ag vs wildlife exemption

[TAMU84]

I need to some help deciding if we want to keep a new piece of property we purchased (86 acres) under ag exemption or switch it to wildlife exemption. It is currently under 1-D-1. We have a small ranch in one part of the state that is strictly under ag and this new property is in another part of the state.

The main question I have is there any monetary differences. With our existing ranch we show income and expenses. Most things purchased for the ranch agriculturally are tax exempt. I believe the land taxes are deducted as an expense as well. Our CPA does our taxes so don't hold me to everything.

I was under the impression that with wildlife exemption you would have to pay sales taxes on products used. Example chemicals for spraying fence lines, shredding roads etc. I heard you also don't get a Texas Agricultural or Timber Registration number.

If you don't have income coming in with the wildlife exemption, can you still deduct items used, even if done to meet your management plan.

Also, can you deduct the taxes paid on the property?

If you can deduct everything just like an ag exemption it is a no brainer to switch this new property to wildlife exemption.

[unclefish]

Ag (1-D-1) or Wildlife Exemptions are for property tax relief for each county. You apply for this with the county.

The State Comptroller's Office has sales tax exemptions for those involved in agricultural practices when buying certain goods. You have to apply for this with the state and get a certificate.

Both of these really have nothing to do with the other.

You can have a wildlife exemption for your property taxes and still have a sales tax exemption under Ag. Two totally different things.

[Ag 89]

Ag (1-D-1) or Wildlife Exemptions are for property tax relief for each county. You apply for this with the county.

The State Comptroller's Office has sales tax exemptions for those involved in agricultural practices when buying certain goods. You have to apply for this with the state and get a certificate.

Both of these really have nothing to do with the other.

You can have a wildlife exemption for your property taxes and still have a sales tax exemption under Ag. Two totally different things.

Also, if you are asking about deducting expenses that is even a different area. You can deduct business expenses on your income taxes. Your questions would be better answered by your accountant.

[BrianL]

State sales tax: Yes it will cost you more because you will pay state sales tax. Not a big deal on smaller purchases, but for tractors, UTV, heavy equipment, it can add up in a hurry.

County Property Tax: Same wildlife as Ag

Federal income Tax: You will not get the same(if any) deductions for wildlife as Ag. It isn't a for profit. Example a tractor and equipment would be a 4 year depreciation. Depending on equipment cost and your tax bracket, that alone could easily save you $6K+/year in federal taxes. But if you aren't buying anything, or repairing anything, it won't help much.

One other thing is resale. I personally would MUCH prefer buying property that was under Ag as opposed to wildlife. It is easy to convert from ag to wildlife, but not as easy to go the other direction.

[6.5 shooter]

I’m under wildlife exemption. I pay sales tax on all the stuff I buy, even tractors.

[DUKFVR]

I’m under wildlife exemption. I pay sales tax on all the stuff I buy, even tractors.

This. We are wildlife too. I like it better than ag exemption in our case. We can control when we let it get grazed etc. We bought our place to enjoy & wanted to give the animals the best habitat we can to fawn ,nest etc with good cover.

[TAMU84]

There is so much misinformation out there. I talked to the agrilife people and was told that wildlife exemption is the same as ag exemption. Even get a card so you don’t pay sales tax. I don’t think that is true. They printed me out a lot of the information but never could find anything that was helpful

I doubt my account has any knowledge. They do a great job but doubt deal with wildlife exemptions regularly

Doing a lot of work on the place and spending money so would prefer to write off what I legally can

[Throwin Darts]

I need to some help deciding if we want to keep a new piece of property we purchased (86 acres) under ag exemption or switch it to wildlife exemption. It is currently under 1-D-1. We have a small ranch in one part of the state that is strictly under ag and this new property is in another part of the state.

The main question I have is there any monetary differences. With our existing ranch we show income and expenses. Most things purchased for the ranch agriculturally are tax exempt. I believe the land taxes are deducted as an expense as well. Our CPA does our taxes so don't hold me to everything.

I was under the impression that with wildlife exemption you would have to pay sales taxes on products used. Example chemicals for spraying fence lines, shredding roads etc. I heard you also don't get a Texas Agricultural or Timber Registration number.

If you don't have income coming in with the wildlife exemption, can you still deduct items used, even if done to meet your management plan.

Also, can you deduct the taxes paid on the property?

If you can deduct everything just like an ag exemption it is a no brainer to switch this new property to wildlife exemption.

If you already have the other property and you show income and expenses and have an Ag exempt on it I would just run everything through there.

[6.5 shooter]

There is so much misinformation out there. I talked to the agrilife people and was told that wildlife exemption is the same as ag exemption. Even get a card so you don’t pay sales tax. I don’t think that is true. They printed me out a lot of the information but never could find anything that was helpful

I doubt my account has any knowledge. They do a great job but doubt deal with wildlife exemptions regularly

Doing a lot of work on the place and spending money so would prefer to write off what I legally can

Your sales tax is governed by the Texas state comptroller. Go read it for yourself.
Wildlife exemption does not qualify.

[stickbow]

ag and wildlife exemption is for property tax only. you must be involved in commercial timber or ag business such as crops cows pigs goats etc with that you are your company then gets ag timber number to avoid sales tax have to be producing product per the state. You can write off as business expense with out but have to pay sales tax unless you have ag timber number. easy to get if you qualify just go to state web site

[brokeno]

Ag

[MikeSSS]

We changed over to wildlife exemption about 8 years ago, we just didn't want cows on on the place anymore. you will have to pay sale tax on the stuff you buy for the property. you will have to submit a wildlife management plan to the appraiser to get started and a new one every 5 years along with a annual report yearly. Kind of a pain but once you do it a few times you learn what there looking for. You'll also have submit receipts & pictures of wildlife management practices. Good luck & have fun.

[Hogmauler]

Neither one of these reduce school taxes though do they?

[Capp35]

Unfortunately you have to have an existing Ag permit to get a wildlife exemption.
You can not just skip directly to wildlife, unless the laws have changed?

[Capp35]

Also, there are people that will put Bee hives on your property to get you the Ag exemption, if you don't have livestock or farm.