resources Conservation Service (formerly Soil Conservation Service), which would require a recorded instrument. A detailed map describing the easement area would also be included. There is one type of WRP that would not require the filing of an easement. It is the restoration WRP and is generally for a shorter time period. This restoration WRP should be classified as native grassland just like the 30-year and permanent programs.

Should you have any questions, do not hesitate to contact Zoe Gehr (785) 296-6719 or Roger Hamm (785) 296-8451.

June 22, 2000

Kansas Wetlands Reserve Program
Number of Contracts and Acres through 1999

Date Composed: 06/22/2000 Date Modified: 10/09/2001

Table 1

Table 2

Table 3