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#5619992 - 02/25/15 01:21 PM Ag Exemption
Carlos B Offline
Outdoorsman

Registered: 11/07/14
Posts: 61
I've been thinking of buying some raw land, something around 10 acres to spend some time during the weekend and set up a feeder and possibly do some hunting on the land. I'm looking somewhere around South Texas as close to Houston as possible.

One concern, among many others, is applying for the Ag exemption. How tedious and difficult is the process? What is there that I should look into and know before buying some land?

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#5620011 - 02/25/15 01:30 PM Re: Ag Exemption [Re: Carlos B]
cabosandinh Offline
Pro Tracker

Registered: 08/12/13
Posts: 1159
Loc: Dallas, TX
if not already in Ag Ex, will take 5 yrs to get Ag Ex

each Co is different, call them, they'll let you know the min. of livestock
you need: 1 cow, 13 goats, 3 pigs etc ...

if you have good coastal you can do hay or lease to grazing (10 might be too small )

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#5620041 - 02/25/15 01:41 PM Re: Ag Exemption [Re: cabosandinh]
tlk Online   content
Pro Tracker

Registered: 07/25/13
Posts: 1987
if you get it though the other advantage is being exempt on sales tax on anything related to the property. that one can be done online very easily
_________________________
You can't fix stupid

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#5620086 - 02/25/15 02:00 PM Re: Ag Exemption [Re: Carlos B]
cameron00 Offline
THF Trophy Hunter

Registered: 01/08/09
Posts: 8203
Loc: Texas
You need to check before buying, because as mentioned, 10 acres is too small to just cut hay in some counties.

You'll have to actually have an Ag use. One of the things I've seen done is plant an orchard, but again, each county stipulates the upkeep requirement around that.

Easier to just buy a place that already has it in place. Sometimes land is carved out of larger parcels or previous owners have gotten the exemption on a big place for grazing, hay, etc, and it's still categorized as such when it's parceled out small by the county.

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#5620174 - 02/25/15 02:49 PM Re: Ag Exemption [Re: tlk]
Carlos B Offline
Outdoorsman

Registered: 11/07/14
Posts: 61
Originally Posted By: tlk
if you get it though the other advantage is being exempt on sales tax on anything related to the property. that one can be done online very easily


But that's once I have gotten the AG exemption correct?

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#5620177 - 02/25/15 02:51 PM Re: Ag Exemption [Re: cabosandinh]
Carlos B Offline
Outdoorsman

Registered: 11/07/14
Posts: 61
Originally Posted By: cabosandinh
if not already in Ag Ex, will take 5 yrs to get Ag Ex

each Co is different, call them, they'll let you know the min. of livestock
you need: 1 cow, 13 goats, 3 pigs etc ...

if you have good coastal you can do hay or lease to grazing (10 might be too small )


Definitely did not know that.

I really want a piece of land, worst comes to worst, I'll pay the property taxes but first I need to do how much that is. I already own a home, so I'm not in a position where I can pay for another property's taxes if they run in the thousands like my current home.

Thanks everyone for your feedback.

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#5620198 - 02/25/15 03:00 PM Re: Ag Exemption [Re: Carlos B]
cabosandinh Offline
Pro Tracker

Registered: 08/12/13
Posts: 1159
Loc: Dallas, TX
Originally Posted By: Carlos B


Definitely did not know that.

I really want a piece of land, worst comes to worst, I'll pay the property taxes but first I need to do how much that is. I already own a home, so I'm not in a position where I can pay for another property's taxes if they run in the thousands like my current home.

Thanks everyone for your feedback.


outside of Houston, just use a 2% Tax as a base

Assuming:
$3000/ac x 10 = $30,000; 2% tax = $600

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#5620286 - 02/25/15 03:39 PM Re: Ag Exemption [Re: cabosandinh]
Carlos B Offline
Outdoorsman

Registered: 11/07/14
Posts: 61
Originally Posted By: cabosandinh
Originally Posted By: Carlos B


Definitely did not know that.

I really want a piece of land, worst comes to worst, I'll pay the property taxes but first I need to do how much that is. I already own a home, so I'm not in a position where I can pay for another property's taxes if they run in the thousands like my current home.

