Ag exemption

[Hay Dude]

There is a difference between taking advantage of available exemptions (which I agree with) and changing ones land usage after the fact merely to avoid a higher rate of taxation...

A savvy property buyer should be aware of what their taxes will be after purchase...

And why is that, I yam what I yam?? If one buys a piece of land not previously farmed, then fences it for cows or plants crops and claims AG exemptions available to him, that is changing land use age and avoiding higher rate of taxation. Perfectly normal and done all the time. What’s wrong with that?
If you have a problem with tax exemptions, go after those who wrote the tax exemption codes, not the citizens using the tax codes.
Sounds like someone has busybody syndrome. Hope thats not too blunt :laughing:

 

[the old grind]

.. Hope that's not too blunt :laughing:

Dare I say "blunt and succinct"?

 

[DieselBound]

My property, most, has reduced taxes. It's an arrangement/contract to keep my property from being parceled up and sold for "development.". If I want to do that I will face paying all the taxes that I didn't have to pay.

My use status went from Open Space Ag to just Open Space. Wasn't a big hit/change. Reason was because my property was split off a larger chunk of Ag land.

It's actually a good way to push back on development.

 

[RoyKing]

I did the same thing bough some land that been in peanut, and tobacco. However I knew I wasn't going to grow crops for sale, nor keep animals for slaughter or sale. So I went timber filled for ag exemption and they paid for most of my planting, added on years later planted it and made money on the planting, then changed the property description from two parcels into one large one, then petition about being charged for old cow fences, explained that my trees won't wander off. Recently they did a fly over and increase my ag write off size. Then added a barn and tractors all under ag. They have increase the size of land needed to qualify for timber.

 

[1930]

So can someone explain to me what I am entitled to under the Ag exempt, Im still not clear what happens when I do build residence on the property, am I still paying less taxes on the entire parcel? Also its lookin like some purchases made that directly relate to the development of the land are able to be non taxed on purchase if I were to fill out proper forms and present them to retailer upon time of purchase.

How about prior purchases, can I go back and claim them now? Ive spent literally thousands of dollars to build my farm up to this point.

Lastly I am seeing where there are allowances for equipment ( tractor/machinery ) upgrades/maintenance that may be non taxable assuming I take the extra steps.

Id really like to take full advantage of all the benefits possible to me and Id think that there would be a one single place where I could get an idea of what is available.

Thanks

 

[riptides]

Maybe a visit to your local USDA office is in order. They have all sorts of farm startup information and guidance.

Mine sit in the same building as my local tax, zoning, conservation and easements people. They actually work together and if a Fed program is unavailable may direct you to a State or Local program. And visa, versa. Works....quite well. YMMV.

So can someone explain to me what I am entitled to under the Ag exempt, Im still not clear what happens when I do build residence on the property, am I still paying less taxes on the entire parcel? Also its lookin like some purchases made that directly relate to the development of the land are able to be non taxed on purchase if I were to fill out proper forms and present them to retailer upon time of purchase.

How about prior purchases, can I go back and claim them now? Ive spent literally thousands of dollars to build my farm up to this point.

Lastly I am seeing where there are allowances for equipment ( tractor/machinery ) upgrades/maintenance that may be non taxable assuming I take the extra steps.

Id really like to take full advantage of all the benefits possible to me and Id think that there would be a one single place where I could get an idea of what is available.

Thanks

 

[Tx Jim]

As previously stated each state has their own ag tax exempt regulations. Here in Texas one must apply to state for ag tax exemption for sales tax & diesel off road tax exemption & then receive a numbered exemption form.. On land the exemption is established by each county. If land hasn't been ag tax exempt then acquiring exemption requires 5 yrs of record keeping establishing land has been utilized for ag purposes such as raising animals &/or crops on said land. Ag taxes on land reduces land taxes by around 90%. If land sells or county officials deem land hasn't been utilized for ag purposes can cause loss of ag tax exemption plus county tax official's can go back 2 yrs to collect previous yrs unpaid non ag exempt taxes. One needs ag exemption to purchase farm use license plates for road vehicles.

 

[Frankenkubota]

Good point. He痴 in the horse business, as apposed to the cattle business. I wouldn稚 know if one is worse than the other. I値l bet he will be using the manure barn as a shop long before the required manure occupancy period is over. Manure occupancy, now that sounds official.

I worked in a lamp oil factory, scented oil lamps, you have probably all seen them. First at K Mart in the 70s and 80s, then and still at Walmart. The owners were friends of the family. When I started they had just come out of bankruptcy, dead broke. As I said, close family friends. Sold the Co. In about 2000 for $180 mill! Is this a great country or what?

The smell in the lamp oil factory was overwhelming.......for the first few days and then, you just get used to it. There is what I guess is called a feed lot just N of L.A. right next to the 5. Heading N from L.A. you drop down from the grape vine on the 5 into the valley.

The smell, imho, is almost hard to describe, cow poop? I壇 start lo laugh because you couldn稚 put the windows down and if you left them up you壇 roast and the A/C even on recirculating couldn稚 stop it.

I know my buddy well, he won稚 be working anywhere near that smell.

All this talk about taxes and doing the right thing etc etc. So I知 a name dropper. My brother was, and might still be the a President of the American Association of CPAs and Accountants or some such thing. He痴 as straight as they come. In his world the taxes are more about interpretation of the code, as apposed to following the code. It痴 far from black and white. All the moneys in the grey area.

I still give him a hard hard time about the fact that accountants lobby hard to keep the tax code a virtual foreign language, so complicated you must be an accountant to understand! Medicine and law do the same. It痴 so we can稚 understand.

We have issues in this country that need serious and honest attention. Ain稚 gonna happen. The tax code, criminal and civil law, govt. education, the obesity epidemic, the addiction epidemic, and a heavily armed population, Uber wealth and poverty. Mix all that up and tell me what you get.

My bad attitude comes from seeing all this and knowing it痴 just gonna keep getting worse, or better, depends on your perspective.

If you, like me, think it痴 getting worse, than term limits. If you like what you got, keep the same rules.

Now, call your Senator and ask them about term limits.

 

[Hay Dude]

So can someone explain to me what I am entitled to under the Ag exempt, Im still not clear what happens when I do build residence on the property, am I still paying less taxes on the entire parcel? Also its lookin like some purchases made that directly relate to the development of the land are able to be non taxed on purchase if I were to fill out proper forms and present them to retailer upon time of purchase.

How about prior purchases, can I go back and claim them now? Ive spent literally thousands of dollars to build my farm up to this point.

Lastly I am seeing where there are allowances for equipment ( tractor/machinery ) upgrades/maintenance that may be non taxable assuming I take the extra steps.

Id really like to take full advantage of all the benefits possible to me and Id think that there would be a one single place where I could get an idea of what is available.

Thanks

In my state, your property tax bill is divided into 2 Assessment portions, Land and Improvements.
When you get your AG exemption, the improvements like your house, are not exempted/reduced. The land portion is reduced.
I am a farmer (with teeth) and I do not pay state taxes (6%) on farm equipment and related supplies or materials for farming. Theres a 1 page form you fill out at equipment dealer and they keep on file for subsequent purchases.
I don’t know about previous purchases.
I wouldnt think you could go back and claim a tax refund. That would be a good question for an accountant.

 

[RoyKing]

They count your driveway and the land the house sits on, I loose 1 acre for the homestead. Tax exempt for things like tractors you fill out a form at the dealer, for other stuff you need get tax exempt certificate and file annually, on your taxes you run it like any other business, there used to be a special class number for timber farming but now it is form F and fill in Timber farm.