The 1973 North Carolina General Assembly enacted legislation providing for differential assessment of qualifying agricultural, horticultural, and forestry lands. This use-value taxation legislation provides for qualifying land to be assessed for property tax purposes on the basis of its value in its present agricultural, horticultural or forestry use instead of at its market value. This report summarizes both the basic provisions of the farmland use-value legislation and the results of the Act in 1974 along with partial results in 1975. Data on participation under the use-value legislation were obtained from individual counties by the North Carolina Department of Revenue. Data were obtained concerning both use-value schedules and on applications made and approved for use-value taxation. Fewer than one-fourth of the counties approved applications for farmland use-value taxation in 1974, and taxes were deferred on only about 4,500 acres of cropland in all of North Carolina. Participation is expected to increase throughout North Carolina in the coming years as counties reach the year in which a countywide revaluation is required.