In Blake’s Farm, Inc v Armada Township (Michigan Court of Appeals, May 15, 2025), the court affirmed the Michigan Tax Tribunal’s ruling that two parcels owned by Blake’s Farm were only partially eligible for Qualified Agricultural Exemptions (QAEs) of 25.3% and 54% for 2023 and 2024. This decision underscores the tension between property rights and statutory tax exemptions, highlighting how land use impacts owners’ fiscal benefits. Blake’s Farm, operating an apple orchard alongside a restaurant, gift shop, and agritourism events, argued for a full QAE, asserting all activities were agricultural under the Michigan Right to Farm Act (RTFA). The court rejected this, emphasizing that the General Property Tax Act (GPTA) governs tax exemptions, not the RTFA, which protects against nuisance lawsuits but not tax liabilities.
The ruling clarifies that property rights to use land for diverse purposes, like agritourism, do not automatically confer tax benefits. MCL 211.7dd(d) excludes commercial structures—such as Blake’s Farm’s restaurant, parking lots, and event spaces—from QAEs, limiting exemptions to land and buildings devoted primarily to agricultural use. Unrebutted evidence, including aerial photographs and valuation calculations, supported the Tribunal’s finding that significant portions of the parcels served commercial purposes. This case illustrates that while property owners may freely develop their land, tax exemptions hinge on strict statutory definitions, potentially restricting financial relief for multifaceted agricultural enterprises in Michigan.
