|
LAND USED FOR AGRICULTURE |
|
|
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
· Application for 1-d-1 (Open-Space) Agricultural Appraisal
· 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.
·
Brazoria County Appraisal
District AG Requirements