Thanks everyone for your feedback.


outside of Houston, just use a 2% Tax as a base

Assuming:
$3000/ac x 10 = $30,000; 2% tax = $600



It came out close to what I got using the County's tax rates. But your formula was way easier.
nidea

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#5620455 - 02/25/15 04:49 PM Re: Ag Exemption [Re: Carlos B]
stxranchman Offline
Obie Juan Kenobi

Registered: 08/04/10
Posts: 52092
If the property does not have 5 yrs of AG taxes then you will have to spend 5 yrs of having AG income to get it. If it has 5 yrs of AG taxes then you might be able to change to Wildlife. It will really depend on the county you buy in and how the set their guidelines. I had a buddy who owned 22 acres northwest of Houston who had a place that had ag exmeption....the county made him run 10 cows just to keep the exemption. He usually had to feed the cattle in dry times and it got expensive for him. Still had the cheaper taxes and cattle income but it was costly out of pocket for the return he got. 10 acres in South Texas will not be that great of hunting if every place is that small around you. Finding 10 acres for that price close to Houston will be next to impossible.
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#5620472 - 02/25/15 04:59 PM Re: Ag Exemption [Re: stxranchman]
tlk Online   content
Pro Tracker

Registered: 07/25/13
Posts: 1987
I bought 44 acres of raw land for investment purposes but leased the grass to a guy running a few cows and horses on it. I have held the property 7 years and began selling off parcels of it - I have 12 acres left. Saved me a fortune in taxes. But when it sells if the buyers changes use they have to pay rollback taxes on it.

And yes it varies from county to county
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You can't fix stupid

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#5620563 - 02/25/15 05:43 PM Re: Ag Exemption [Re: Carlos B]
don k Offline
THF Trophy Hunter

Registered: 08/27/08
Posts: 9299
Loc: Bandera, Tx
Around here the stocking rate for cattle is around 30 acres per cow. In my way of thinking you are SOL unless it was originally AG. and then you lease it to who ever the original user was and do not fence it unless there is water on it. The market value on taxes are not going to break you on 10 acres.
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#5620615 - 02/25/15 06:14 PM Re: Ag Exemption [Re: Carlos B]
HS2 Offline
Woodsman

Registered: 06/26/14
Posts: 163
As others have said, the rules are different in each county. Sometimes they have them posted on the county website. One of the easiest ways to get an ag exemption is to use it to grow timber. You may want to plant it, or if it's wooded, you may not have to do anything, just say you're letting it grow timber naturally.

Most counties have a website where you can search for the property and find out exactly what the current owner is paying in taxes. As others have said, just ask the county before you pay a bunch.

In my county you have to have at least 10 acres to qualify for an ag exemption.


Edited by Humblesmith (02/25/15 06:15 PM)

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#5620757 - 02/25/15 07:13 PM Re: Ag Exemption [Re: don k]
tlk Online   content
Pro Tracker

Registered: 07/25/13
Posts: 1987
Originally Posted By: don k
Around here the stocking rate for cattle is around 30 acres per cow. In my way of thinking you are SOL unless it was originally AG. and then you lease it to who ever the original user was and do not fence it unless there is water on it. The market value on taxes are not going to break you on 10 acres.


The MV where I live will kill you on 10 acres if it is in the right place
_________________________
You can't fix stupid

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#5621516 - 02/26/15 08:50 AM Re: Ag Exemption [Re: Carlos B]
Mr. T. Offline
Pro Tracker

Registered: 11/05/14
Posts: 1625
Loc: Fort Worth - Hunt in Eastland ...
One problem you may have is that to be AG or Wildlife exempt, you have to have 10 acres, in my county. BUT, if you have a house on the property or any permanent living structure, the state will deduct (1) acre of land for that structure, so be sure that if you buy something, and ever want to put a house, etc on it, that you have at least 10 acres left.
In a nut shell, ONLY buy a piece of land that is already AG exempt, PERIOD! Or you are going to have to as, stxranchman, said, have to wait for 5 years before you can apply, and that means you are paying higher taxes for those 5 years. And to apply for wildlife exemption, where you don't have to run any cattle or raise any hay, you first have to be AG exempt.
_________________________
Ski cabin rental in Pagosa Springs.
www.pagosaspringscabin.com

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#5621597 - 02/26/15 09:37 AM Re: Ag Exemption [Re: Mr. T.]
Carlos B Offline
Outdoorsman

Registered: 11/07/14
Posts: 61
Originally Posted By: Mr. T.
One problem you may have is that to be AG or Wildlife exempt, you have to have 10 acres, in my county. BUT, if you have a house on the property or any permanent living structure, the state will deduct (1) acre of land for that structure, so be sure that if you buy something, and ever want to put a house, etc on it, that you have at least 10 acres left.
In a nut shell, ONLY buy a piece of land that is already AG exempt, PERIOD! Or you are going to have to as, stxranchman, said, have to wait for 5 years before you can apply, and that means you are paying higher taxes for those 5 years. And to apply for wildlife exemption, where you don't have to run any cattle or raise any hay, you first have to be AG exempt.


Yeah, the whole waiting five years to get approved for AG exemption is a deal breaker for me. I estimated about $1900 property taxes, so that's not too bad.

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