Stateline Midwest ~ October 2012
State-by-state overview of state farmland taxation laws and formulas »
It is the single largest source of revenue raised by local governments (two-thirds of the total), and the single largest tax paid by farmers (44 percent of the total). The property tax is the lifeblood of rural schools and other critical public services, but can also be a burden on agricultural producers: Across the United States, the equivalent of one-fifth of the gross sales produced by farmland is paid in property taxes each year.
Such costs can impact the stability of many farms, particularly in a period of income shortfall such as the one encountered by some farmers in the Midwest during the drought of 2012. State legislators are ultimately responsible for finding the balance that works, an agricultural taxation formula that sustains both rural communities and their farmers.