REVENUE RULE 94-33
1994-1 C.B. 235, 1994-21 I.R.B. 5.
Internal Revenue Service
Revenue Ruling
SPECIAL USE VALUE; FARMS; INTEREST RATES
Published: May 23, 1994
Section 2032A. - Valuation of Certain Farm, Etc., Real Property, 26 CFR 20.2032A-4:
Method of valuing farm real property.
Special use value; farms; interest rates. The 1994 interest rates to be used in computing
the special use value of farm real property for which an election is made under section
2032A of the Code are listed for estates of decedents.
This revenue ruling contains a list of the average annual effective interest rates on new loans under the Farm Credit Bank system. This revenue ruling also contains a list of the states within each Farm Credit Bank District.
Under s 2032A(e)(7)(A)(ii) of the Internal Revenue Code, rates on new Farm Credit Bank loans are used in computing the special use value of real property used as a farm for which an election is made under s 2032A. The rates in this revenue ruling may be used by estates that value farmland under s 2032A as of a date in 1994.
Average annual effective interest ates, calculated in accordance with s 2032A(e)(7)(A) and s 20.2032A-4(e) of the Estate Tax Regulations, to be used under s 2032A(e)(7)(A)(ii), are set forth in the accompanying Table of Interest Rates (Table 1). The states within each Farm Credit Bank District are set forth in the accompanying Table of Farm Credit Bank Districts (Table 2).
Rev. Rul. 81-170, 1981-1 C.B. 454, contains an illustrative computation of an average annual effective interest rate. The rates applicable for valuation in 1993 are in Rev. Rul. 93-28, 1993-1 C.B. 201. For rate information for years prior to 1993, see Rev.
Rul. 92-12, 1992-1 C.B. 311, Rev. Rul. 91-24, 1991-1 C.B. 188, and Rev.Rul. 90-49, 1990-1 C.B. 171, and other revenue rulings that are cited therein.
DRAFTING INFORMATION
The principal author of this revenue ruling is Lane Damazo of the Office of Assistant Chief Counsel (Passthroughs and Special Industries). For further information regarding this revenue ruling, contact Lane Damazo on (202) 622- 3090 (not a toll-free call).
Rev. Rul. 94-33 TABLE 1
TABLE OF INTEREST RATES
(Year of Valuation 1994)
| Farm Credit Bank District in Which Property Is Located | Interest Rate |
| Baltimore | 9.34 |
| Columbia | 9.70 |
| Louisville | 9.34 |
| Omaha | 9.15 |
| Sacramento | 10.46 |
| St. Paul | 9.64 |
| Spokane | 9.60 |
| Springfield | 9.51 |
| Texas | 9.79 |
| Wichita | 9.22 |
Rev. Rul. 94-33 TABLE 2
TABLE OF FARM CREDIT BANK DISTRICTS
| District | States |
| Baltimore | Delaware, District of Columbia, Maryland, Pennsylvania, Virginia, West Virginia |
| Columbia | Florida, Georgia, North Carolina, South Carolina |
| Louisville | Indiana, Kentucky, Ohio, Tennessee |
| Omaha | Iowa, Nebraska, South Dakota, Wyoming |
| Sacramento | Arizona, California, Hawaii, Nevada, Utah |
| St. Paul | Arkansas, Illinois, Michigan, Minnesota, Missouri, North Dakota, Wisconsin |
| Spokane | Alaska, Idaho, Montana, Oregon, Washington |
| Springfield | Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, Vermont |
| Texas | Alabama, Louisiana, Mississippi, Texas |
| Wichita | Alabama, Louisiana, Mississippi, Texas |
Rev. Rul. 94-33, 1994-1 C.B. 235, 1994-21 I.R.B. 5.