Stormcrow's Hobby Farm

[Sally PB]

Do you know what those are? Stuff you planted, I hope?

 

[AGeese]

@U_Stormcrow do you file as a hobby farm? Just wondering if they hit you any different with taxes if you do.

 

[U_Stormcrow]

@U_Stormcrow do you file as a hobby farm? Just wondering if they hit you any different with taxes if you do.

I have an Ag exemption on the entire property. and a Homestead exemption. Since the house isn't built yet, I pay less than $200/yr in property taxes on then entire 30a.

Soon, we'll get another exemption (age) which will reduce the valuation of the home for tax purposes once its built. I voted against it, but I was outvoted.

 

[AGeese]

I have an Ag exemption on the entire property. and a Homestead exemption. Since the house isn't built yet, I pay less than $200/yr in property taxes on then entire 30a.

Soon, we'll get another exemption (age) which will reduce the valuation of the home for tax purposes once its built. I voted against it, but I was outvoted.

Well when it comes time to sell you'll get an appraisal and market value assessment anyway so enjoy! Unless you wanted to pay more.

 

[U_Stormcrow]

Well when it comes time to sell you'll get an appraisal and market value assessment anyway so enjoy! Unless you wanted to pay more.

I'll be dead.

This is the last plot of land for the wife and I. We aren't going anywhere. The kids will get the tax bill with their inheritance.

 

[Sally PB]

I have an Ag exemption on the entire property. and a Homestead exemption. Since the house isn't built yet, I pay less than $200/yr in property taxes on then entire 30a.

Soon, we'll get another exemption (age) which will reduce the valuation of the home for tax purposes once its built. I voted against it, but I was outvoted.

Wow. That is wonderful!

In Michigan, the tax for residential property is based on the assessed value. It cannot rise year to year more than a certain amount (not sure what that is), or the rate of inflation. This was what Prop A did, 31 years ago, just before we bought our original piece of property with our house.

Our property tax for three parcels (all abut each other) is around $3900 this year. Our assessment goes up, and up, and up, but the tax is capped as far as how much it can rise.

When property is sold, however, the tax "resets" and the new owner pays tax based on the new value. So our $155K purchase price (for all three parcels) would reset to more than double that.

The downside of Prop A? Heh heh heh. Michigan roads are among the worst in the country. Schools are always begging for funding.

 

[Sally PB]

Well when it comes time to sell you'll get an appraisal and market value assessment anyway so enjoy! Unless you wanted to pay more.

I'll be dead.

This is the last plot of land for the wife and I. We aren't going anywhere. The kids will get the tax bill with their inheritance.

Us too. Our concern is what to do with our property in our will, as we have no children.

 

[U_Stormcrow]

Us too. Our concern is what to do with our property in our will, as we have no children.

Either will it to the extended family, or a charity you feel very strongly about.

 

[U_Stormcrow]

The downside of Prop A? Heh heh heh. Michigan roads are among the worst in the country. Schools are always begging for funding.

Florida has similar. TX too.

The schools in both places will eagerly challenge MI for the bottom of the pack. FL has passed a number of funding increases for the schools in the 5+ decades I've been around. The money seems to go everywhere but the classroom, much of it to retired teachers. [and I'll stop there before I get too political]

 

[Sally PB]

A lot -- most? -- of the funding for schools came from property taxes. When we all got excited about property tax relief, some of us said, well, how will you fund the schools? But that wasn't addressed with the same enthusiasm.

Either will it to the extended family, or a charity you feel very strongly about.

Not much there, for family.

Thinking about a land conservancy. Know anything about those?