So What is the Williamson Act?
The Williamson Act, formally known as the
"California Land Conservation Act" and commonly referred to as Ag
Preserve was enacted in 1965 to encourage the preservation of
agricultural lands. Under the Williamson Act, an owner of
agricultural land may enter into a contract with the county if the
landowner agrees to restrict use of the land to the production of
commercial crops for a term of not less than 10 years. In return,
the landowner is taxed on the capitalization of the income from the
land, and not on the Proposition 13 value.
How does the Williamson Act
affect Real Estate?
The Williamson Act can have significant
impact on value because it controls the land usage and taxation for the
duration of the contract. Land under the Williamson Act must
remain an allowable agricultural usage for a period of 10 years after a
request to remove the property from it's contract. In simplistic terms
it is a trade between tax expense versus development rights. Since
the contract is tied to the property it flows with the property and
affects rights and taxation of future owners.
For Additional Details:
California Department of Conservation Q&A
San Luis Obispo Information and Application
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