Study Notes on Agricultural Properties and Property Taxes

Agricultural Properties Overview

• Agricultural properties can greatly vary in size and purpose.

  • Some properties may encompass a vast number of improvements while others may be little more than raw land with a border fence.

Types of Agricultural Property

• Agricultural real estate can include the following types:
  • Family and commercial farms
  • Ranches
  • Orchards
  • Nurseries and greenhouses
  • Pastures
  • Feedlots

Property Taxes in Agricultural Real Estate

• It's important to note the following regarding property taxes:

  • For property tax purposes, the on-site residence of the owner of an agricultural enterprise is not considered agricultural real estate.

  • Instead, that residence is categorized as residential real estate.

  • The term "on-site residence" encompasses the owner's home and any related residential structures.

  • However, if the agricultural real estate includes housing facilities specifically for employees of the agricultural business, this WOULD be included in the property tax assessment.

Example of Property Tax Consideration

• Example: If a farm includes housing for seasonal workers, the value of that housing can be included in the overall property tax assessment.