Buying Land

Land Q&A: Ag Exemptions in Texas

Land Q&A: Ag Exemptions in Texas

Editor’s Note: This is the second in a question-and-answer series with land real estate professionals — land agents, mortgage brokers, auctioneers, attorneys, timberland professionals and more. There’s a lot of information about the national real estate market out there, but it’s tough to find answers to your specific land real estate questions — until now. LANDTHINK believes that a lot of the stress of buying, selling, and owning land can be reduced or eliminated with some simple information from some of the best in the land industry.

Landbuyer Question:

I’m looking at picking up a little over 100 acres in Milam County, Texas, and would like to build a home in a few years. I have always been told property tax is high and would like to get an ag exemption. Do all counties in Texas allow ag exemptions and what are the requirements to apply? Also, do ag exemptions transfer when you buy land?

Jared Groce, Broker and Land Specialist at Mossy Oak Properties of Texas – Cross Timbers Land and Home Group, Gainesville, TX:

Congratulations on a wise decision to purchase land for sale in Texas! The property tax code is set by the state, so an ag exemption is available in all 254 counties.

An ag exemption does not automatically transfer to a new owner upon the purchase of a parcel of land, so a new application is required by the landowner if he/she desires to have their land in an ag exemption status. The 1-d-1 open space ag exemption requires that the new landowner fill out an application that describes what kind of agricultural processes that the land will be involved in, such as beef cattle, timber production, hay, small grain crops, etc. If the land being purchased was in an ag exemption with the previous owner at the time of the purchase, you can receive the ag exemption as soon as your application is accepted by the county appraisal district. If the land was not already in an ag exempt status, then you must wait at least five years after making application to receive the exemption.

Each Texas county has their own appraisal district office, and typically have a website that can be utilized to download the “1-d-1 (Open Space) Agricultural Use Appraisal” application or you can simply walk in the appraisal district office in the county where the land is located and fill out the application there.

Do you have a specific land real estate question for one of our professionals? Submit your question and we might choose yours!

This content may not be used or reproduced in any manner whatsoever, in part or in whole, without written permission of LANDTHINK. Use of this content without permission is a violation of federal copyright law. The articles, posts, comments, opinions and information provided by LANDTHINK are for informational and research purposes only and DOES NOT substitute or coincide with the advice of an attorney, accountant, real estate broker or any other licensed real estate professional. LANDTHINK strongly advises visitors and readers to seek their own professional guidance and advice related to buying, investing in or selling real estate.

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