Code of the West

[tdenny]

Just wait until your property taxes start exploding.

[mikell]

We had to fight to keep our 50 acres zoned farm. Finally I just told the guy sooner or later I'll win and you'll pay all my expenses to keep it agricultrual. "Think so he said" I just laughed and said "yep so whats next". They gave it to us and saved about 5k in taxes.

[Argee]

<font color="blue"> Finally I just told the guy sooner or later I'll win and you'll pay all my expenses to keep it agricultrual. </font color>

mikell,
Just exactly how did you go about this. I've been talking to our tax assessor/township supervisor for a couple of years about this and all he says is my operation is a hobby farm and doesn't qualify, you live on the property and it's your residence. I've asked him to define hobby farm and he blows me off and says my operation is a hobby farm, so I can only surmise that raising a market garden and finishing calves is only a hobby. It's not my sole income, but I do derive some income from it. In the eyes of the IRS I have a farming operation, but not in the eyes of the assessor. He's really got me pissed off and our annual tax tribunal is next week and I need some ammo.

[mikell]

If you make money off it it's a farm. If you don't pay sales tax on feed and equipment it's a farm. When we bought ours it was zoned and taxed agriculteral and we filled all the forms to keep it that way and they denied it. Thats when I explained we would fight and we would win. Just don't give up. Michigan is a right to farm state. I'm not at home so I can't help much off the top of my head.My brother in law is a supervisor and a farmer so he handled most of our paperwork even though he's in a different county. You should probably try to find a official who is a farmer.

mikell

[Argee]

<font color="blue"> You should probably try to find a official who is a farmer. </font color>

That's part of the problem, the supervisor has a farm. He raises cattle and row crops. Doesn't think that market gardens qualify as a farm. I keep asking him to define the difference between a farm and a hobby farm, all I get is rhetoric. That's why I'm going to the tribunal, I'll pose that question to him and his peers. But I certainly want to go prepared, that's why I need all the backup info from someone who's been through it.

You should be held to the standard of the IRS. If you qualify with the IRS you qualify with the state. They have tryed to do that in our area too. There is a lawyer here who I use for farm issues and he does about a 1/4 of his work just on these kinds of cases.

[mikell]

Having someone in the family definately helped but if the IRS thinks your a farm just don't give up all their concerned in is tax dollars. Get a consoultation???? from a lawyer that handles property problems, it might be a good investment.

[Argee]

What I understand so far is this: there is no real property tax benefit in being classified <font color="red">agricultural </font color> as opposed to <font color="red">residential. </font color> True or False? If that being the case, what are the benefits of the agricultural classification?

[mikell]

Thats news to me I know we're "agricultural exempt" and our taxes are low.

[utahmule]

In Utah, our property taxes go from ~$1,200/yr on the land to ~$6.00 because of our Ag status. Definitely worth it for us.

The catch around here is that if you take it out of Ag. production for "higher" use, you have to pay the accumulated difference. [img]/forums/images/icons/shocked.gif[/img]