buying an AgExempt property - how to keep exemption?

[TexasVines]

wouldn't the "owner" in the case of legal descriptions for things like source of income also count a separate corporation set up to hold and work that particular piece of land which would then have 100% of the income from ag related activities

VS the way most are reading "owner" to mean an actual person

it has to be possible for a corporation to get a tax exemption because many farmers large and small are incorporated.....and at that point there is no legal way to look past a corporation to a "single individual" to see where their primary source of income is.....because by definition a corporation does not have individual owners it has share holders.....and it can often have more than one share holder.....and one could be a developer and one a farmer....and it would not be possible to use or not use one to qualify as the "owner"

[loves2read]

that could very well be true--
but the fact is that buying property does not mean that IF there was an ag exemption on that land that it will pass to the new owner (individual or corporation)
and that in some cases there can be a delay of almost 3 years when the land must be dedicated to ag use before it can qualify for an exemption...
think it depends on the county appraisal district which awards the exemption...
so can vary by county...

[DilbertDFW]

Thanks for the good agricultural exemption thread.

To clarify:

Yes to open spaces - tax code 1-d-1 where the land (not the person) is ag exempt.

Official word is AgEx requires a livestock or crop operation consistent in "intensity" with the region.

Practice shows AgEx on land with a few pet goats or a few 2 acre side yards masquerading as hay fields - on the lesser side of the "intensity" scale.

If you buy a house which barely qualifies for agex, what is stopping the county tax people from not approving your AgEx and massively increasing your property taxes?

The 1-d-1 AgEx comes with the land, but you'll have to reapply. Even if you do exactly what the sellers did with the land - could you lose the exemption and have your taxes double, triple or worse?

[cjw]

One thing to be aware of is the tax rollback when the property is no long eligible for the exemption. Once the property is no longer exempt (it sells or whatever) you may owe back taxes for 3 - 5 years, depending on the excemption. Read the rules thoroughly or consult a tax person or you may end up paying $$.

[DilbertDFW]

I researched rollback taxes - they typically apply when an owner changes the usage of the land.

Example, You can have 10 acres that was exempted and lose your exemption without paying rollback if all you did was stop agriculture and you started pay the non exempt tax. However, if you had 10 acres that was exempted and you chopped into five two acre parcels for sale - then you own rollback on the difference in taxes for the last five years because you changed the usage of the land. The person who changes the use of the land is the one responsible for rollback.

rollback is not my concern - the ability to keep, and potential to lose, an open spaces 1-d-1 exemption is my concern.

[SouthernBelleInUtah]

You should really consult a tax expert (in ag) and not strangers on City-Data. We don't have the expertise to NOT lead you astray (and neither do you, in your research).