The value of property is usually determined by the fair market value, or the price that a willing and informed buyer and seller would agree to under ordinary circumstances.
The Louisiana Constitution provides that bona fide agricultural, horticulture, and timber lands can be assessed for tax purposes at 10% of their use value instead of their fair market value.
Use value of bona fide agricultural, horticultural, and timber land is the highest value of the land when used by a prudent agricultural, horticultural or timber operator for the sole purpose of continuing the operation, as a commercial agricultural, horticultural or timber enterprise, of an existing bona fide agricultural, horticultural or timber use.
Use value of bona fide marsh lands is the highest value of such land for the sole purpose of continuing the traditional use of the marsh lands for hunting, fishing, trapping or various types of aquaculture by a prudent manager of marsh lands.
There is a variety of requirements to qualify as bona fide agricultural, horticultural, marsh and timberland, such as the land must be for the production and sale of agricultural or timber products or under contract with a state or federal agency that restricts that production. To qualify for use value assessment the land must also be at least three acres, or have produced an average gross annual income of at least $2,000 in the past four years, and the landowner must sign an agreement that the land will be devoted to one or more of the designated uses.