Do You Qualify for Ag Exemptions?
One of the most important and often-discussed topics when purchasing land is Agricultural Tax Exemptions. Having the land you own or plan to purchase be Ag-Exempt can save you thousands of dollars in taxes every year, and is an incentive for many when purchasing property. Clients frequently reach out during their property search with questions on how this process works, and what the requirements are. Here, we hope to provide some insight and clarity as to some of the requirements for Texas. In addition to the general guidelines for Texas, each county has its own specifics.
In Texas, our Constitution (Article VIII, Section 1-d and 1-d-1) and Tax Code (Chapter 23, Subchapters C and D) uphold that landowners can apply for a special appraisal for certain types of land used for agricultural purposes. In an agricultural appraisal, the land is appraised for productivity of agricultural products rather than market value. In many cases this appraisal technique for qualifying land results in substantially reducing tax dollars owed by landowners involved in the agricultural industry. The Comptroller’s Manual for the Appraisal of Agricultural Land (PDF) explains in further detail the eligibility requirements and the appraisal procedures for agricultural land.
What Kind of Agriculture Could Qualify?
Common Agricultural uses may include, but are not limited to the following:
• Livestock production
• Timber production
• Crop production
• Raising of some exotic species that can be used for human consumption
• Poultry production
• Fish production
• Wildlife Management
Types of Applications
As an overview, there are several ways landowners can apply for agricultural exemptions for their land. The two-main types include the 1-d-1 “Open-Space” application and the “Agricultural Use”, or 1-d . Links to application forms and some general statements for each type of appraisal are listed below. Applications should be filed between January 1 and May 1. Guidelines below are not all encompassing, and landowners with specific questions are encouraged to visit with their county appraisal district and to look at the linked applications for more detailed information.
• Form 50-129, Application for 1-d-1 (Open-Space) Agricultural Use (PDF).
• Form 50-165, Application for 1-d Agricultural Appraisal (PDF).
If you have questions regarding your ag exemptions, give one of our land specialists a call today!
979.777.4471 | Info@ArmstrongPropertiesTX.com