Converting to Wildlife Exemption: Don’t Lose Your Ag Exemption!
Owning rural land means that there is always something to do! It’s true, but there is nothing more important than maintaining an agriculture tax valuation on rural property. Why, you asked? Because if your property is deemed by a county appraisal district appraiser to have a higher and better use than agricultural production, say, commercial or industrial use, the the land will be given that appraisal value and taxed as such. However, you, the landowner, will never see those higher taxes as they will be deferred as long as the property remains in agricultural production. So what happens if the ag exemption is lost? At this point, many landowners wonder how to apply for wildlife exemption Texas, but there are other steps that have to happen first.
First, it means your tax rate is going up from an ag tax valuation to either a residential or commercial tax valuation. Ouch! You may also be hit with a bill for five years of back taxes at the higher rate. Double ouch!! In addition, it also means that you can not convert to a wildlife tax exemption since a landowner must have a 1-d-1 ag tax valuation at the time the apply to convert their property to the wildlife tax valuation.
If you’ve lost your ag exemption, then you’ve received the tax bill and have felt the pain. If your property has indeed had ag production on it, then it’s time to fight the appraisal district. Otherwise, you need a new plan. When you take your land out of ag production, either on purpose or by accident or by just not knowing any better, it will be taxed at it’s highest and best use, which is generally, considerably higher than agricultural use. But here is the really bad part, once your land is considered out of agricultural production, it has to be put back into agricultural production for five years before the landowner will be given the ag exemption again.
You read that right. If you have lost the ag exemption on your property then you are stuck with five years of paying non-agricultural taxes. The new five year plan will be to work on getting the ag exemption back, whether you really want to remain ag exempt or convert to the wildlife exemption in the future. The property must be devoted to an agricultural use and the operation must have a degree of intensity that is typical to the area, which is set or determined by by the county’s chief appraiser.
In short, if you’ve lost the ag exemption on your property there is no way around it, you must perform ag practices on your property for the next five years to regain the ag exemption. After maintaining your 1-d-1 ag exemption status for one calendar year, then you have the option of converting to the wildlife tax valuation, commonly referred to as the wildlife exemption. Property can not be converted from a residential or commercial tax valuation directly to at wildlife tax valuation. If you currently have an ag tax valuation on your property and want to convert to wildlife use, then contact use to find out how to apply for wildlife exemption Texas. We can help YOU enjoy YOUR property even more!