Please expand on that theory.
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Okay, you asked. 
Forgive me if I wade into the weeds.
Here in the US we are taxed on every inch of land at its âbest useâ rate, so vacant lands near any kind of community, used by riders with landownersâ permission (not a default, must be in writing for horse use because of our litigious culture) can be taxed as if they contain commercial or private buildings â whatever the current zoning allows. Many rural-ish places have planning boards with anti-zoning agendas, so the tax assessor has unbelievable power. Landowners take a huge risk allowing riders on their open land, and often pay huge amounts for the pleasure.
Here in the West, neighbors have gone to war over fence lines, gates, wandering livestock, and thatâs not even addressing the bazillion acres owned by the American People, known as Federal Bureau of Land Management land, that leaseholders (keyholders, really, since in my neighborhood anyway they keep everyone else out â a controversial yet common practice) graze their cattle on for fractions of pennies per acre. (Listen to both seasons of Bundyville, the podcast for a deep dive.)
For instance, I have 20 acres of open land, both pasture and woodlot, in Maine and I must actively maintain its so-called tree-growth status in order to maintain its lower, no-buildings, rate. My neighbors know they can cross it or even hunt the odd turkey in the woods, and that Iâm not super psyched about snowmobilers doing donuts next to the horse paddocks, but itâs not clear for anyone new to the area, so most people tend to stay off.
As I understand, the system common in most of the British Isles is different in a few important ways. n.b. This may have changed somewhat since I studied it in depth 20 years ago.
- Most property taxation is building-based. Land may be taxed, but generally at a markedly lower rate. IOW, no special arrangements or covenants are required to establish an intention to leave land open and accessible.
- The default approach to open land is walkers and riders can cross it as long as they stay on paths and/or do no damage â i.e. keep gates closed, etc. In Scotland, itâs called the Right to Roam. Itâs the reason riding holidays can take people across Wales and England without fear of being arrested for trespassing. (In the US, they might be shot.)
- As @Willesdon mentioned, the notion of village/town integrity is paramount in the UK and the EU, as I understand it. That is, new development, neighborhoods, homes, and businesses must link up to existing infrastructure. Here in most of the rural US, anyone can buy a few acres of land almost anywhere and install a septic tank, well, power source, and do with it pretty much as they please.
- While UK, Scotland and Ireland riders may struggle to educate horse-ignorant drivers about horses on the roads, Iâd argue that horses are a much more familiar roadside (or middle of the road) sight than here in the US. Yes, there are cultural, classist, tensions, as there are here, but eight years ago, the Guardian estimated that there are 12 horses per 1000 people in the UK. If I did the math right from this old-ish data, the US had around 14 horses per 1000 people in 2016. We sure donât see them on the roads, here, though, since we have 35 times the landmass.
Also, Iâm sorry this is so long, as I donât have time to make it shorter. Unsurprisingly, I have more to say on this topic, but must do some actual work, first.
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They say on the internet, if you want to find the answer to something donât ask a question, state something incorrectly â so I hate falling into this clichĂ©, butâŠ
As a Tax Assessor, I think our power is incredibly misrepresented by this post. We have very little power. Our assessed values are driven by the market, because we are by law required to assess a piece of property within the threshold of fair market value. This is a US wide mandate, not unique to each state. Every year, we must establish new values based on properties that have sold in our municipality. Every year, these new values must be vetted and proofed by the DOR. If the DOR does not agree with our values, we cannot publish them, which means the budget cannot be established, which means no new tax rate can be established. Itâs very serious business and no Tax Assessor ever is just pulling numbers out of nowhere.
Regarding the Planning Board â the Tax Assessor has zero jurisdiction over the PB and in most municipalities I have worked for, the two have very differing views on bylaws and future[s] of the town. They are rarely cohesive cohorts.
If a piece of land assessed at 200k is bought for 1 million dollars, that means the market said it was worth a million dollars, and yes, the assessment goes up next year.
Vacant, developable land should be taxed as if it is developable land - you donât get a break just because it doesnât have a building on it. Itâs prime real estate, itâs valuable, and people will pay money for it.
Those who own large plots of land for recreational use typically file for Chapter 61B - which means that their land is not assessed at its highest and best use (typically development) but instead assessed as what we typically refer to as âunbuildable backlandâ. The rate varies from state to state (or even town to town - an acre in Boston would have a higher value than Wendell, by example) This is not the only tax-relief associated program out there for land owners who allow recreational (or equestrian) use - you can also file for a Conservation Restriction with deeded public access.
Most farm-owning/large-acreage owning people are savvy to their municipalityâs tax relief programs and file 61A/B accordingly. I know very few large tracts of land that are not in some sort of program.
My local huntâs territory is in Chapter 61A or 61B. Some of it is even part of a local state park.
One more quibble - you mentioned commercial properties. Vacant land will not be taxed as if commercial on general principle â but commercial properties can have vacant land. Municipalities with driving development typically have a split rate tax rate. In small townships a separate commercial tax rate is rare (because it is detrimental to small businesses), but in places where there is encroaching development and lots of commercial activity, most municipalities adopt a split rate tax rate, which shifts some of the taxpayer burden onto commercial properties and typically has a much higher tax rate.
In MA, where I am employed, if you want the Chapter 61 reduction, yes, you need to prove you are actually maintaining forestry. The whole entire point of that program is to allow tax relief for entities who are preserving forestry and open land. You[g] shouldnât get a tax break if youâre not putting in the work.
