I lost our Agricultural exemption this year because of change of ownership. I know someone is running sheep or goats on it but I can’t figure out who it is. 280 acres undivided. Marathon has held the lease for 50 years. Any ideas on getting the exemption back?
The most accurate way to get an answer for your questions is to call the county appraisal district and ask them. You can also request documentation. All records (except a few special exemptions) of an appraisal district are public record. Most I’ve encountered are very responsive to the taxpayer who ultimately pay their salaries.
The protest period is currently underway. Do you own part of the surface? Mineral interests do not have exemptions that I am aware of at least in Texas.
We own 280 acres surface and a small percentage of the minerals. The appraisal district told me they needed to see animals on the ground and meet with the folks who are grazing them. I don’t live close by Upton County so its difficult for me to find a solution to this. It’s been Ag Exempted for fifty years until now.
Maybe call the persons leasing from you to find out?
Better get some goats out there fast.
1 Like
I agree with Mr Love you need to file a protest ASAP. You may be hit with a severe penalty for rollback taxes and it will be a huge hit. This forum is primarily for royalty issues. Not surface issues . File a protest then get expert help for ad valorem tax consultants.
If you miss the deadline for protest, there is no recourse available.
I agree with Mr Love you need to file a protest ASAP. You may be hit with a severe penalty for rollback taxes and it will be a huge hit. This forum is primarily for royalty issues. Not surface issues . File a protest then get expert help for ad valorem tax consultants.
Below is some additional reading . If you miss the deadline for protest, there is absolutely no recourse available.
(Tips for getting your Ranch or Land ready to Sell)**
The Texas Constitution authorizes two types of agricultural productivity appraisals, 1-d- 1 and 1-d, named after the section in which they were authorized. Texas land can qualify for a special appraisal (1-d-1 appraisal) if it is has been (1) used for agricultural for five of the preceding seven years and is currently devoted principally to agricultural use as defined by statute, (2) used to protect federally listed endangered species under a federal permit, or (3) used for conservation or restitution projects under certain federal and state statutes. The land must also be used for agriculture to the degree of intensity generally accepted in the area. The value of the land is based on the annual net income from a typical lease arrangement that would have been earned from the land during the five-year period preceding the year before the date of appraisal by an owner using ordinary prudence in the management of the land and the farm crops and livestock produced or supported on the land, including income received from hunting or recreational leases. Most land owners apply for the 1-d-1 appraisal.
Under 1-d appraisal, the land must have been used for this purpose at least three years and the owner must be an individual versus a corporation, partnership, agency or organization. The land must also be the owner’s primary source of income.
Penalties in the form of a rollback tax, or the difference between the taxes paid under productivity appraisal and the taxes that would have been paid if the land had been put on the tax roll at market value, will be imposed if qualified land is taken out of agriculture or timber production.
A rollback tax occurs when a land owner switches the land’s use to non-agricultural. These rollback taxes under 1-d-1 are based on the five tax years preceding the year of change. Under 1-d appraisal, the rollback extends back for three years.
Texas law allows farmers and ranchers to use land for wildlife management and still receive the special appraisal, but the land must be qualified for agriculture use in the preceding year. Land under wildlife management must also meet acreage size requirements and special use qualifications. Also read about Beekeeping and Wildlife Exemptions.
The deadline to apply for productivity appraisal is April 30. If the last day for the performance of an act is a Saturday, Sunday or legal state or national holiday, the act is timely if performed on the next regular business day. Owners of land qualified as 1-d must file a new application every year. Owners of land qualified as 1-d-1 need not file again in later years unless the chief appraiser requests a new application.
This topic was automatically closed after 90 days. New replies are no longer allowed.