#Texas ag exemption land requirements how to

The property must have had an ag exemption in the previous tax year and must be at least 10 acres. The new property owner(s) must apply for the Ag Exemption and must have owned the property on January 1 of the tax year.

#Texas ag exemption land requirements how to

How to Get Your Land an Ag Exemption in Colorado County Now the annual property tax would be calculated multiplying the $1,470 x. If this same 15 acres was classified as “Ag Exemption” based on cattle grazing (Native Pastureland as the category), you would multiply the $150,000 x $98 (Colorado County appraisal district ag value for native pastureland). Without an Ag-use or open space use, this land would normally be taxed at $1.67 x $150,000 (the appraised value in this example) resulting in a property tax bill of $2,505. Total Tax Rate for the property is $1.67/100 =. 0051ĬO Groundwater Conservation District = $0.01/100 =. In the following example we will consider a 15-acre tract of land in Colorado County appraised at $10,000 per acre, for a market value of $150,000.Ĭolumbus ISD Tax Rate = $1.15/100 =. Previously, the minimum acreage was 6 acres, which is grandfathered in, but if you sell land or pass land on to heirs, the 10 acre minimum goes into effect.Įxample of Tax Savings With Ag Use or Open Space Designations The uses are defined in the following categories. To qualify for Open Space land in Colorado County, the tract must have at least 70% to 75% agricultural use to qualify the entire tract, and must be used as such for a minimum of six months a year.

Intensity standards are derived from what is typical in the local area for the different agriculture operations. The caveat is that this is only allowed if your land is in an area with Federally Endangered Species, like the Golden-Cheeked Warbler, or the Black-Capped Verio. One way to qualify for the Open Space valuation without having to wait for five years, is to have the land devoted principally to wildlife management, as defined in Subdivision (7)(B) or (C) to the degree of intensity generally accepted in the area, regardless of how the land was used in the preceding year. 23.52 Appraisal of Qualified Agricultural Land). Instead, the taxable value is based on the productivity value of the land.

Keep in mind, both agricultural valuations have nothing to do with the market value of the land. Open Space is the most common designation. The land must have been devoted to a qualifying use for at least five of the past seven years.Īgricultural businesses may not be the principal business of the owner. The land must be currently devoted principally to agricultural use to the degree of intensity generally accepted in the area. The land may be owned by an individual, corporation or partnership. The agricultural business must be the land owner’s primary occupation and source of income. The owner must apply for the designation each year and file a sworn statement about the use of the land. The land must have been in agricultural use for three years prior to claiming the Ag Use valuation. Partnerships, corporations or organizations may not qualify. The land must be owned by a natural person. There are specific requirements that must be met to qualify for either designation as detailed below. The Open Space and Ag Use designations are special valuations that tax land on its agricultural use, or productivity value. If you would like to know how open space land and ag land designations work in your county in Texas, we will be happy to research and provide the answers. In this article, we will be discussing how Ag Use and Open Space land in Colorado County can qualify. One way to do this on vacant raw land is to have the land legally deemed as Open Space (1-d-1) or Ag-use (1-d), as described in the Texas Constitution in Article VIII, Sections 1-d and 1-d-1.

Now, more than ever, it’s important to employ property tax reducing strategies to offset the higher property values. As the low interest rate environment has continued following the Great Recession, most real asset prices have appreciated greatly, including recreational and agricultural land.