Michigan Regulations for Permitting, Assessing, and Taxing Sugar Houses

[Cedar Eater]

I know that in some states sugar houses get special exemptions. Is anybody familiar with Michigan's regs on them? I know the Michigan Food Law covered business licenses, but it seems like I can't claim that a sugar house is an "ag building" on land that isn't zoned agricultural, even though a sugar bush is recognized as an agricultural use of property. I thought there was an exemption for greenhouses and sugar houses on residential land.

[regor0]

Good Question.

[Four D Acre Farms]

Probably not much help cause ours is already ag. but I believe that a woods that is tapped can be listed under ag helps with taxes but I would call your local assessor. I would think there would be some sort of sizing (number of taps etc. to qualify) but then again all you have to do to get a farm plate for your truck is tell the person at the ss office that you have a farm

[chandler37]

There is no exemptions on a sugar house from paying taxes in Michigan. It will be assessed and taxed just like your house, garage, or barn. If the sugar house is on land that your resided on, you already get the only break due to you if you have a "PRE", Principle Residence Exemption on that parcel.
That exemption removes the state 18 mils. school tax from your bill.
Now if the sugar house is located on a separate parcel of land not continuous to your residence and that parcel of land in your sugar bush, it now qualifies to be classed as Qualified Agriculture. And then it would be exempt the 18 mils school tax. You wound need to file for this with your assessor.

Around 2009 legislators added sugar bushes and buildings to the list of Ag. activities. What they failed to do was exempt the equipment used to collect and process sap and bottle syrup.
That equipment falls under Personal Property and the local assessor could ask for a complete inventory of your equipment and value.

A couple state web sites to help:
http://michigan.michigan.gov/documents/treasury/Bulletin1of2009_265899_7.pdf

http://michigan.gov/documents/Qualified_Agricultural_Prop_139854_7.pdf

35 years property assessor/retired
hope this helps

[Too Tall]

Good stuff guys. Thanks for posting those links. I think I qualify for an exemption. Just sent an email to my assessor. You may have saved me several hundred dollars per year!

[David in MI]

There are two ways by which you may reduce your property tax liability in Michigan if the parcel is involved with agricultural operations. One of them is to obtain the agricultural exemption and the other is to have the property classified as agricultural property.

In order to obtain the agricultural exemption, more than 50% of the acreage must be devoted to agricultural use. I obtained this for our farm parcel and it required a visit by the assessor. We basically drove him around and pointed to all the maple trees. However, I think there is an easier way to go about it as the threshold for changing the property's classification doesn't require the same 50% usage figure the exemption requirement does.

If you own a vacant parcel and the sole/primary use of that parcel is an agricultural operation(s) then it is probably easier to just have the parcel reclassified. Real property classifications are governed by current use.

By the way, I wouldn't rely upon the advice you receive from either your local government unit nor the assessor as they may not know what they're talking about. Your mileage may vary but that was my experience.

Quoted from the State Tax Tribunal piece on real property classification guidelines (link below):

What is the difference between a property’s current use and its highest and best use?

"MCL 211.34c defines how a property is to be classified. Property is classified according to its current use. The highest and best use of the property has been, and continues to be, the standard upon which an assessor values property but is not how its classification is determined. These are two different and distinct issues; valuation does not drive the property’s classification. "

Links: https://www.michigan.gov/documents/treasury/ClassificationRealProperty_195107_7.pdf

https://www.michigan.gov/documents/2599f_2606_7.pdf

The law as written: http://www.legislature.mi.gov/(S(nsqwnmjhkcjen4ba0t1hskiu))/mileg.aspx?page=getobject&objectname=mcl-211-34c

[1arch]

I had 13 of an 18 acre residential parcel reclassified as A1 a couple years ago which saved a few $$$. My initial phone conversation with the assessor was a bit dicey since he accused me of being from a different planet... However after providing him with the appropriate documentation he was able to gain an agricultural understanding for the industry and provided the A1 assessment . Since then I have also had adjoining land that I lease reassessed as A1.
Two years ago we built a sugar house which added a few $$ In taxes but not much as compared to he A1 savings. I asked the assessor about A1 classifications for a sugar house but he said a building is a building wether it's a dairy barn or a sugar house. They are taxed the same.