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@sami-joe That was very interesting. Iâve never before considered taxation in relation to horse population or equestrian sport. Indeed, in the UK buildings are subject to tax, not the land they stand upon. Sometimes there is a debate about whether a land-based tax system would be fairer for the general population because the people who own a lot of land still tend to be the wealthiest ones. We retain a cultural preference for a nice country estate once the money has been made in biotech or music or insurence or making cordless vacuum cleaners. Charlie Watts, the The Rolling Stones drummer, was a highly respected Arab breeder on his estate in Devon.
But business rates are worked out by square meterage so if a barn has an indoor arena and twenty stables in a shed row, the cost can be very high. It puts immense pressure on riding schools, which are considered to be businesses and donât get any tax breaks even as the BHS campaigns on their behalf. If the same facilities are âwithin the curtilageâ (inside the boundaries) of a private property for private use, they are not taxed in the same way.
Goodness me, the wells of knowledge on COTH.
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I am in Virginia. My land is taxed at the agricultural rate (about half the residential rate) because I have a conservation easement filed with the county. I do not know if that is part of â61A/Bâ or something else.
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Does anyone know how Wabbit got his name? I know his registered TB name is Molinaro Kissing. Just curious how he got to become âWabbitâ - its so cute! Was so pleased to see him and Jessica do so well.
(Also really did not want Oliver to win. Was routing for Vitali!). Overall great competition. Sure was a weekend of Equestrian gluttony what with the European Showjumping Championships on as well!.
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Has everyone seen this? Not sure how I got it to open, I am not at all sure I have an account on Instagram. Well, it wonât load. I can see it but it is coming up as a still. It is on EN though
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It is also on the Defender Burghley facebook page!
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He also has one for On Cue but I havenât seen it posted anywhere.
The one for Tsetserleg edits out the hold on course. I wish they would have left it in so you could hear the discussion with the officials.
I really hope the organizers from both Kentucky and Maryland really study the live stream from Burghley. It was awesome. They had every jump covered and some from multiple angles. You didnât get the dead air of staring at trees or the crowd like you so often get watching Kentucky. And the price was awesome - $25. Iâve been spending time going back and watching different segments.
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Jessie has herâs posted on her social media As mentioned - super easy to watch the whole thing!
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yeah they really do know how to do this up right. They did do a fabulous job! It was easy to sign in too. that is usually the biggest headache when you are struggling with the computer at 2:00 am!
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And seriously delightful to watch. Such a nice trip for them! They made it look easy in a way few do.
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how do I find her ride?
Not sure if this will work but this is the one I saw (not the best quality because it was someone recording from a TV):
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Thank you for your kind corrections. You are right; I was too glib in my description of a tax assessorâs power. I am sorry.
My experience with individual assessors has been spotty. Circa 2002, my wasband, a particularly large and scary dude with several of weapons in the house (hence his wasband-ness), refused to allow the assessor for our small Maine fishing village into our home. The young accountant-type man was only allowed access to the one giant space that had not been renovated, as well as the attached, uninhabited 1B 1BA garage apartment. If the current Zillow assessment (I double-checked with the town listing, too) is anything to go by, the property is being assessed at far less than half of its value. I understand fully that you can only go on what information you can gather, but from my armchair quarterback spot, it seems occasionally a little random.
As for the planning board and taxation, in New England, yes, they are two worlds. However, here in California, land and power are one and the same. Just today a friend and I drove by a section (one mile square) of former agricultural land (berries, salad greens, broccoli, i.e. fast turnover, highly labor-intensive crops) being graded and mounded into a neighborhood practically overnight. We both said, âHoly crap!â
Yes, we desperately need housing. This is rich ag land, and yes, I do not know enough about California ag taxation, for sure, that this property is being developed for housing bums me out. All I can do is cross my fingers for multifamily affordable units, when Iâm fairly certain weâll see McMansions where I once saw baby arugula in the next 18 months.
As for my own tree growth/open land designation, I do what I can to maintain pastureland in its historic place, and encourage tree growth in its approximately seven-acre section. Luckily, that includes mostly benign neglect in the woodlot and twice-annual bush-hogging in the open country, both of which I can manage for the time being.
Having lived in six states covering four regions of the country, I would argue all day every day that New England is better governed than any other area in the union, so please, please keep on keeping on. Thank you for your devotion to public service.
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This is fascinating, especially the word âcurtilage.â
Here in the USA, big time horse owners and breeders with savvy accountants can use the losses inherent to the industry to offset incomes and thereby lower their taxes. It doesnât mean theyâll let strange horses jump their fences or travel across their property, though.
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Iâm probably going to be shot down in flames so best I put my fire retardant suit on.
I am a proud kiwi, thereâs no doubt about that, but I just feel the last 10 years weâve only succeded as a team at the detriment of others. It seems the majority of teams that finish on the podium, start as they mean to go on, whereas weâre on the back foot and playing catch up.
Iâm old enough to remember when the Kiwiâs won everything and TeamGB never made a showing. There are a few NZ young riders appearing in Britain but not as many as in the past. You do, of course, have The All Blacks who seem to be able to flatten most other teams, so all is right in the universe.
There were not many nationalities running at Burghley this year. No Germans, French, Japanese and not may Irish.
.
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Continuing on the tangent of US vs UK land management and taxation, it is my understanding (and I havenât LIVED in the UK since I was 2) that, in the US, most people who own houses also own the land on which it stands. But in the UK (particularly âin townâ) it is very common for the homeowner to own the house, but not own the land (very long term lease). That puts yet another twist on âtaxing landâ vs âtaxing buildingsâ. (And, just to clarify, in the US BOTH land AND buildings are taxed.)
Also, I think the very large network of public footpaths, bridleways, and permissive paths in the UK (see https://en.wikipedia.org/wiki/Rights_of_way_in_England_and_Wales ) make a big difference in riders being able to easily ride outside the arena.
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