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TEXAS AG EXEMPTION LAND REQUIREMENTS HOW TO
TEXAS AG EXEMPTION LAND REQUIREMENTS REGISTRATION
TEXAS AG EXEMPTION LAND REQUIREMENTS PROFESSIONAL

Applying on PaperĪ paper application is a slower way to apply. There are 2 ways you can do this following these tips below.Īpplications typically take place between January to April of the year corresponding to your application.

TEXAS AG EXEMPTION LAND REQUIREMENTS HOW TO

How to Apply for the Ag Exemptionįinally, if you believe you meet all the criteria to qualify, then you’ll be ready to submit your application.

TEXAS AG EXEMPTION LAND REQUIREMENTS PROFESSIONAL

Of course, the process may seem complicated in the beginning, and you may want to consider engaging professional accountants or to ask your local county clerk to assist you along the way. Generally, if your tax rate is high, you can expect savings at well over 50% as your land is re-evaluated based on farmland purpose.Īs such, it may be worth applying for an ag exemption. the type of agriculture you are engaged in.

Your potential tax savings will depend on several factors, including: Thus, many farmers may begin to wonder if it’s even worth the hassle. Is It worth Applying for the Ag Exemption?įor many small-scale farmers in Texas, applying for an ag exemption may feel like a hassle, as you’ll have to go through various leaps and bounds to qualify. It’s also worth noting that this list is non-exhaustive and may be subject to change. If you have registered your business with the Texas Secretary of State, you may also have to provide your SOS file number to qualify for an ag exemption. This number must be issued by a valid comptroller to certify that you can be exempted from taxes imposed by the county.

TEXAS AG EXEMPTION LAND REQUIREMENTS REGISTRATION

You must have a valid agricultural registration number.

You must be a farmer or rancher raising chickens for sale.

Two miniature horses or donkeys = One animal unitĬhickens may be considered animal units, depending on how they are used:.

One cow, calf, or horse = One animal unit.

Animal units are subjected to the breakdowns below:

One animal unit per 5 to 10 acres of agricultural land.

You must have agricultural land of 10 acres or more.

If you’re interested in applying for an ag exemption in Texas, here are some of the requirements you’ll need to first meet: What Are the Requirements to Apply for an Ag Exemption in Texas? While the process is not overly complicated, there are a few things you should consider before you go on. Now that you’re aware of what the ag exemption is, perhaps you’ll be interested in applying. Things to Consider Before Applying for the Texas Ag Exemption For example, you may have to own a certain amount of land or raise your animals solely for the purpose of sales. There are a variety of prior requirements that a farmer must meet before they qualify for the ag exemption. As such, farmers will have to apply for the exemption during a set period in a year and wait for a valuation from the authorities before benefiting from the new valuation. However, not everyone may be eligible for the ag exemption. Instead, it’s a different way of calculating property values which leads to lower valuations and thus a lower property tax. Technically, this is not a different tax rate for farmers. Depending on the market value and type of valuation requested, farmers who qualify will typically see significant tax savings. The Ag exemption is a property evaluation in which a farmer can have their land appraised based on the land’s capacity to produce agricultural goods.

Is It worth Applying for the Ag Exemption?įirst, let’s first clarify what the Agriculture Exemption is.

What Are the Requirements to Apply for an Ag Exemption in Texas?.

Things to Consider Before Applying for the Texas Ag Exemption.

Do note, that this quick overview does not constitute professional advice, and you are advised to contact an accountant, lawyer, or your county clerk. In this article, we’ll guide you through what the ag exemption is and how your agricultural land lay qualify. You will be required to meet some basic requirements which we will discuss below.

you sell eggs or meat for a profit and you have obtained the necessary permits from the relevant authorities. The question is: do keeping chickens qualify me for the ag exemption? You may well qualify depending on the number of hens and their use.Ĭhickens may be eligible for the Ag exemption, provided they can genuinely be considered an integral part of an agricultural business. This exemption allows you to be placed under a different valuation method and consequently enjoy tax savings.Īs is common for tax schemes, you will have to meet certain conditions, like having to own a certain number of acres or a designated number of animal units to qualify for the exemption. If you live in Texas or you’re considering starting a new life in Texas, you may have heard of the ag exemption that could save you some coin.