Farm Property Taxes Issues

DTN Ag Policy Editor Chris Clayton reported earlier this week that, “The big fight in the Nebraska Legislature this year is over plans to reduce property taxes, which has the state’s farm lobbies pushing lawmakers hard for some relief.

“Numbers taken from the 2017 Ag Census show Nebraska farmers have more reason to complain about property taxes than farmers in nearby states.

“Farm income nationally fell between 2012 and 2017, and land values fell in some states during that time. Property taxes nationally for farmers went up $2 billion over that five-year stretch, jumping from $7.4 billion to $9.4 billion. The average property-tax increase nationally was $21.3%. Just one state, Rhode Island, collected less in property tax from farmers and ranchers over that five-year stretch, according to the Census figures.”

Mr. Clayton noted that, “California remains the highest state for taxing farmers’ property. In 2017, the 65,129 ranch and farm operations in California paid $1.126 billion, an average of $17,299 per farm. And California farm property taxes rose $300 million over that five-year span despite losing 6,297 farms. California property taxes paid rose 26.5% from 2012-2017.

Nationally, 1.92 million farmers paid $9.4 billion worth of property taxes in 2017, up $2 billion from five years earlier, a 21.3% increase. The average property tax paid by farmers nationally was $4,902 in 2017, compared to $3,752 per farm in 2012.”

The DTN article added that, “Illinois farmers also saw a 25.5% hike in their property taxes from 2012-2017 to an average of $6,379 per farm.”

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