AGRICULTURAL TAXES -
Owning an agricultural business can significantly lower real estate taxes, but what exactly qualifies as an agricultural business? If you are considering getting into this industry, but aren’t sure whether your venture will qualify for tax benefits provided to farmers or if it would only qualify as a hobby, Finnell Legal can help.
The Greenbelt law, enacted in 1959, works to alleviate farm owners from the overburden of property taxes due to rising market values of surrounding properties by lowering the assessed value of the land. This is done by listing the land under an Agricultural Classification.
Obtaining an Agricultural Classification requires the submission of an application through the property’s appraiser’s office in the county where the land is located. Once the application is submitted the land owner then must prove there is an active agricultural business on the property.
If you have applied for this classification but have been denied, you do have recourse. By requesting a petition hearing through the Value Adjustment Board it may be determined that your land does qualify for the Agricultural Classification. If this occurs, Finnell Legal can help you through this process.
If you’ve recently purchased land that previously qualified for the Agricultural Classification and your intent is to continue running an agricultural business on the property, you need to be aware that the classification is lifted from the property with the sale, and you, as the new owner, must reapply for this classification.
If you have questions about your agricultural business or require assistance in obtaining an Agricultural Classification for your property, contact us today.