fruit tree Tax exemption

5 Replies

In California more then 5 fruit trees is considered a Orchard for tax purposes, I can get the Orchard Tax exemption for first 4 years after planting. has any one tried this with multifamily properties? I know of single family homes that have. 

Think it also applies to multi family dwellings now might be worth a few thousand in Property tax reduction plus tenants like the Fruit trees. 

Every state will have different tax assesment laws so I suggest learn yours.. In wisconsin you can enter your land, if extra into a managed forest program which has reduced taxes.. Or you can engage in agriculture which will result in reduced taxes. Or you can produce maple syrup or prove your fruit trees are ag in some way, you can achieve reduced taxes. But you always have to pull out the subject and land it sits on. And there are minimum amounts they will accept for these practices.

also consider the added mess from fruit trees, as well as the things they attract, for example in WI fruit not picked that starts to break down or drops and left to lay attract yellow jackets and other stinging bugs as well as the hazard of falling fruit, and staining concrete depending where they are.  not a bad consideration though. 

We have no mess! and we get rent paid on time as the tenants pick the fruit for food and use cash to pay rent. we have the normal mow and blow pick up any thing else. We would have watered anyway so zero extra cost and with Tenants eating Avocados and citrus little goes to waste. I prefer a well manicured Green properties as we attract long term Tenants with well maintained landscaping in California people who consider lifestyle will pay higher rents.. 

@Alan DeRossett I'm in California and have more than 5 fruit trees! I didn't know about the exemption. Can you explain more? Googling gives me information overload.

I'm in California in a agricultural County. So you need to check for your own area where proprty is located. 

we are  following this  California Tax exemption rule"

Rule 131. Fruit and Nut Tree and Grapevine Exemption.

Authority: Section 15606, Government Code.

Reference: Sections 105, 211, 223, Revenue and Taxation Code.

(a) "ORCHARD" OR "VINEYARD" DEFINED. An orchard or a vineyard is a systematic planting of fruit and nut-bearing trees or grapevines as opposed to individual plantings for ornamental purposes. The exemption under Section 3(i), Article XIII, California Constitution, applies to such fruit and nut-bearing trees or grapevines planted in orchard or vineyard form. The fruit, nuts, or grapes, until harvested, are growing crops exempt from taxation under Section 3(h), Article XIII, California Constitution.

(b) LENGTH OF EXEMPTION. The exemption applies to those trees in an orchard until four years after the season of planting in orchard form, and those vines in a vineyard until three years after the season of planting in vineyard form. The exemption ceases on the fifth lien date after the season of planting trees in orchard form, and on the fourth lien date after the season of planting vines in vineyard form. For example, fruit trees planted in orchard form in the 1995 planting season become assessable on the 2000 lien date." is from our State our CPA has followed this discription and our property has some extra land we have planted . it must be systematic planting and not done as ortimental. but Tenets stay longer as well.  the exemtion covers the first few years before trees fruit. 

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