Agricultural Preserve Credit
The Agricultural Preserve Credit reduces property taxes for eligible farmers in areas of urban expansion. Assessors, auditors, treasurers, and data processing personnel must use the following rate and instructions to calculate the credit amounts for the appropriate payable year.
The Agricultural Preserve Credit local tax rate is the difference between:
- the current year total local tax rate for the unique taxing area in which the qualifying property is located and
- 105% of the prior year’s state-wide average local tax rate for properties located in townships.
This credit local tax rate will vary by unique taxing area because of the differing current year local tax rates in those areas. This base credit rate applies to cities as well as townships that have qualifying agricultural preserve property.
Example
| Example Current year statewide average township local tax rate | x | 105% | = | Example Agricultural Preserve Credit local tax rate for the payable year |
|---|---|---|---|---|
| 77% | x | 105% | = | 81% |
This is an example calculation and rate only. For the actual current rate, please see below.
Taxes Payable 2024
- Method 1:
The new base rate for calculating the payable 2024 Agricultural Preserve Credit local tax rate using Method 1 is 74%. The net tax capacity of the eligible land and non-residential buildings is multiplied by the Agricultural Preserve Credit local tax rate to determine the credit amount under Method 1. - Method 2:
The total number of acres enrolled in the Agricultural Preserve program is multiplied by $1.50 to determine the credit amount under Method 2.
The credit available to eligible property owners is the amount determined by either Method 1 or Method 2, whichever is greater.
Taxes Payable 2023
- Method 1:
The new base rate for calculating the payable 2023 Agricultural Preserve Credit local tax rate using Method 1 is 85%. The net tax capacity of the eligible land and non-residential buildings is multiplied by the Agricultural Preserve Credit local tax rate to determine the credit amount under Method 1. - Method 2:
The total number of acres enrolled in the Agricultural Preserve program is multiplied by $1.50 to determine the credit amount under Method 2.
The credit available to eligible property owners is the amount determined by either Method 1 or Method 2, whichever is greater.
