Qualified Agricultural Property Exemption

Alicia Schaub

Certain properties in Michigan may qualify for an agricultural exemption from specific real estate taxes. If your property qualifies as such, you may be exempt from school operating taxes just as you would be if the property was your principal residence.

By Michigan law, “Qualified Agricultural Property” is defined as: unoccupied property and related buildings classified as agricultural, or other unoccupied property and related buildings located on that property devoted primarily to agricultural use as defined in section 36101 of the natural resources and environmental protection act. MCL 211.7dd

To request this exemption, you must file a Qualified Agricultural Exemption Affidavit with your local assessor by May 1st to qualify for that year. The assessor then makes the determination if the property is used primarily for agricultural purposes.

Once a property is granted this exemption, the exemption remains in place until the end of the year in which the property no longer qualifies.

If the property ceases to be used as agricultural property, the taxable value is uncapped in the year after the property is no longer agricultural, and the property could be subject to the recapture tax imposed by MCL 211.1001.

Therefore, it is very important to do your research, seek legal counsel, and speak with the local assessor about whether your property will qualify and what happens if it is no longer being used for agricultural purposes.