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    Ag Exemption Question

    We are close to signing contract on a 6acre section of land. This land is currently in ag exemption as it was a larger section. They took 30 acres and divided 5 sections into 6 acres. Will this property stay in ag if we stay in regulations with the current exemption? Also if it does not, would there be back taxes to pay for taking the property out of ag and whose liable for those taxes?

    #2
    In Brazoria county you can prove Ag for 5 out of the last 7 years, you're good.

    I would assume that your property has been Ag for the past 5 years atleast, essentially gaining you 2 years to get in compliance or lose the exemption.

    I would look into transferring the exemption status to yourself, claiming you'll do Bees or something that qualifies on small average.

    Then I would look into transferring it to wildlife exemption.

    You won't owe any back taxes that I'm aware of.

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      #3
      It does not stay ag when sold, you have to apply for ag exemption.

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        #4
        In Victoria county every new purchase has to re-apply for the exemption. If you still meet the requirements you will be good.

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          #5
          Some counties are different but where I am you have to have a certain number of acres to qualify, I want to say its 25.

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            #6
            The property we will be purchasing is on the far west side and is an end lot to the other four lotsand has three property lines currently fenced off. The realtor has offered to keep cattle on the property along with the other four lots as our east property line is not fenced and allows access to the remaining 24 acres.

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              #7
              Erath County you need to have min of 10 acres I believe.

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                #8
                Liberty county is 10 acres but you can get an ag exemption on 6 acres for bee keeping, I think here you have to have 6 hives to qualify. Something to check into if you don't have enough acres.

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                  #9
                  Call your tax office, that's where you'll get your answer.

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                    #10
                    Originally posted by Drycreek3189 View Post
                    Call your tax office, that's where you'll get your answer.
                    The above is the only way to find the correct answer.

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                      #11
                      Originally posted by Drycreek3189 View Post
                      Call your tax office, that's where you'll get your answer.
                      I figure this is the best way but I didn't want to call until I had a little TBH advice
                      I could definitely do bees, I worked for my college room mates Dad in college who runs a fairly big operation.

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                        #12
                        Originally posted by hunt247 View Post
                        Erath County you need to have min of 10 acres I believe.

                        I think most are a 10 but you better have 11 if you plan to build a house on it because they will figure 1 for the house as non ag and the rest ag. At least that is the way it has been explained to me.

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                          #13
                          In Harris County, we just acquired 2 acres that was part of an 11 acre tract. It takes 7 acres in order to claim for ag (Harris County). Since mine isn't enough, I have to pay 5 years back taxes for what the property would've appraised for had been residential with the 5th year eligible to be up to 35% interest! Thankfully it didn't go that high but still cost $3K.

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                            #14
                            If you lose the ag exemption, you could be subject to 'rollback taxes' (makeup for the difference in taxes for the previous five years). The owner when the property changes use is responsible.

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                              #15
                              Originally posted by mjhunter82 View Post
                              In Harris County, we just acquired 2 acres that was part of an 11 acre tract. It takes 7 acres in order to claim for ag (Harris County). Since mine isn't enough, I have to pay 5 years back taxes for what the property would've appraised for had been residential with the 5th year eligible to be up to 35% interest! Thankfully it didn't go that high but still cost $3K.
                              This is what I'm most afraid of and want to be prepared for!

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