A Texas Agricultural Tax Exemption can be used as a land owner uses their land for hay production, raising livestock or managing wildlife. It also can be used for hunting or have their land used as agricultural productivity. This means pastureland, mixed timber, native pasture, wildlife management or if they apply for hunting lease. There are different acreage requirements between the counties but are typically required to have at least 3 acres for goats and sheep and 20 acres minimum for cattle.
If you have land or you’re planning on buying land and you’re looking into this agricultural tax exemption there are specific requirements that you need and you must apply into different parts. If you’re looking for a timber exemption you may have exemptions on the production of agriculture and timber products for sale but you must provide the AG/timber number to the seller on the appropriate form. To obtain this number, the site requires you to register for a personal login account and then access the application, which takes about 10 minutes to complete. You will get this number at the end of your application process.
Eligible applicants are required to have engaged in the production of agriculture or timber products for sale in the regular course of business. Applicants are not eligible if they don’t do these things on a regular basis including home gardening, horse racing or certain types of wildlife management and land conservation.
Those that raise and sell cattle, sheep, goats or other agriculture or wildlife production are eligible for this but only those that actually conduct the sale. Owners that lease property to a manufacturer or an agricultural business owner are not eligible for this exemption.
If you qualify for this exemption you can reduce your annual property taxes between $2 and $4 per acre. And, just because you take this taxes option does not mean that you can’t use your items or belongings for personal use such as hunting, baling hay, build a home or cabin. However, appraisers will reevaluate any improvements that you may have made to the home and so provide this exemption as long as the property maintains its qualified use.
For more information on whether the property you’re looking to buy or sell qualifies as an agricultural tax exemption please contact me at any time.