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    Ag exemption for property taxes

    Anyone know how much off your taxes it is to have cattle or horses on your property and how many head you have to have to get the exemption?

    #2
    Originally posted by Austin Kade View Post
    Anyone know how much off your taxes it is to have cattle or horses on your property and how many head you have to have to get the exemption?
    You don't need any. You pay retail taxes on one acre around the house and the rest is an open space exemption.

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      #3
      This ? comes up all the time and I have seen more wrong answers than right. You need to go to the tax office in the county in ?

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        #4
        Originally posted by lameduck View Post
        This ? comes up all the time and I have seen more wrong answers than right. You need to go to the tax office in the county in ?
        X2
        I believe horses don't count?

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          #5
          Originally posted by cosmiccowboy View Post
          You don't need any. You pay retail taxes on one acre around the house and the rest is an open space exemption.
          I'm fairly sure that's not true.Farm exemption taxes you on what your farm will make not on what it is worth.It's quite a bit of difference.

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            #6
            Originally posted by lameduck View Post
            This ? comes up all the time and I have seen more wrong answers than right. You need to go to the tax office in the county in ?
            I know what I'm talking about.

            Ag exemptions are for people that make their living on agriculture as a business.

            Anyone who buys rural property is eligible for open space exemption as far as property taxes. Yes, you should talk to your local tax office but it's no big deal. They will carve out one acre around your residence and tax it appropriately but the rest of the property will be taxed at it's income producing ability which is usually really reasonable.

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              #7
              You have to have an ag exempt from previous year, I think 5 or 7 years continually to qualify for ag ex on your land.

              Someone mentioned honey bees. I do not know about that part but find out if your property has been in ag ex cycle then you shouldn't have any problem convert into your name.

              For example, my tax appraisal district in Caldwell says that I have to have 4 cattle or horse and produce calves or fawns to continue on our 32 acres. OR 20 goats and continually produce or vice versa.

              It depends on how many acres you have.

              Keep all the receipts for fence, tposts, machinery, on and on except you cannot deduct stall, barns, or anything like that. The lumbers you spent for it is not deductible.

              Interest you paid on property are tax deductible even travel trailer interest tax and maintenance on it. It's consider a second home.

              There's so many things that you can deduct from being an ag ex holder. Meet with your CPA.

              Forewarned!! Don't make your property out as a hobby, IE: hunting. It will disqualify you from tax exemptions. Be very careful with that.

              I'm still learning as I go so I am sure there's things I may be missing out on my post. Good luck. Hope it helps.

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                #8
                Originally posted by Osceola View Post
                I'm fairly sure that's not true.Farm exemption taxes you on what your farm will make not on what it is worth.It's quite a bit of difference.
                Have you done this yourself?

                I have.

                You are right to a certain extent. They look at the vacant land and establish a value on what income it could produce. It's usually extremely reasonable.

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                  #9
                  Yes I have and that is the same thing as farm exemption.

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                    #10
                    Originally posted by cosmiccowboy View Post
                    I know what I'm talking about.

                    Ag exemptions are for people that make their living on agriculture as a business.

                    Anyone who buys rural property is eligible for open space exemption as far as property taxes. Yes, you should talk to your local tax office but it's no big deal. They will carve out one acre around your residence and tax it appropriately but the rest of the property will be taxed at it's income producing ability which is usually really reasonable.
                    Yes. That's true. Oh by the way, austinkade. You may want to get an ag ex number from comptrollers office here in Austin.

                    You don't pay sales tax on things you purchase. Edit: on most things!

                    Get DBA for your ag ex # file it with ur local office and register with SOS. Secretary of State and ure in business. Then fill out for ag ex# online. Print the card out and the forms for stores you go to often such as TSC or whatever. Even HD, Lowes etc.

                    When we build house on it. The tax office will only charge you one acre for property tax, no matter what. We pay 36.00 a year for property tax but we will be billed for one acre tax when the house is built. Ag ex is really easy and simple to understand once you dive into it. I was like that recently then got my feet wet and was less complicated than I thought it'd be.
                    Last edited by Silent Assassin; 09-08-2012, 06:23 PM.

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                      #11
                      The only thing you save from being a true ag/wildlife etc, exempt is sales tax. It makes no difference on property tax.

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                        #12
                        Originally posted by cosmiccowboy View Post
                        The only thing you save from being a true ag/wildlife etc, exempt is sales tax. It makes no difference on property tax.
                        Do not go down wildlife tax exempt route. If you want to find a way to deduct on the income tax, go ag ex route. Wildlife tax code changed last Jan to the point where you can't deduct anything even for stuff you purchase for it. That's why I switched to ag ex

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                          #13
                          Originally posted by cosmiccowboy View Post
                          The only thing you save from being a true ag/wildlife etc, exempt is sales tax. It makes no difference on property tax.
                          Not true at all.Ag exemption you only pay taxes on what your place produces.

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                            #14
                            Originally posted by cosmiccowboy View Post
                            The only thing you save from being a true ag/wildlife etc, exempt is sales tax. It makes no difference on property tax.
                            Ok, we were under the impression that by someone having say 7 head of cattle on the 150 acres we have, that we're getting a small break on the taxes, thereby making it worth it to keep the cattle there. This was a working ranch before so I'm not sure if that meets the aforementioned 5-7 year time period. This is in Red River county.

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                              #15
                              Originally posted by Osceola View Post
                              Not true at all.Ag exemption you only pay taxes on what your place produces.
                              But you have to meet the qualifications for AG exempt as agriculture being your primary business. The law is pretty clear.

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