Watch this video to understand what you need to know about agricultural tax exemption. While looking for a property to purchase, you may consider a residential space with extra land without knowing the tax implications, more so if you don’t intend to farm the additional land. Engage an agricultural attorney and a tax professional to help you maneuver the agricultural tax exemption and residential property tax before purchase.
Property zoned as agricultural residential property and used for creating farm products qualifies for agricultural tax exemption even when the farming bit is not commercialized.
Save yourself the agony of making wrong tax-saving decisions based on assumptions, and consult an attorney. They will clarify the fine details and the law to help you understand the exemptions and the conditions to meet for qualification. Homestead and agricultural exemptions cannot be assigned the same potion of property. 1-acre homestead on a 5-acre farm does not qualify for agricultural tax exemption.
A higher agricultural tax rate than the capped homestead tax will not save you money if you opt for an agricultural tax exemption unless you are a full-time farmer. The agricultural portion is not portable, and the tax saving is immovable. On the contrary, the homestead tax savings are movable if you relocate from the property. It is the best bargain if you buy a property with extra land beyond your residential space but plan to move out soon. The agricultural attorney will help you save on your taxes and make the right decisions.