Date: Mon, 16 Jun 2008 10:25:47 -0400
From: Doug Nicholas
Subject: Land and Tax Burden
Linda Allred Cooper wrote:
“Have you ever considered the fact that so many people can no longer afford to pay the taxes on their land and that is why they are selling it? Property taxes are out of control.”
There are alternatives available to large-acre landowners to keep their property taxes down. Any owner of 20+ acres of woodland can, for the low cost of developing a forest management plan, place their land in forestry use value for taxation purposes. This will significantly lower the assessed value and the tax burden. Likewise, land in agricultural use can be placed in use value and significantly lower the tax burden. (Check with the Agriculture Extension Office for details on how these programs work.)
I know there are other dynamics at work. The kids grow up and move away, leaving no one to take over the farm when the parents retire. There are always issues for farmers and foresters with the prices of their products and natural forces (drought, hail, flood, hurricane, etc…) that can wipe out a whole year’s crop — sometimes it doesn’t seem worth it to plant and harvest. I had a great conversation with local forester Bud Taylor last year about the economics of forestry in this area (you can hear it on our website in July) — not great when the land values for housing are so high and the prices for timber so low. And when the letters come from the developers — and for some folks they sure do come! — it can be hard to resist.
The use value taxation categories are there to help farmers and foresters with the tax burden. There are other alternatives too. Conservation easements provide state and federal income tax benefits — the federal benefit now (for the next two years, anyway) extends for 15 years (formerly just six years). This can be a boon to “land rich, cash poor” landowners who previously wouldn’t have been able to take advantage of the value of their easement donations.
Tandy Jones, Triangle Land Conservancy’s man in Chatham County and a 30+ year Chatham farmer, would love the opportunity to talk to folks about their options.
That’s pretty much what I want to say here: there are options for landowners besides selling. Call Tandy Jones at 833-3662 ext. 107 to learn more.
Doug Nicholas
Director of Communications
www.triangleland.org
Triangle Land Conservancy: Saving the places you love for 25 years.
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