Question Regarding Property Tax Exemptions? (Dallas, Austin: mineral rights, homes, transfer)

[CravenClan]

I have a question regarding property tax exeptions in TX and Austin. What are the exemptions regarding farming and size of land parcels? Ive heard that if you have 10 acres or more you can if growing or farming raising stock have a ag exemption that would drastically save on taxes? Austin Steve feel free to jump in anytime ha ha

[achtungpv]

I'm pretty sure to get an ag exemption, you have to have detailed records of agricultural production on the land for the past five years before it kicks in. Not sure on the parcel size requirements or head/acre requirements (if any).

[gigi927]

this should give you a good summary:

Texas Property Taxes - Savings on Agricultural Land Taxes, Agricultural Appraisal, Valuing Property, Home Taxes, Dallas Lawyer, Agricultural Land Taxes, Paying Your Taxes

[love roses]

My sister was telling me that when my grandpa bought his land in Tyler, he got some sort of exemption for letting the state come in and take trees for wood whenever they needed, although in the 30+ yrs. it's been in the family, they've only done that once. I know it sounds like a weird thing, but she says its true.

[Trainwreck20]

Ag exemptions are granted by counties, I believe. Generally, if you buy land with an ag exemption, you can maintain the AE by continuing to use the land for ag purposes (ranching, farming, usually). If it does not have an AE, then most counties require an establishment period (5 years sounds like what I have heard) before you can claim it.

Most counties do not have explicit size requirements, but they do require some demonstration that you are actually using it in ag production and do some simple land use calculations to make sure it is sustainable.

Heh, just read the article, that looks like the best summary I have seen yet . It IS very county specific in how it is enforced.

[Driftwood1]

The AG exempt is both benefical and kindof a trap. In Hays if you buy an AG Ex plot of land it is pretty simple to retain it, you do need to re-apply for it the first year you own it, but then it carries on. The tax exemption isnt interrupted BUT what alot of people overlook, is that if you decide to drop it (or by some quirk the county doesnt grant it upon re-applying) , you must pay 5 years backtaxes on the difference..

IMHO so long as you plan to run horses or cattle it can be great , especially on lg acreage.

From what our neighbors say , getting a NEW AG Exempt where there wasnt one before is much harder.
I think this had been concidered a "loophole" for years, and counties now are getting more serious about it. As long as you really do plan to have a few cows or horses or livestock (and you must sell a few here and there) it can really work out.

Many people are opting to do a Wildlife Exemption, essentially becoming your own wildlife refuge! Apparently easier to get, but a little more work to maintain..

The above posters were also correct, its county by county and enforced kindof erratically..

Hope this helps,
Cheers

[love roses]

So if my grandpa had this "tree" exemption (It may be tied to mineral rights or something...not sure) and this land is willed to his kids (they had 4 kids, so 5 acres each, although my uncle gave my dad his 5) and the land passes hands, the exemption still has to be re-applied for? And then re-applied for when my dad passes it to us? (provided he doesn't get tired of it and sell it before then).

[Trainwreck20]

I can only tell you my folks situation - they bought AgEx land and, as part of the title transfer, had to indicate that they would continue to use the land in Ag service (sheep and hay). Not sure what forms are required, but you can bet that it is like the Homestead Ex...if you don't apply for it, you lose it.

There may be restrictions on you granddad's land...I would guess that he cannot cut trees down willy nilly (if at all) since the state has the right to the timber. Might be others, not sure....