Interest Rate for Agricultural Lands as Required by Idaho Code 63-602K for the 2010 Assessment Year
The statutory interest rate under Idaho Code section 63-602K is 7.43% for assessment of qualifying land on the 2010 assessment roll.
In determining the speculative portion of value of agricultural land, Idaho Code section 63-602K requires the assessor to set a value “established by capitalization of economic rent or long-term average crop rental at a capitalization rate which shall be the rate of interest charged by the Spokane offices of the Farm Credit Service system averaged over the past five (5) years plus a component for the local tax rate.”
The Farm Credit Service System in Spokane currently provides the State Tax Commission with a five year history of their 20 year long term fixed loan rates. The current five year average of the 20 year fixed loan rates is 7.43%.
To get the 2010 capitalization rate for agricultural lands, add the 7.43% rate to the current tax rate selected for the code area where appraisals are made.
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