Do I qualify for an ag/timber number to purchase eligible items tax free? Kennels or other animal boarding businesses. Hunting and fishing operations, including aerial hunting Horse racing, boarding, training or trail rides įlorists or similar retailers who maintain plants before sale Teaching an agricultural vocational course. Growing plants for sale in a commercial nursery Ī veterinary business that makes farm or ranch calls Timber production (including contract logging) Ĭrop dusting (as defined by 14 CFR Section 137.3) Your business type must be listed below to qualify for tax exemption on certain items or for an ag/timber number.įarming or ranching for the purpose of raising agricultural products for sale If you do not have a valid ag/timber number, you must pay tax to retailers on your purchases. If you are a farmer, rancher or timber producer engaged in one of the activities listed below, you qualify for tax exemption on the purchase of certain items used to produce your agricultural and timber products for sale.Īll purchasers, including non-Texas residents, must have a valid agricultural and timber registration number (ag/timber number) issued by the Comptroller to claim exemption from Texas tax. Counties we have worked with seem to be using “orchard values” on the property once it goes into AG, which means thousands of dollars in tax savings for you.One of the most common questions I am asked here in Parker County is: "Is this ranch land ag exempt?" If the answer is no, the follow up is, "How do I become Ag Exempt?" Who Qualifies for Agricultural and Timber Exemptions? BUT, if you have HIGH property taxes now, you will likely be VERY pleased with the new valuation. The Ag valuation savings number is different for everyone depending on what county you are in and how many acres you have and your land values, of course. Either take a homestead exemption or be working on AG, not both at once on the same acreage. No ‘double-dipping’ with your exemptions. Keep in mind as you are working AG, you won’t qualify for the homestead exemption on those extra acres, so your taxes will be higher until you achieve AG. The remainder of land (minimum of 5 acres) will be to start the new AG valuation. If you live on the land and have your house and homestead there, you will need to set aside approximately 1 acre of the land for your house/homestead. Frame Inspections WHAT ABOUT MY HOMESTEAD EXEMPTION? Each county appraisal district sets their own rules for eligibility, so be sure to talk with your county appraisal district and to stay current with rules year to year. That means you utilize the land in beekeeping for 5 years in a row and the 6th year your taxes will go down if you meet all the requirements for your county. AG use is required for 5 of the last 7 years in order to begin receiving the lower valuation. You may be able to buy or lease bee colonies to keep on your land and lower your property taxes. 23.51 – (2) “Agricultural use” includes but is not limited to the following activities: ….”The term also includes the use of land to raise or keep bees for pollination or for the production of human food or other tangible products having a commercial value, provided that the land used is not less than 5 or more than 20 acres.” 5-20 ACRES OF LANDĪmount of land required and you must not live in a subdivision that has restrictions against bees or AG usage. Texas Tax Code: Chapter 23, Subchapter D. Or maybe you want cute little goats, like I did, until my husband told me to “google: GOAT ON CAR”! Not my car, no thanks! Now we keep bees and we can help you get started with an amazing hobby or part-time business! STATE LAW CHANGED IN 2012: BEES DON’T NEED FENCES! And that’s just one advantage of using beekeeping for AG valuation instead of raising cattle on your 5-20 acre parcel.
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