Start farming or see 1000% increase in property tax!

[lhfarm]

We received a tax assessment notice last spring that showed a 1000+% increase on the two parcels of land next to the house. These are mostly hardwood and pine, hilly acres that can not be tilled. At one time they were partially fenced for cattle. I wrote an appeal stating that nothing had changed in the land use or in the surrounding property for may years. However, the county doesn't think my owning a tractor and implements qualifies for agricultural status and have re-classified it residential. Just got a call from the county guy processing the appeal requests. I freely admitted that I haven't sold any produce in several years and I turned my hay fields into prairie grass (at the urging of the DNR). It seems my options are to declare it a "classified forest" with the DNR (Department of Natural Resources) or starting some sort of farming activity. The classified forest option is a one-way event. Do something with the land later and you owe the back taxes. So I need to start some sort of agricultural endeavor.

I could sell timber, but not sure I want to do that, although I'll look into it. My wife has suggested growing mushrooms, which she has been after me to do. I've sold all my hay making equipment and only had about 5 acres anyway. The county guy couldn't give me a legal definition for "agricultural activity" but assume it just means I need to be selling something produced on/from the land.

Add in the fact that I'm retired and don't want to start a second career, I need so creative thinking here. Thoughts and ideas appreciated. I've got 2 weeks to come up with a plan.

Thanks,

 

[dave1949]

You need a partner with youth, stamina and enthusiasm--no offense intended, I'm low on those items myself. :laughing:

You aren't making money off the land now, so your net cost to partner with someone is lower than high taxes.

What sorts of ag-related things are people doing in your area? Maybe someone would run cattle there again, or some other grazing? Maine has very definite definitions of what is agriculture and what is forestry. Yours sound a bit fuzzy. I wonder if you are getting the full scoop, or timber isn't as big as big a deal in IN as in Maine?

What is your succession plan for the land? That's a big open question around here for the timber industry since a lot of woodland is owned by an aging population whose heirs probably have no way of living here and making a living.

 

[PRF]

Some folks around here plant Christmas trees and gain farm status.

 

[KTurner]

I could sell timber, but not sure I want to do that, although I'll look into it. My wife has suggested growing mushrooms, which she has been after me to do. I've sold all my hay making equipment and only had about 5 acres anyway. The county guy couldn't give me a legal definition for "agricultural activity" but assume it just means I need to be selling something produced on/from the land.

Add in the fact that I'm retired and don't want to start a second career, I need so creative thinking here. Thoughts and ideas appreciated. I've got 2 weeks to come up with a plan.

Thanks,

If it were me, I'd go to your county govt website. They probably have a section on GIS or Property tax maps. Use that to find other people that have the farming status you want to keep. It probably even has aerial imagery that you can zoom in on and see what they are farming. Just to get some ideas of what people are doing in your area to maintain that status.

Not sure what your area is like - would there by any interest in renting the land to someone else who would farm it? A garden is just a small farm, right?

Keith

 

[Clint S]

We have a very small roadside stand that we sell from, honestly we make about 10$ a year. Sell a "little" fire wood (10 face cords) and buy a cow or 2 in the spring and butcher in the fall and sell one (almost no work). The "income" we make is offset by the deductions and depreciation of equipment.

 

[Sysop]

Plant fruit trees. Fairly low maintenance most years. Lots of ways to lose a crop, but lost crops are a risk of all farmers.

 

[dmccarty]

The classified forest option is a one-way event. Do something with the land later and you owe the back taxes. So I need to start some sort of agricultural endeavor.

In NC, there is a time limit to owing back taxes, I think it is seven years. Are you sure there is no such limit in your state. I would want to see this in writing and not what some said especially the tax man. Our state extension office is very good and has quite a bit of information on land managements and what you need to do to keep the tax man at bay. If your state has an extension office I would check their website and pay them a visit. Our extension office has classes every few years on land tax issues.

We had to put our land in a timber program or we would have had to sell the land. When we bought the land, the valuation and taxes were low, but right after we bought there was a new valuation period and the land value jumped up dramatically as did the property tax. It is a pretty $%^&*() form of taxation that can force you to sell your own property...

Later,
Dan

 

[murphy1244]

Ag status is better than forestry here in Ohio. Must have at least 10 acres for either.

 

[Clint S]

Yea be careful classifying your land anything. A few years ago my neighbor was complaining about his taxes. He had some fields with small swamps at the outside of them, nothing bad we go hay off the fields. Complained at assessors and she classified them at wet lands and his taxes went down a little. Fast forward a few years later and he wants to sell some and build a house on some.. Now that they are "wet lands" he has to have 1000's of dollars of tests and surveys by the DEC to do anything with it.

 

[Western]

You may want to Google "ginseng" May have great potential in your part of the world. If it grew in Texas, I'd have it every where.

Woods are the perfect place for it, so you wouldn't have to disturb your place too much.