What is the level of assessment for a parcel in a preferential agricultural covenant?

The correct answer is based on the understanding of preferential agricultural covenants and their impact on property assessment levels. A preferential agricultural covenant is a legal agreement that allows landowners to use their property for agricultural purposes while benefiting from reduced property tax assessments. This often involves a lower level of assessment to encourage agricultural use and preserve farmland.

In many jurisdictions, land under a preferential agricultural covenant is assessed at a significantly lower level compared to typical residential or commercial properties, which can be 10%, 20%, or even higher. A 30% assessment level is often established to reflect the intent to support agricultural activities while still generating some revenue for local governments.

Understanding these percentages requires familiarity with local laws and policies regarding agricultural land use. The choice of 30% reflects a balanced approach that acknowledges the unique value and reduced market potential of agricultural land as compared to non-agricultural uses.