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Land Used for Agriculture |
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What Land Qualifies?
Taxpayers may qualify for agricultural
productivity valuation under two different laws. The newer law is called "open-space valuation" or
"1-d-1 appraisal" (after Article 8, Section 1-d-1 of the Texas
Constitution). Both individual and
corporate owners are eligible under this provision if the land is used for a
qualified purpose. Nearly all land that receives productivity valuation is
under this law.
An older law -- known as "1-d" or
"agricultural use" appraisal -- is available only to individual
owners who derive the majority of their income from farming or ranching.
For "1-d-1 appraisal," the land must
meet the following:
The land must be devoted principally to
agricultural use. Agricultural use
includes production of crops, livestock, poultry, fish or cover crops. It also can include leaving the land idle
for a government program or for normal crop or livestock rotation. Land used for raising certain exotic animals
(including exotic birds) to produce human food or other items of commercial
value and cutting wood for use in fences or structures on adjacent agricultural
land also qualifies. Land which has
been receiving agricultural productivity valuation may qualify as wildlife
management land provided it is used in at least three of seven specific ways to
propagate or maintain a population of indigenous wild animals for human
use.
Timberland must be used with the intent
to produce income and be devoted principally to the production of timber.
Both agricultural land and timberland
must be devoted to production at a level of intensity that is common in the
local area. The chief appraiser, with
input from an agricultural appraisal advisory board composed of local
agricultural and timber producers, determines the level or degree of intensity
applicable to each type of agricultural or timber use.
The land must have been devoted to
agricultural and/or timber production for at least five of the past seven
years. However, land within the city
limits must have been devoted continuously for the preceding five years, unless
the land did not receive substantially equal city services as other properties
in the city.
If your land qualified for agricultural
appraisal and you change its use to a non-agricultural use, you will owe a
rollback tax for each of the previous five years in which your land received
the lower appraisal. The rollback tax
is the difference between the taxes you paid on your land's agricultural value
and the taxes you would have paid if the land had been taxed on its higher
market value. Plus, 7-percent interest
is charged for each year from the date that the taxes would have been due.
The chief appraiser determines if a change to a
non-agricultural use has been made and sends a notice of the change. If you disagree, you may file a protest with
the ARB. You must file the protest
within 30 days of the date the notice was mailed to you. The ARB decides your case.
If you don't protest or if the ARB decides
against you, you owe the rollback tax.
How to File for Agricultural Appraisal
1.
Get an application form at the appraisal
district office.
2.
Fill out the form completely and return it to
the appraisal district office after January 1, but no later that April 30. Remember, making false statements on your
application is a criminal offense.
3.
If your property is valued by more than one
appraisal district, you must file an application in each appraisal district
office. If you don't you could end up
paying taxes on your property's full market value to one or more taxing
units. This occurs when your property
is located in a taxing unit that is also in a neighboring county. Contact the appraisal district if you aren't
sure.
4.
If you need more time to complete your
application form, submit a written request to the chief appraiser before the
April 30 deadline. The chief appraiser
can grant up to 60 extra days if you have a good reason for needing extra time.
5.
If you miss the April 30 deadline, you may file
an application any time before the appraisal review board approves the
appraisal records (usually about July 20).
However, in such a case, you will be charged a penalty for filing late. The penalty is 10 percent of the tax saving
you obtained by getting agricultural appraisal for your land. Once the appraisal review board approves the
records, you can't apply for agricultural appraisal for that year.
6.
If the chief appraiser asks you for more
information, you will have at least 30 days to reply. You may ask for more time but you must have a good reason. If you don't reply the chief appraiser must
deny your application.
7.
If the chief appraiser denies or modifies your
agricultural appraisal, he or she must tell you in writing within five
days. This notice must explain how you
can protest.
8.
Once you receive agricultural appraisal, you
don't have to apply again in the following years unless your qualifications
change. However, the chief appraiser
may request a new application to verify that you still meet the
qualifications. If you get a notice to
reapply, be sure to do so. If you
don't, you will lose your eligibility.
If you become the owner of land that is already qualified, you must reapply
in your own name by April 30. If you
don't you will lose your eligibility.
You must notify the appraisal district in writing by April 30 if your
land's eligibility changes. Failure to
do so results in a penalty charge.
9.
The agricultural appraisal is based on an
estimate of the typical annual income during the five-year period preceding the
year before the appraisal. The
agricultural appraisal may change annually based on this income and the
capitalization rate.
Application for Brazoria County
Ø Application for 1-d-1
(Open-Space) Agricultural Appraisal
Ø BCAD Agricultural Use Questionnaire
Degree of Intensity Standards for Brazoria County
The chief appraiser is required by law to
develop "degree of intensity" standards for each type of agricultural
production in a given county. These
standards reflect the practices that are typical for producing various kinds of
crops or livestock.
Ø
2005 Brazoria County Appraisal District AG
Requirements