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Agricultural exemption for raising heritage breeds?

post #1 of 15
Thread Starter 

My DH and I are contemplating a move to a more rural property (we hate the suburbs) and were wondering if you could get a lower tax rate (aka and agricultural exemption) on the property if we were to raise heritage breeds for conservation?  So if I wanted to champion the cause for an old breed I like, do you think this would fly?

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There are always two sides to a story and the truth runs somewhere down the middle.
Nobody loses anything by being polite but there are a lot of people who are afraid to take the risk.
In God's economy, the budget always balances.
Reply
post #2 of 15

Well, I don't know about heritage breeds, but we bought our place about a year and a half ago.  10 acres.  It was not already ag exempt, so we have to keep EVERY receipt on anything we buy to be used for "ag".  We have to do this for 5 years until we get to be ag exempt on taxes.  We do still have to apply for it every year to be declined for 5 years.  Sometimes, the red tape is so stupid.  But, we are going to do it there way and wait another 4 years to have it.  You could call your county extension agent to ask that question.  They are so helpful here.  They also have wonderful brochures and information for us "new" farmers.  big_smile

Allanah
Rockin H Farm
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Allanah
Rockin H Farm
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post #3 of 15

Since you haven't bought your property yet, the first thing to do is look for property that's zoned as agriculture.  That usually means farther away from town and a larger piece of land, but it could be worth it.  Where I'm looking to buy, I'd pay less in property taxes for 35-40 acres than my brother pays for his 5 acres closer to the city. 

If being that far out of town or having that much land doesn't work for you, then definitely look into the option texaschickmama mentioned.  It sounds like a hassle (I'm sure it was planned that way by the powers that be), but if it'll get your taxes down it's worth it.

Lorie
in Middle Tennessee
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Lorie
in Middle Tennessee
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post #4 of 15

This is very interesting. So are you guys saying that any property that is zoned for agriculture in the local zoning laws is automatically taxed at a lower rate? Or how does that work? I just assumed that different towns had different tax rates, I did not realize that actually using the land for agriculture made a difference. We're talking about property taxes, right?
Thank you!

post #5 of 15

Every state is different.  Here in CT if you meet certain criteria, such as zoning,
qty & type of animals, you pay MUCH lower property taxes.

I doubt there is a certain exemption for raising a heritage breed but there may
be other programs or grants available.  Do your homework.

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"A part of you might hate me, but son please don't mistake me, for a man who didn't care at all"
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post #6 of 15
Quote:
Originally Posted by SeaChick 

This is very interesting. So are you guys saying that any property that is zoned for agriculture in the local zoning laws is automatically taxed at a lower rate? Or how does that work? I just assumed that different towns had different tax rates, I did not realize that actually using the land for agriculture made a difference. We're talking about property taxes, right?
Thank you!


Yes.  Most counties have a planning/zoning commission that determines whether an area will be commercial or residential (and the density of either), suburban, rural, agriculture, etc.  Taxes are then assessed according to how it's zoned.  I'm not sure why ag is taxed less, but it probably has something to do with the fact that no one would be able to continue to produce food if they had to pay the higher taxes that everyone else pays.  As it is we're losing a lot of farms that have been in a family for generations.

Lorie
in Middle Tennessee
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Lorie
in Middle Tennessee
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post #7 of 15

In Md you have to prove that certain percentage(I want to say 70%) of your income is derived from the farm.  This stops anyone from planting 3 fruit trees and claiming they are a fruit farm. Or having 12 chickens and claiming to be a egg farm.  Sorry, that thats the way they do it here or I would be a chicken/fruit farmer with lower taxes.

post #8 of 15

yeah, a lot of places you have to show X amount of income from farm sources in order to qualify for farm tax rates.

it all varies A WHOLE LOT, and whoever said you need to check carefully (about zoning *and* about tax rates - one is a local zoning issue, the other is a state tax board issue) BEFORE purchasing property was dead on the money.


Pat, on agriculture-zoned land but not eligable for farm tax rates unless we produce I think it's $6,000 worth of gross farm-type receipts per year, which Ain't A Gonna Happen... but having also lived places with very differnt rules.

post #9 of 15

In Montgomery County Texas where we live, the county appraisal office told us that we had to have at least 10 acres to receive an ag exemption.  We only have 6 acres at this time, maybe we will buy more in the future.  We were also told about the 5 year waiting period that Texaschickmama was talking about...seems like a really long time to have to wait - I'm not usually that patient.lol

post #10 of 15

Here in Kentucky you can go to a store, weather it TSC, RK or SS. Ask for a tax exempt card. Fil it out and your farm is tax free at the store. After that in order to be a farm you have to practice ag, on it and you have 5 years before you have to show profit. Here our property taxes are base on the vaue of the farm itself, not where it is. There is people here that farms right in the middle of town.

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