Agricultural land with large house (Washington, Northampton: for sale, real estate, leasing)

[PacoMartin]

I was looking at a website from a guy in Lower Saucon who has a nice house that he paid $350K for about 11 years ago. He calls himself "the common man".

But he was complaining about inequity of his real estate taxes. Northampton county reassessed in 1995 (6 years before he bought his home). He paid about 9.5% less than the assessed value, and was surprised at how difficult it would be to change the assessment.

It became a little obsession with him. He discovered that a prominent surgeon had purchased 25 acres containing an old house about 1.5 miles from him. The purchase prices was $1.35 million in 1989. Because the 25 acres was zoned agriculture the doctor was paying about $30/month real estate taxes on the land (the house was normally valued).

Because the land was zoned agriculture, the doctor was paying $9K real estate taxes per year for 25 acres and a 5500 sq ft house, while "the common man" was paying $10.5K per year for 1 acre and 3500 sq ft house.

This became a big deal to him, and he wrote to government officials, and started a website complaining about the inequity.

People were polite, but nobody cared. The doctor had purchased the land as agricultural, and the state controlled the designation.

I believe that the reason the purchase was 25 acres (which assembled 3 plots) is that 25 acres is the minimum required to keep the agricultural assessment. If it was zoned normally, the real estate taxes might be $9K per month, instead of $9K per year.

Neither of these people are poor. The surgeon is obviously far wealthier, and a careful businessman. Presumably when he retires, he will sell the 25 acres for development and make millions of dollars.

What is the consensus? Do you care, do you not care? Do you just assume the wealthy have agents who find loopholes for them? Would you do the same thing if you had the means?

[maf763]

Is part of the 25 acres being used for farming? If not, it seems logical that the land should not be considered agricultural, but I don't know what is legally involved in zoning laws. Regardless, the common man sounds like a baby. Somebody should tell him that common people don't live in 3500 sq foot houses on an acre of land. I wonder how he would feel about somebody living in a rowhouse in the city starting a petition to raise his taxes based on his wealth.

[toobusytoday]

That's interesting. My understanding was that land had to be in a Farmland Trust American Farmland Trust to be exempt from higher taxes, but maybe it just has to be in an area zoned agricultural. If it's put in the farmland trust then it's promised never to be sold for anything other then farming. I don't think it's fair for someone that is not farming to take advantage of an agricultural designation. Seems like you would have to show some sort of proof of crops.

[PacoMartin]

Originally Posted by toobusytoday

That's interesting. My understanding was that land had to be in a Farmland Trust American Farmland Trust to be exempt from higher taxes, but maybe it just has to be in an area zoned agricultural. If it's put in the farmland trust then it's promised never to be sold for anything other then farming. I don't think it's fair for someone that is not farming to take advantage of an agricultural designation. Seems like you would have to show some sort of proof of crops.

It is not part of the Northampton County Farmand Preservation Office, which does not include any land in Lower Saucon Township

The Land Use Code is Rural Land w/o buildings (for the 2 lots without building). The Land Use Code is Rural Prop w/ Residence (for the lot with the house). The Classification is Agricultural, and it is approved for Both Homestead/Farmstead.

I am unfamiliar with this area of law, so I don't know what is required to keep the classification. Obviously a surgeon can rent a cow, or do whatever is necessary to keep the classification, including leasing a portion of the land to a farmer. If there is a potential of roughly thousands of dollars per year in taxes at stake, you could give the use of a portion of the land to a farmer for free to grow crops just to keep the classification.


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But I am interested in the previous comment as well. As he points out, the common man is not poor ( he never said he was poor, just not very wealthy).

The common man freely reveals his identity and tax records. His home is on the market right now, and he is asking for almost exactly the assessed value.
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I see no reason to mention the name of the surgeon. It is a matter of public record, so you can look it up. But the property is on a bend in Bingen Road just north of the Saucon Valley country club.

There is no indication whatsoever that the surgeon did anything dishonest. He just wisely purchased a large lot of land with agricultural designation with a big old house, instead of a McMansion which he could easily afford.

I am making the assumption that the surgeon doesn't have a secret desire to leave the operating room and go home and farm. I do not know what difficulties would be involved in turning the land into a development once he retires.
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[JohnZ963]

Look up the Pennsylvania "Clean and Green" program, aka "Act 319."

Many large tracts of land in PA are enrolled in it for reduced taxes. It is very common.

[PacoMartin]

Originally Posted by JohnZ963

Look up the Pennsylvania "Clean and Green" program, aka "Act 319." Many large tracts of land in PA are enrolled in it for reduced taxes. It is very common.

Well it isn't that program. They have 28,991 acres in Northampton county, but none in Lower Saucon Township. Most of that land is in North county.

Allen 994
Bushkill 907
East Allen 2,778
Forks 823
Lehigh 1,616
Lower Mount Bethel 6,463
Lower Nazareth 1,166
Moore 4,373
Plainfield 3,553
Upper Mount Bethel 3,193
Washington 1,736
Williams 1,389

There are about 5 homes near Bingen Rd (all less than 25 acres) for sale, and some of them are zoned agricultural, but all of them have normal valuations on their land. He must have found some other loophole.

[Icy Tea]

Theres a clean and green program and local farmland preservation that puts land into a protected status where it can't be developed. You pay lower taxes but the land generally isn't worth as much to sell because it it can't be developed. But since some areas of PA( SE PA) have outstanding agricultural land and with food prices increasing, maybe the land is better used for agriculture.