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.
Only donate if we've informed you about important Michigan issues
See what new members are saying about why they donated to Bridge Michigan:
- “In order for this information to be accurate and unbiased it must be underwritten by its readers, not by special interests.” - Larry S.
- “Not many other media sources report on the topics Bridge does.” - Susan B.
- “Your journalism is outstanding and rare these days.” - Mark S.
If you want to ensure the future of nonpartisan, nonprofit Michigan journalism, please become a member today. You, too, will be asked why you donated and maybe we'll feature your quote next time!