Does anyone know what specific excemptions there are when property is enrolled in PA 116 in Michigan.?

Question

Local school excemption are one but does that include all county schools like a career center or Intermediate school system. How about county taxes ect.

Answer 1

"Qualified Agricultural Property" is defined in Act No. 237 as follows:

"Qualified agricultural property" means 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 2 of the farmland and open space preservation act, Act No. 116 of the Public Acts of 1974, being section 554.702 of the Michigan Compiled Laws. Related buildings include a residence occupied by a person employed in or actively involved in the agricultural use and who has not claimed a homestead exemption on other property. Property used for commercial storage, commercial processing, commercial distribution, commercial marketing, or commercial shipping operations or other commercial or industrial purposes is not qualified agricultural property. A parcel of property is devoted primarily to agricultural use only if more than 50% of the parcel's acreage is devoted to agricultural use. An owner shall not receive an exemption for that portion of the total state equalized valuation of the property that is used for a commercial or industrial purpose or that is a residence that is not a related building.

The following is the definition of "agricultural use" from section 2 of Act No. 116 of the Public Acts of 1974 which is referred to in the definition above:

"Agricultural use" means substantially undeveloped land devoted to the production of plants and animals useful to man, including forages and sod crops; grains and feed crops; dairy and dairy products; livestock, including breeding and grazing; fruits; vegetables; Christmas trees; and other similar uses and activities.

It should be noted that this definition of agricultural use does not require that the property be classified as agricultural.

In this bulletin, qualified agricultural properties will be divided into 2 groups. The first group consists of those properties which are classified by the assessor as agricultural. The second group consists of those properties NOT classified as agricultural.

For further information:

http://www.michigan.gov/treasury/0,1607,7-121-1751_2228_2230_3543-65821--,00.html