Author Topic: Looking for Info on Farm Exemption requirements  (Read 450 times)

LovinPSDs

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Looking for Info on Farm Exemption requirements
« on: December 22, 2017, 09:41:21 AM »
So my folks have a bit of land where they build a really nice house roughly 30 years ago.  Now that everything has developed there property value has skyrocketed to the point where the taxes are becoming an issue. 

So I was wondering if people knew the basic requirements for farm/ag. exemptions, or where I could look. Not looking to do anything illegal here, they would likely be willing to take on the task depending on what it looks like, more trying to get an idea of what the requirements look like.  I haven't had much luck search online.  They are in Ohio if that helps at all.

Thanks!

MrsWolfeRN

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Re: Looking for Info on Farm Exemption requirements
« Reply #1 on: December 22, 2017, 09:52:02 AM »
Each state might be different, but in my state at least 10 acres must be in production and you must report farm income or farm rental income for your property. I just ran into this issue and I started by calling the county tax office. They then referred me to the local farm service agency.

terran

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Re: Looking for Info on Farm Exemption requirements
« Reply #2 on: December 22, 2017, 09:52:48 AM »
Another option is that some states (or maybe its at the municipal level) will allow you to commit the land as a conservation area which I believe can reduce or eliminate the tax. Of course, this also means you're giving away a valuable asset (it's permanent), but if you goal is to live somewhere with some land you can enjoy (and future generations can enjoy) without the property tax, then it can be a good option. My grandparents did this.

Cadman

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Re: Looking for Info on Farm Exemption requirements
« Reply #3 on: January 05, 2018, 10:41:35 AM »
I think a visit to the county assessor's office may be in order. I had to do something similar a few years ago and learned about quite a few exemptions we were able to take advantage of after meeting various requirements - minimum number of acres, do we live there full time, is the property 'family owned', etc.

Recently we put the majority of the tillable land in CRP rather than cash rent. If you go this route, be aware the IRS considers this a farming activity and SE tax will be assessed (unless they're drawing SS). The issues gets a little... convoluted https://www.calt.iastate.edu/taxplace/irs-sticking-its-unofficial-position-crp-payments-are-subject-se-tax.

taxedatty

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Re: Looking for Info on Farm Exemption requirements
« Reply #4 on: January 05, 2018, 10:39:07 PM »
Did you happen to check Ohio Dept of Taxation website at https://www.tax.ohio.gov/real_property.aspx? Is the second thing on the list (Current agricultural use valuation (CAUV)) is what you are looking for?

tralfamadorian

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Re: Looking for Info on Farm Exemption requirements
« Reply #5 on: January 06, 2018, 08:25:44 AM »
Call your county.

In my area we can get farm exceptions by growing a hay field, having a cow or making a timber plan. It's a very low bar to cross. 

Dusty Dog Ranch

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Re: Looking for Info on Farm Exemption requirements
« Reply #6 on: January 06, 2018, 09:41:44 AM »
Are they using this land for agriculture? If not, it's unlikely they can get reduced taxes. My county has recently become more rigorous in enforcing this...one cow's not gonna cut it. If they are farming, see if there is a land trust in your area that works on farmland preservation.