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RRLund and others in Michigan

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Rick Kr

Well-known Member
I know a few of you have sat on the township boards over the years. I purchased 10 acres and need to excempt it from school taxes. Its farmland and will be farmed. I cant remember the name of the form you file.

All my other parcels are contiguous to my house so those were straightforward for homesteading.

Thanks in advance,
Rick
 
The only form that I know of is a 2599,but that one's for Qualified Ag Exemption for land that ISN'T classified ag. Talk to your assessor,they have the ultimate say in classification,but they can be over ruled by Board of Review,however the Board just met to hear March appeals a few weeks ago.
Pretty much,if it's classified ag,it gets Qualified Ag Exemption automatically.
 
Where are you at? No exemption here. All farmland gets taxed at full school rating. That is how the school levys get passed as the ones that don't own land vote for them and the farmers are the ones ending up paying the bill for those leveys . If it was fair it would be taxed only per residence but it is not. After the farmer it is the bussiness that pay for the new schools. Not the town familys with the kids.
 
In Michigan,there is a 24 mil levy for school operating. Homestead and qualified ag property is exempt from 18 of those mils. Non homestead,commercial and industrial is levied the entire 24 mils. That includes second homes,vacation homes,recreational property,rental property etc.
 
first question, is it classed 101-ag, if it is nothing needs to be done. some townships no longer use 101, so if its classed 401-res, then a qualified ag form must be filled out. if the assessor sticks with the definition, then you must have 40 acres with half or more tillable or actively farmed. if they are kind, they will recognize other land you own in the unit to make it qualify. since discretion is involved it helps to be as charming as possible. qualified ag forms if i remember right can be acted on at july board of review so give it a try and good luck.
 
Which form is that? A 2599 can't be acted on by an assesor nor Board of Review. They have to be sent to the State Tax Commission prior to March Board.
I don't think there's a 40 acre requirement for a Qualified Ag Exemption on 401res property,but yes,if it isn't 50% tillable but is being farmed it needs a 2599 request to the State TAx Commission. If it's MORE than 50% tillable,is classified residential and is being farmed,I don't remember if there even is a form is there? Just a verbal reminder to the assessor that it's being farmed is all I ever knew of being necessary.
 
An owner of property that was qualified agricultural property on May 1 for which an exemption was not on the tax roll may appeal to the July or December Board of Review. July and December boards of review have the power to grant the exemption for the current year (the year in which the appeal is made) and the immediately preceding year—provided the parcel in question otherwise qualified for the exemption for the year(s) involved. -the above was copied and pasted from the tax commission website. the 40 acre requirement was when they were using the PA116 definition, it has now been removed.
 
Right. We're on the same page. Board can't approve a 2599 though. That's the form that's filed with the Tax Commission to request Qualified Ag Exemption for land that's NOT classified Ag if it's less than 50% tillable. If the land IS classified Ag,then the 50% rule doesn't apply. If it's NOT classified Ag and is more than 50% tillable the assessor or Board of Review CAN grant Qualified Ag exemption,as long as it meets the other requirements under the "agricultural use" description. That description CAN NOT be used to determine classification though. Only the "agricultural operations" description can be used to classify the property. They're not the same. The "ag operations" description doesn't include the 50% tillable requirement.

It's all spelled out in the 48 page "Qualified Agricultural Property Exemption Guidelines" manual. If you don't have a copy in the office,you can download the PDF from the Michigan.gov website and print it out. Page 16 explains which to use,the Ag use or Ag operations description.
Interesting reading.
 
I'm not on the board, but I bought a farm this year. Since nobody else mentioned it, make sure you filled out a Michigan Department of treasury form 3676, it's the Agricultural Affidavit that certifies that the property is staying agricultural. If it's not on file, the taxable value will go up to what the ground is worth, and your taxes will skyrocket. My friend on the board of review made absolutely sure that I had one on file. :^) -Andy
 
(quoted from post at 17:27:41 03/28/13) I'm not on the board, but I bought a farm this year. Since nobody else mentioned it, make sure you filled out a Michigan Department of treasury form 3676, it's the Agricultural Affidavit that certifies that the property is staying agricultural. If it's not on file, the taxable value will go up to what the ground is worth, and your taxes will skyrocket. My friend on the board of review made absolutely sure that I had one on file. :^) -Andy
Click to expand...

Note: The form I referred to may be the one the others are talking about. I'm not sure. I'm not a tax guy. The law about the form I am referring to is PA 260. I know that much because it shows up on the online search of my property. Then I looked up what that was for, and remembered filling out the form. Things were super easy for me, Greenstone made sure everything was right when I was buying it. :D -Andy
 
Thanks for the info. I will be with the assessor tomorrow morning to find out what can be done.

I currently have 33 acres, this 10 is a 1/2 mile down the road, but has been farmed as long as I can remember. For whatever reason it is zoned 400 Residental Vacant.

I did find the exemption form under PA260. Which does mention a 40 acre minimum.

I will know more tomorrow, and post back.
Thanks
Rick
 
Probably the reason that it's residential is because of the size. The assessor most likely assumed a parcel that size would sell to somebody who would build on it and that it would sell for more than ag land typically does. An assessor can change the classification on a parcel like that from ag to residential so that if it does sell for a exorbitant amount,that sale won't show up on an ag sales study and artificially inflate the value of farmland.
It doesn't mean that the classification can't be changed back to ag now. It just has to meet the requirements of ag land under the ag operations description.
 
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