Taxes

[pebald1]

Does anyone know what it takes to get an agricultural exemption in PA, so that you do not have to pay taxes?

I live close to the NY/PA border and if I buy a tractor from a NY dealer and they deliver to me, I guess they don't need to charge taxes. However, the dealer I want to do business with is in PA and must charge taxes. As you know, taxes on a 20K tractor are substantial and I could use that money to buy another implement or something else.

I have enough property where I could grow christmas trees, make an apple orchard or other agricultural/hortocultural zone and might be willing to do so if it would save me in the long run.

 

[DieselPower]

I would contact the PA Department of Revenue, Bureau of Business Trust Fund Taxes in Harrisburg, PA and ask them. They should have the answer you are looking for.

I "think" you should be able to purchase it tax exempt using this form as long as it is going to be used for farming.

http://www.revenue.state.pa.us/revenue/lib/revenue/rev-1220.pdf

 

[mjarrels]

Our farm is zoned R-2 (single family homes). We get an additional property tax break from the county by keeping it AG use (rent the pasture to a large dairy farm accross the road and make hay each year). Just have to submit some forms to the county tax authority.

mark

 

[pebald1]

Thanks for the info. I will be contacting PA Dept of Revenue. I guess the big question becomes what % of land use or income must come from "farming". I'm thinking it won't be favorable for my situation.

 

[AndyMA]

In the towns I live in in Conn you need to either generate or spend $15,000 per year from agricultural activities to get your land taxed as farmland. It has nothing to do with %.

Andy

 

[Soundguy]

Another interesting point.. Here in fl.. you don't have to have A-1 land to get a sales tax break.. as long as the tractor is used for farming.. Also.. just having an ag property tax break does not immediatly get you the ag sales tax break.. IE.. they are not dependent on each other.. etc.

I know some places want to see an FI income tax statement form before they will give you either tax break. ( An F1 in FL helps get the prop tax break.. etc.. )

Soundguy

Soundguy

 

[pebald1]

Yeah, doesn't look good for me in this aspect. In PA, you have to apply for the ag exemption and/or fill out a schedule F, which requires that a majority of your income be from farming, or some such stuff.