Start farming or see 1000% increase in property tax!

[newbury]

OP - what are you talking about a 1,000% increase?
Is that from $1 an acre to $10 or $100 an acre to $1,000? i.e. $540 now or $54,000?

After reading the regs it looks pretty strict and doesn't seem to give you much choice to change your mind later on.

 

[MacLawn]

ih, I'm so mad I can't even read all the posts yet!! Just the fact that you have to even think about all this mess just ain't right!! I mean, really, this is your family land!! I know, we are sunk with all this crazy tax mess, but, wow, it just makes me mad! An honest hard working land owner has to try to figure out some ridiculous way to keep his own land by changing its use in some confounded way.

I ain't nary farmer and only have 4.5 acres in Georgia. GA law, at least my county, says you have to own 10 acres to put it under some kind of agricultural lower tax system, then you canno' touch it for some time, maybe 10 years. I just don't know. Okay, I'll try to cool down and finish reading where I left off...

 

[catfishdaddyengineering]

We have what is called "Current Use": Over five acres that is used for farm, ag, or timber that is producing ag products, livestock, or timber. It is taxed at the same percentage, but it is given a lower market value. Landowners only have to apply once and it applies year after year unless the status changes or the land is sold, and there are no back taxes.

 

[dmccarty]

ih, I'm so mad I can't even read all the posts yet!! Just the fact that you have to even think about all this mess just ain't right!! I mean, really, this is your family land!! I know, we are sunk with all this crazy tax mess, but, wow, it just makes me mad! An honest hard working land owner has to try to figure out some ridiculous way to keep his own land by changing its use in some confounded way.

I know a family whose grand parents owned a thousand acres or so in north Wake county. Wake county is where Raleigh is located. The land was out in the country back in the day but of course the city has expanded miles past the property. The grand parents donated land to start a church and they are buried in the church's grave yard. The land is at what is now a very MAJOR road and intersection. The church is on the NE corner, their house was to the NW and, 20 years ago, a family farm house was to the SE. The church in the early 90's was still a small but very nice country church. The church grew so much they built a HUGE new church next to the little chapel that started it all. I found the grandparents grave marker, barely visible in the grass and dirt. I was not happy about that disrespect...

Where the family's house was located is/was a small strip mall and the farm pond was surrounded by houses in a subdivision. Course, even this may have changed, since that part of the county has changed greatly and I have not been over there in a good 10-15 years.

The land around that intersection has to go for $100K+ an acre today...

Decades ago, the grandfather died and the grandmother did not have any money. The county took the land to pay the tax bill. Even 30-40, years ago, that land was worth a fortune. The generations younger than the grandparents did not have money, and I suspect education, so my guess is that someone may have taken advantage of them.

Property tax is inherently evil...

Later,
Dan

 

[lhfarm]

OP - what are you talking about a 1,000% increase?
Is that from $1 an acre to $10 or $100 an acre to $1,000? i.e. $540 now or $54,000?

After reading the regs it looks pretty strict and doesn't seem to give you much choice to change your mind later on.

The tax rate is the same, based on market value. There was a ten-fold increase of market value, the difference in ag vs. residential. That part of my property tax bill will increase about $1000.

We have what is called "Current Use": Over five acres that is used for farm, ag, or timber that is producing ag products, livestock, or timber. It is taxed at the same percentage, but it is given a lower market value. Landowners only have to apply once and it applies year after year unless the status changes or the land is sold, and there are no back taxes.

It has gotten more complicated. I talked to the county planning office. It seems that their zoning/use assignment has NO RELATIONSHIP to county assessor's use classification for tax assessment purposes. So even if I meet the zoning/planning office definition for ag status, I don't meet the tax man's. I'm still trying to figure out the assessor system. This is especially maddening because we have been told we will probably never be able to subdivide, even if we wanted to. We have an easement as the only access to our property.

Unless I spend a lot more time trying to figure out the tax assessor's system and/or lawyer-up, I don't think I'll win my appeal.

 

[deezler]

You need to re-classify your land with the assessor. It's all about the assessor, nothing to do with planning/zoning.

There should be a process and form to apply for change of classification with the assessor. I would march down to their office and request a sit-down, explain your situation, and request the appropriate form. ASAP. More than likely they are a normal human being who will understand your plight and try to help you. I hope.

 

[dmccarty]

You need to re-classify your land with the assessor. It's all about the assessor, nothing to do with planning/zoning.

There should be a process and form to apply for change of classification with the assessor. I would march down to their office and request a sit-down, explain your situation, and request the appropriate form. ASAP. More than likely they are a normal human being who will understand your plight and try to help you. I hope.

That is good advise. And if they are not a normal human being, figure out how to get around them. There should be a document on how property is assessed and how to appeal the assessment.

We had a major problem with an inspector who said our land did not perc when in fact we had TWO Soil Scientists who said the land DID perc. In NC, a Soil Scientist is a very specific position with defined education and experience. The inspector was NOT a Soil Scientist and was incompetent at best. I suspected we would have a problem with this guy so I read the state regulations. When he denied our permit I went to the state and he was over ruled. I suspect it was not the first time either.

I strongly suspect the inspector wanted a bribe or was trying to get us off the contract to buy the land. I know for a fact that there were other buyers behind us wanting the property and some of them had some big money interests in getting the land. We felt so strongly about buying the place we bought WITHOUT a perc permit. It was sorta a gamble, but not much of one, however, I think most people would have dropped the contract.

Knowing the rules helps.

The VAST majority of local government employees we dealt with very helpful and professional. There always has to be a bad apple I suppose...

Later,
Dan

 

[Midniteoyl]

The tax rate is the same, based on market value. There was a ten-fold increase of market value, the difference in ag vs. residential. That part of my property tax bill will increase about $1000.



It has gotten more complicated. I talked to the county planning office. It seems that their zoning/use assignment has NO RELATIONSHIP to county assessor's use classification for tax assessment purposes. So even if I meet the zoning/planning office definition for ag status, I don't meet the tax man's. I'm still trying to figure out the assessor system. This is especially maddening because we have been told we will probably never be able to subdivide, even if we wanted to. We have an easement as the only access to our property.

Unless I spend a lot more time trying to figure out the tax assessor's system and/or lawyer-up, I don't think I'll win my appeal.

You should lawyer up.. at least get an assessment of the case. I'm on 14 acres but only the acre the house actually sits on is considered residential for tax purposes.

 

[lhfarm]

You need to re-classify your land with the assessor. It's all about the assessor, nothing to do with planning/zoning.

There should be a process and form to apply for change of classification with the assessor. I would march down to their office and request a sit-down, explain your situation, and request the appropriate form. ASAP. More than likely they are a normal human being who will understand your plight and try to help you. I hope.

I checked the Assessor's web page and no change of classification form there. Without knowing the standards for how they classify, I'm running blind. I did look at the county's GIS system and the three large properties surrounding us are not ag type, but I know 2 for sure are in some sort of forest program. That may be my best alternative.

It seems to me that property type should be the SAME for planning/zoning and taxes. Am I missing something here?

 

[lhfarm]

OK, I've withdrawn the appeal. After talking with the assessor, it was clear they would not change the type back to ag unless I started to timber or some other form of active production on the land and had the documentation to prove it. Their position is that they assess on the actual use, not planning/or intended use. Putting the woods in a classified program remains an option. So I'm just going to live with it for now.

Thanks for all the information and encouragement.