For properties enrolled in Rural Preserve, taxes are calculated on both the estimated market value (higher value based on the highest and best use) and the agricultural value (lower value). Taxes are calculated on both values, but paid on the lower value each year. The difference between the tax calculated on the higher and lower values is deferred under Rural Preserve until the property is sold or no longer qualifies for the Rural Preserve Program.
When the property is sold, transferred, or no longer qualifies, the deferred tax for the current payable year and the two prior years must be paid to the county.