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Land Use Deferral Program
Through Virginia Law, Madison County adopted a program of special assessments for agriculture, horticulture, and forestry lands. Qualifying properties are to be taxed based on the value of the land in one of these three uses, known as its Use Value. The Use Value is still considered by the State to be the land's fair market value, although this value is lower than the normal fair market value should the land not participate in the Land Use Deferral Program.
Properties in the Land Use program must submit their revalidation (form LU-2) annually by November 2nd.
Property owners wishing to participate in the program must submit their application (form LU-1) by November 2nd. Owners may request to be sent an application by contacting the Commissioner's office at (540) 948-4421 or email to landusetax@madisonco.virginia.gov.
2026 Land Use Revalidations & Applications were mailed as of September 25, 2025.
Revalidations and Applications to participate in Land Use for 2026 were due back to the Commissioner of the Revenue on or before November 2, 2025. Revalidations & Applications postmarked or received after the due date may now be subject to a late fee of $50.00. Forms will not be accepted after December 31, 2025. Please contact the Commissioner's office with any questions.
FAQs
Qualifications depend on the category being applied for. See the following table for the category and their requirements.
Land Use Category | Minimum Acreage | Requirement(s) |
Agricultural | 5 | A) 1 Commercial animal unit (1 cow, 1 horse, 5 sheep, 100 chickens, 66 turkeys, or 100 fowl) for each 5 acres and for 12 months B) Commercial crop for each 5 acres and for 12 months |
| Forestry | 20 | Must be protected from livestock. Cannot be clear-cut. |
| Horticultural | 5 | Nurseries, greenhouses, cut flowers, plant materials, orchards, vineyards, and small fruit products. |
Every year, all property owners participating in the Land Use deferral program will receive via mail their form LU-2. This form will revalidate the property for the next tax year. The revalidation form LU-2 is due by November 2nd each year.
Properties in the agricultural and horticultural programs must show income verification when they submit their LU-2 showing a minimum of $1,000 in qualifying sales during the current year OR the previous year's Federal Schedule F.
Properties participating in the forestry program do not need to show income verification nor provide documented proof the property is still forested when revalidating their property.
All new applications (form LU-1) to enter Land Use cost $50.00. Revalidations (form LU-2) cost $50.00 every six (6) years. Checks should be made payable to the Treasurer of Madison County.
Regardless of new application fees or revalidation fees, all late forms will be charged $50.00 each. Checks should be made payable to the Treasurer of Madison County. No forms will be accepted after December 31st.
Properties just starting a farm and wishing to enter Land Use whether under agricultural or horticultural will still need to provide documents to the Commissioner of Revenue to qualify. Depending on the situation, brand new farms may have an extended time frame to provide income verification. Please contact our office at (540) 948-4421 or email landusetax@madisonco.virginia.gov to see what your property will need to show to qualify.
To enter the Forest category of the Land Use deferral program, you must provide documents from the Virginia Department of Forestry (VDOF) or sign an affidavit with our office. You can find the local Madison VDOF representative(s) here.
No. The Board of Supervisors voted to remove the open space category on December 13th, 2022.
The Land Use program is a tax deferral program, meaning that should the property no longer qualify, there will be a roll-back tax of up to five (5) years and will include interest and penalty as applicable. Roll-back taxes are equal to the sum of the taxes deferred on the acre(s) non-qualifying. This is outlined in Virginia Code §58.1-3237 and Madison Code Chapter 24, Article II, Sec. 24-32, 24-33, and 24-34.
The revalidation (form LU-2) must be completed by the landowner(s). The income verification must be provided by the farmer. If you are unsure of how much land is being used for farming, please refer to the box on the LU-2 referring to your qualifying acreage. This is usually located near the top right-hand side of the form, underneath or next to the property's total acreage.
The revalidation form includes a section for landowners to write who their farmer is, if the landowner does not farm the land themselves. As a courtesy and if contact information is available, our office will attempt to reach the farmer if income verification is not received timely. Should no response be received, the landowner will be responsible for ensuring the income verification is completed before the property is removed from the program and assessed the roll-back tax. Ultimately, the landowner is responsible for ensuring their land qualifies each year.
If you require assistance completing your revalidation, please contact the Commissioner of the Revenue's office at (540) 948-4421 or email landusetax@madisonco.virginia.gov.
Farmers who farm a Madison County landowner's property and are aware they are participating in the county's Land Use deferral program, must show the Commissioner of Revenue's office income verification annually. This may include showing proof of qualifying sales of at least $1,000 during the current tax year (i.e. cattle sales, hay sales, etc.) or the previous year's Federal Schedule F. Farmers must also report all Madison County land they farm that participates in the Land Use deferral program.