Bushore Church Real Estate

WILLIAMSON ACT
BUSHORE CHURCH REAL ESTATE
The California Williamson Act, also known as the California Land

Conservation Act of 1965, is a program designed to preserve agricultural
and open-space lands by offering landowners tax relief in exchange for a
long-term commitment to keep their land in agricultural or related uses.
Under the Williamson Act, property owners can enter into contracts with
local governments to restrict their land use to farming, ranching, or open
space for a minimum of 10 years, renewable annually.
In return, the land is assessed based on its agricultural value rather than
its market value, which typically results in a lower property tax.
Purpose:
The primary goals of the Williamson Act are to: 1) Protect agricultural land
from urban sprawl and development; 2) Support farmers and ranchers by
reducing their tax burden, allowing them to maintain viable agricultural
operations; and 3) Conserve open spaces and natural resources that
benefit wildlife and the environment.
The Act has been a significant tool in preserving farmland and maintaining
California’s agricultural productivity, especially in areas where urban
development pressures are high. However, local governments can exit the
program through a process known as “non-renewal,” where restrictions
gradually phase out over a nine-year period.
Valuation:
Appraisal of properties under the Williamson Act involves a special
method of assessment designed to offer property tax relief to landowners
who commit to keeping their land in agricultural or open-space use.
1. Agricultural Use Valuation (Restricted Value)
The main feature of the Williamson Act is that properties are appraised
based on their agricultural use value rather than their market value. This
results in lower property tax assessments for participating landowners.
 Agricultural Income-Based Approach: Instead of appraising the

land at its full market value (which would reflect potential uses such as
development), the property is valued based on the income it can
generate from agricultural or open-space activities. This method often
uses data such as crop yields, rent from leasing the land for grazing, or
other income related to its restricted use.
 Capitalization Rate: The income from the land is divided by a
capitalization rate (a figure that reflects the risk and expected return of
the land use) to determine the assessed value. This rate is often set by
the county assessor and may vary by region.
2. Comparing with Market Value
Although the property is primarily assessed based on agricultural income,

county assessors also determine the fair market value of the land for
comparison purposes. However, under the Williamson Act, the lower of
the two values—either the agricultural use value or the market value—is
used to set the property tax.
3. Monitoring and Adjustment

 Annual Adjustments: Williamson Act properties are reassessed
annually based on changing agricultural income, commodity prices, and
other factors related to the land’s agricultural productivity.
 Rollback Taxes: If a property owner exits the Williamson Act
(through cancellation or non-renewal), the property may be subject to
additional taxes. This process, known as “rollback taxes,” requires the
owner to pay back the difference between the reduced taxes paid under
the Williamson Act and what would have been paid based on the market
value.
4. Non-Renewal or Cancellation
When a Williamson Act contract is not renewed, the property begins a 9-

year phase-out period (or a 10-year period under the Farmland Security
Zone, a stricter version of the Act). During this time, property taxes
gradually increase, and the land is eventually assessed at full market
value once the contract expires.
Note:
In short, properties under the Williamson Act benefit from lower tax
assessments, which are based on agricultural or open-space income
rather than potential development value. This incentivizes landowners to
maintain their land for farming, grazing, or conservation purposes.

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WILLIAMSON ACT

BUSHORE CHURCH REAL ESTATE

The California Williamson Act, also known as the California Land

 Agricultural Income-Based Approach: Instead of appraising the

Although the property is primarily assessed based on agricultural income,

3. Monitoring and Adjustment

When a Williamson Act contract is not renewed, the property begins a 9-

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