Property Tax, avoidance?

Question

One of our development projects (assemblage) is about 8 parcels. Now obviously this is not fun to pay every year.  I have a couple questions.

Does anyone have experience with some sort of agriculture agreement with the county/state that allows for a tax free property in exchange for a promise to not develop said property for X number of years. I have heard of this concept, but am not sure where to start. Dept of Ag, DNR, etc??!?!

From your experience, does combining parcels (filing a plat) reduce or increase property taxes? (in general of course)

Any other suggestions? Thanks guys!

Christian Malesic · Answer

In PA it is called the Clean & Green program.  It has some federal backing so may be called this nationally, but we deal only with the county level government.

Ours is a 'cabin' on a 10 acre wooded lot.  I am very sure that the same program applies to both wooded and field (ie. it is not a save-the-spotted-owl program or don't-farm-for-cash program, but is for limiting development of any kind on any land.)

We bought the property this way, knowing the pros and cons and have since re-upped our agreement.

Here is the rub...  should we (you) ever want to take a property out of this status, all back taxes must be paid.  'All' is negotiable depending on the current public officials and staff.  The point is, this is not a do not develop for 10 or 15 or 30 years program.  It is a do not develop  program.

Danny Kay · Answer

Ahhh ok. Thanks! I have some other work on the table right now, but once i clear some of this crap out. I will be looking into some of these ideas asap. Thanks everyone!

About 2 years now on this forum, and I am still impressed with the quality of the members!

Rick Ducote · Answer

The 'use value' I mentioned really has nothing to do with conservation...in Louisiana anyway.  The property has to be 3 acres or more, dedicated to growing timber or agriculture crops or animals.  That's about it.

Danny Kay · Answer

Tim, thanks for the info. I will surely check into those sources. Now that you mention fish and game, that sounds very familiar. I hate not knowing who to get ahold of. Haha. Thanks again.

Rick, I will get a hold of the local assessor, our county's websites are really good so i will start by searching there. 'use value' sounds like it has potential. The property is not subdivided. It is heavily wooded in some parts, with a water feature. There is a couple existing (old) structures that I have a feeling would need to be demo before being able to apply for any type of conservation type classification. THANKS again!

Danny Kay · Answer

Wheatie, I understand they are suggesting conservation and I originally mention Ag. I'm just unsure which routes are available, so I had to throw out the best example I could think of so people would have an idea of what i was trying to accomplish. I will  contact the assessor asap, as a conservation type classification might be a little tricky, but ya never know with the government. I'm going to try and pursue both routes. Thanks wheatie!

Any other ideas guys/gals?

Jon Holdman · Answer

There is an agriculture designation that does affect taxes.  It was commonly used for larger plots when I lived in TX.  You did have to have some form of ag going on, but often a few goats was sufficient.

I think Tim and Rick are referring to conservation easements.   That's a different type of designation.  It has further reaching effects than just land use and taxes.  Its become a source of considerable abuse here in CO.

I'd speak to your county assessor.

Jon

Rick Ducote · Answer

Depending on your specific state laws....there probably isn't an 'exemption' for you rproperty.  I my state there is a property classification called 'use value.'  That is a lower than market value rate for property dedicated to agriculture production or timber production.  You must apply for this and it usually has a size requirement as well(3 acres in Louisiana).

Talk to the Assessor's office and find out the requirements.  They probably won't like the fact that you have them subdivided into a subdivision(if that's the case).  They may agree to accecpt some kind of instrument filed in the recorders or clerks office to consolidate them into one single tract in order to let you have the reduced valuation.

Exemptions usually only apply to non-profit org, religious, gov prop.

Timothy W. · Answer

I think I know exactly what you're talking about though the name escapes me at the moment.  It's not actually for agriculture - it's for wildlife habitat.  It's through the department of conservation or fish and game department depending on your state.  Find your local chapter of Ducks Unlimited or Pheasants Forever.  They will have someone who knows exactly what it is.

Tim