![]() Her continued commitment to helping her customer find their new home or farm and ranch, are what most excite her.One of the most common questions I am asked here in Parker County is: "Is this ranch land ag exempt?" If the answer is no, the follow up is, "How do I become Ag Exempt?" Who Qualifies for Agricultural and Timber Exemptions? Having lived on a farm for over 40 years, Tonya is familiar with all aspects of the beef cattle industry, hay production, dairy cattle industry, poultry production, and row crop farming. Her tenacious attitude also served her clients for 9 years as an insurance agent for Farm Bureau in Cooper, Tx. Most people who own land with an AG Exemption know the savings and blessings of having one and how it helps in maintaining a farm or ranch.Ībout the Contributor: Tonya Bradford brings 17-plus years of experience as a real estate agent with Janet Martin Realty, assisting buyers and sellers in the Northeast Texas area. The difference in taxes can be a large amount. In the end, even though it takes extra effort, an AG Exemptions is well worth the trouble to obtain. And it does not require any work to ensure it is current or to maintain it by meeting specific requirements like an AG Exemption. Unlike an AG exemption, there is no required time period to wait. And anyone can get a Homestead Exemption on their primary home residence. Also, a Homestead Exemption gives you a specific dollar amount that is taken off the real estate assessed value. And production value tends to be a reduced amount (versus real estate worth) that will in turn, reduce your taxes. It gives the land a different value based on ag production versus a market value based on real estate worth. Also, an AG Exemption would be better labeled as a special valuation. Difference between AG & Homestead Exemptions.Īn AG Exemption is primarily for land (not a house like a Homestead) and is specialized toward agricultural use only. But on the other hand, AG exemptions are not based on market value but on productive agricultural value. In other words, their home may have been assessed as being worth $150,000 for a few years but then the fourth year, may be assessed as $190,000 even though their tax rate remained the same. Many times, when folks notice they owe more than the previous year, it most likely comes from a higher assessed market value – not the actual rate. The sum is then used against the property’s assessed market value. Then all those rates are summed up as the property’s taxes. Tax rates vary by county according to a school tax, a county tax, a hospital tax (if the county has one), a college tax (if the county has one), etc. ![]() Or you can search for your county’s requirements by going Texas Comptroller site here. ![]() You can do that by contacting the appraisal district where the property is located. However, each county has its own unique rules and requirements so be sure and check with the county where you live. Goats, sheep, bees, or other types can also meet the eligibility. But a wide variety of animals can qualify. ![]() In Texas, most people think of cattle when they imagine livestock for an AG exemption. Most counties require a minimum amount of acreage depending on the type of agriculture use.ĪG Exemption requirements vary by county, but most commonly, you’ll need at least 10 acres of qualified agriculture land to be eligible for this special valuation. And those uses include livestock, crop production, beekeeping, or similar activities. Land primarily being used for agricultural purposes for at least 5 out of the past 7 years may qualify. So what does it exactly take to get started? But the rules on those differ depending on which county the property is located. Using the land for hay production, wildlife management, raising livestock include some of the ways for eligibility of an AG valuation. And the difference between the two values can result in significant tax reductions worth hundreds or thousands of dollars. This allows your property’s taxes to be calculated based on its productive agriculture value instead of the higher real estate market value. If you are new (or even experienced) to raising livestock or producing hay, you should consider getting your land an agriculture (AG) exemption, if you do not already have one.
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