The Property Tax

Unless your property is exempt from property taxes due to being a tax exempt non-profit organization, or you have absolute allodial title to your land... sorry folks, you'll still have to pay property taxes. But there are some things you can do to either offset or reduce property taxes:

DEDUCTING PROPERTY TAXES AS A BUSINESS EXPENSE

If you are a business owner and use a significant portion of your property to produce income, (such as with rental homes, or a home based business) you would still pay the property tax, but can deduct the expense (along with any other business expenses, such as homeowners insurance, etc.) on your federal income taxes.

SELL OR DONATE A CONSERVATION EASEMENT

Alternatively, one could sell or donate a conservation easement to a non-profit conservation organization to limit development in whatever way one is willing to limit development rights on the land. For example, an easement could prevent the development of more than so many single family homes, or designate certain areas for agricultural use only, etc. If the easement is donated, it can be deducted from income taxes and from then on, your property taxes would be much lower (depending on the value of the donation), as by doing this you are greatly diminishing the property value - kind of a catch 22 for some, but minimizing value not only minimizes the property tax, but also minimizes gift and estate taxes (if the property is to be given to children or other beneficiaries in the future).

CLASSIFYING PROPERTY AS A TREE FARM

If you have sufficient land to grow timber, you could have your property reclassified as a tree farm, which drastically reduces your property tax, but when timber is harvested you pay income tax on profits of the sale. However, this merely shifts money from your County and Community to the IRS, so -- this is one of the least preferred methods.

LIVING WITHIN FEDERAL JURIDICTION

Anyone living within Federal Jurisdiction (i.e., DC; federal enclaves; any property that is leased, owned in trust or otherwise controlled by the US government; or a federally patented mining claim, desert claim or homestead) is exempt from property taxes, as only the state/county imposes property taxes; only property within the jurisdiction of the state/county is legally subject to the property tax -- nor is an owner of property within Federal jurisdiction legally subject to building codes, zoning, development rights or any other state, county or local law pertaining to the property and your property rights. (Note that all federal laws still apply to anything or anyone on or pertaining to the property, as do many other laws not related to the land itself). Also, if a land patent was issued by the state, it is the same as any other land/real estate deed and all state, county and local property laws and taxes still apply!

ARTICLES & RESOURCES

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» The Property Tax
» Eminent Domain Abuse
» Homestead Exemption
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