Garage/Pole Barn Tax Question

[mtholton]

I'm looking to have a garage or pole barn built this spring on land that is currently farmed and zoned as G4-AGRICULTURAL. Anything I should be thinking about going through the permit/zoning process? My taxes are very low and I don't want to mess that up! I have a mix of ag and (ag) woods on all my 40 acre parcels... Should I be expecting major tax differences? I'm in Western WI...

 

[SD51555]

Go straight to the source and ask. I'd also ask about insuring it while you're at it. By the time I built, I knew what my taxes would be. Best to know how your valuation is determined. Mine is simply square footage. Doesn't matter if it's built outta straw or gold bricks, temporary or permanent.

 

[mtholton]

Go straight to the source and ask. I'd also ask about insuring it while you're at it. By the time I built, I knew what my taxes would be. Best to know how your valuation is determined. Mine is simply square footage. Doesn't matter if it's built outta straw or gold bricks, temporary or permanent.

Good advice, I have a message out to them. Thanks!

 

[bzb_1]

If you can make sure when getting the permit you specify it is for ag reasons...The permit is much cheaper in De and they can only come out...Look to make sure that the building is where it is supposed to be and that is it. Cannot look inside, cannot deny your blueprints etc...here we don't even have to show building plans for AG buildings.

 

[Tree Spud]

Many counties now use satellite survey to measure square footage of buildings. It will be an improvement and will be taxed.

I would be more worried about resale value than a property tax increase. Build what you want and enjoy, there are ways you can build for future plumbing, electrical, & HVAC without making it known.

 

[Livesintrees]

Are you enrolled in an farmland assessment program? In NJ my home is taxed one one acre. The other 59 acres have just met the two year working requirement for woodland management. I’m able to put in a storage type building for equipment and such without my taxes being affected.

 

[mtholton]

Just chatted with the assessor, thanks for the tip. He was very helpful. Here is my understanding of everything and hopefully is helpful for anyone else a similar situation (at least I know this applies to Dunn County, WI, and I'm sure it is different all over).

The type of structure doesn't matter (at least for the way he described it), but rather the value that it adds to the land. So generally speaking, a pole barn for the same size as a stick built would be more often than not more basic and add less value from a market perspective. Obviously, a high end pole barn can cost more than a nice house and would increase the value of that property if it were sold. So size influences it, but not the only consideration. All about how they would say it would influence market value at the time of sale. So the key as I understand it is to make it nice enough to meet my needs while not making it over the top.... In addition, any detailing work on the inside that could be done post inspection would help my cause ;). Running electricity etc influences the market value as well etc. The MIL rate is 2% of the new value added. For my area, the land would likely take 1 acre for the building site, sometimes he said you can get away with .5 acre. It would go from being taxed at $200 per acre for ag land value to $5000 to $6000 for that acre plus the new value of the building. So if I built a 20K structure, I should expect an additional value of 25K taxed at 2%. Roughly $500 more in taxes per year than what I'm paying today (fortunately low rates due to low ag/ wood/ag taxes in WI. Another one time caveat is that I'd be taxed a one time conversion fee from ag to a building sight which would be a few hundred bucks to make up for all years of low ag taxes... Overall, made sense to me and I shouldn't expect any tax bills because of a pole barn addition.

 

[SD51555]

Sounds wide open subjective to me. I'd dig a little deeper on how they arrive at "value added to the land." Nobody knows what their place is worth until someone hands you a check. If there are any neighbors around the added a similar building, that might be a conversation to have as well. See how theirs changed.

Also, how much building can you get for $20,000? I could see if you get a sweet deal on labor and can do a bunch of it yourself. I had a pole shed spec'd out a few years back, and I couldn't get a base structure (dirt floor, poles, walls and roof) up for under $42,000 for a 32x40. Morton came in around $90,000 for a similar building with dirt work and heated concrete.

If they benchmark off the value of a morton structure, your valuation could go bonkers. I'd get a plan and take it to that dude for a face to face. $500 ain't so bad, but if that mushrooms to $2,000 or more (and then 10% inflation from there), the soul's ability to swallow that, should your interest start to wane, is gonna be challenged.

 

[Ben.MN/WI]

When I built my stick built garage/cabin combo in Rusk County Wisconsin the appraiser's cost estimate was pretty accurate and the tax increases were about what I expected. I'm sure there's a formula for stick built versus pole shed price per square foot. Then a different price per square foot for the unfinished garage portion versus the finished cabin area.

 

[Adittmer]

Sounds wide open subjective to me. I'd dig a little deeper on how they arrive at "value added to the land." Nobody knows what their place is worth until someone hands you a check. If there are any neighbors around the added a similar building, that might be a conversation to have as well. See how theirs changed.

Also, how much building can you get for $20,000? I could see if you get a sweet deal on labor and can do a bunch of it yourself. I had a pole shed spec'd out a few years back, and I couldn't get a base structure (dirt floor, poles, walls and roof) up for under $42,000 for a 32x40. Morton came in around $90,000 for a similar building with dirt work and heated concrete.

If they benchmark off the value of a morton structure, your valuation could go bonkers. I'd get a plan and take it to that dude for a face to face. $500 ain't so bad, but if that mushrooms to $2,000 or more (and then 10% inflation from there), the soul's ability to swallow that, should your interest start to wane, is gonna be challenged.

We build our 36x72’ with 17’ tall side walls 11 windows 4 doors , gutters and perma columns for 51k. Walters building with 2ft overhangs & wainscoting. And a 12x24 porch. Not sure how a 32x40 could be anywhere near 40k. Ours was built in 2017 in Northern Wisconsin


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[Skinner]

I don't think that assessor told you at all what you'll be paying, you're still left to guess.

I would pull comparables in your township and be ready for a fight. When we were building our house we reduced our assessment by about 40% by detailing how our neighbors were assessed. At least around here you have to be able to physically go into the office to contest. Honestly this still gets me really fired up, all over upstate NY they will assess anyone they perceive as non-local 2-3x what locals pay.

 

[Booner21]

Sounds wide open subjective to me. I'd dig a little deeper on how they arrive at "value added to the land." Nobody knows what their place is worth until someone hands you a check. If there are any neighbors around the added a similar building, that might be a conversation to have as well. See how theirs changed.

Also, how much building can you get for $20,000? I could see if you get a sweet deal on labor and can do a bunch of it yourself. I had a pole shed spec'd out a few years back, and I couldn't get a base structure (dirt floor, poles, walls and roof) up for under $42,000 for a 32x40. Morton came in around $90,000 for a similar building with dirt work and heated concrete.

If they benchmark off the value of a morton structure, your valuation could go bonkers. I'd get a plan and take it to that dude for a face to face. $500 ain't so bad, but if that mushrooms to $2,000 or more (and then 10% inflation from there), the soul's ability to swallow that, should your interest start to wane, is gonna be challenged.

I put up a 64x40 stick built and my assessed evaluation is a little over 26k. For once I was happy on a low evaluation I have more than double that in it.


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[Adittmer]

The reality is you only live once and life’s short! Build what u like a don’t worry about the rest enjoy it.


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