Tax breaks for: Farmers
A Truth Squad companion
Tax breaks for: Farmers
Has Michigan got a deal for you
Click on any of the categories below to see how many tax breaks are out there, and how much they cost the state treasury. The numbers were taken from the state's executive budget for 2013 and 2014.
| Type of tax | Category | 2014 tax break value | Description |
|---|---|---|---|
| Sales and Use Tax Expenditures | Horticultural and Agricultural Products | $250,330,000 | Exempts sales of property used or consumed in connection with production of horticultural or agricultural products to persons engaged in business |
| State Income Tax | Farmland Credit | $44,651,000 | Provides an income tax credit for property taxes paid on farms covered by a farmland development rights agreement to reduce conversion of agricultural and open space lands to other uses (see Exhibit 17). This credit was expanded by Public Act 421 of 2000. |
| Property and Other Local Tax Expenditures | Agriculture Transfers | $34,300,000 | Increases in the taxable value of property are capped at 5 percent or the rate of inflation, whichever is less. When ownership in property is transferred, the taxable value is set equal to the state equalized value, which is 50 percent of the true cash value. This provision exempts transfers of agricultural property from the “pop up” in taxable value when the new owner certifies that the property will continue to be used in agriculture. |
In some cases, the state does not estimate the value of a tax break, leaving the tax break value empty in its tables.
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