[AT] Subdivision Development

[Dave Ernst]

----- Original Message ----- 
From: "charlie hill" <chill8 at cox.net>
To: "Antique tractor email discussion group" <at at lists.antique-tractor.com>
Sent: Friday, December 03, 2004 11:26 AM
Subject: Re: [AT] Subdivision Development


> We have the same thing here Walt.  It is referred to as use tax.  Meaning 
> that the land is taxed according to it's use.  Agricultural use land is 
> valued at a much lower value than the same tract would be if it were 
> bought by a developer and left idle.  ( I know that doesn't make sense but 
> that's what they do.)   The only catch to it is this.  If you are a farmer 
> or developer who continues to farm a tract and keep it under ag use and 
> you decide to turn it into a subdivision, etc. then they go back for 3 
> years, recalculate the value and make you pay the difference in the taxes.
>
> Charlie
Interesting to note in this discussion is no mention of depreciation.
The country here is primarily agriculture except the encroachment by 
subdivisions.
If I choose to sell to a developer they do the same thing here, charge back 
taxes
like Charlie said. But as far as agricultural machinery goes, we are
allowed a 7 year depreciation schedule, and that helps a lot,
and the sales tax on machinery related to agriculture is 2% in this state.
Dave