Why people don't keep older equipment running

[grsthegreat]

However, if you decide to sell it (at least here in Michigan), and you sell it for any other use but ag, the back taxes become liable and must be paid in full before the title will come out of escrow. If it stays ag, no issue, but changing use causes that to happen here. Not sure about where you live, but worth a look.

No, not here. No such clause.

 

[ovrszd]

"Buy land, they aren't making it anymore", is a ORIGINAL quote from Mark Twain.
Mark Twain (Samuel Langhorne Clemmens) died on April 21st, 1910.
It seems likely that your (decades old?) large farmer friend was not even born at that time.

Okay.

 

[ovrszd]

Well i purchased the 10 acres across from me 5 years ago so no one would build there. Its kept in hay, so i only pay $160 per year in taxes. Worth it to keep the privacy...and i paid $69,000 for it and its worth over $105,000 now, so win win

Yep. That's my friend's point.

 

[two_bit_score]

However, if you decide to sell it (at least here in Michigan), and you sell it for any other use but ag, the back taxes become liable and must be paid in full before the title will come out of escrow. If it stays ag, no issue, but changing use causes that to happen here. Not sure about where you live, but worth a look.

No, not here. No such clause.

Roll back on AG exemptions is pretty common and can create a real problem if buyers/sellers are not aware.
In a Texas Roll back applies to the last 3 years of AG exemption.

 

[dnw64]

However, if you decide to sell it (at least here in Michigan), and you sell it for any other use but ag, the back taxes become liable and must be paid in full before the title will come out of escrow. If it stays ag, no issue, but changing use causes that to happen here. Not sure about where you live, but worth a look.

It's similar in VT. But you don't owe back taxes, you owe 10% of the value of the land. For instance, the 30 acres we have in "Current Use" reduced our taxable value by $74,000, so we would have to pay $7,400 to take it out of the program. It saves us $2000/year, so as long as we leave it in for at least 4 years it starts paying for itself even if we do end up taking it out (which we have no intentions of doing).