AG/TIMBER FAQ

AG/TIMBER FAQ

What is Ag or Timber “exemption”? Ag, Timber, Wildlife & Beekeeping special use valuation (commonly referred to as ag or timber “exemption”) is a special valuation method that allows landowners to calculate their property taxes based on the productive value of their land, rather than its market value.

What kinds of special valuations are there?

Timber (Having trees on the property alone does NOT qualify, the land must be actively devoted to timber for the production of income.)

Agriculture:

            (Included but not limited to)

        –Hay Production

        -Bee Keeping

        -Orchard/Vineyard

        -Truck Crop

        -Grazing pasture

Wildlife Management

*See Intensity schedule for detailed guidelines*

Where can I find Gregg County’s degrees of intensity? Standards and Intensity Schedules for Qualifying Productive Property Valuation

What is required/do I do with my land to apply for Special Use Valuation? Property must be currently devoted principally to agriculture, timber, or beekeeping etc. use to the degree of intensity generally accepted in the area for five of the preceding seven years or if within the city limits continuously for the preceding 5 years with supporting documentation provided along with the application demonstrating a history of primary ag or timber use on the property.

Hobby farming (Horses, donkeys, chickens or small sized gardens for personal/family use), and as described by the IRS, FFA or 4-H show projects by themselves will NOT qualify.

An owner may use the land for himself, or he may lease the property to someone else.

When is the deadline to apply for special evaluation?

-On time application is due NO LATER than April 30^th of the current year.

-A late application after April 30th may be filed until the night before the appraisal records are approved by the ARB, which is normally the first or second week of July of the current year. Late application will receive a penalty of 10% on the 1^st year.

How do I obtain an application? There are a few ways to obtain an application for 1-d-1 special use valuation. You may download a blank form from the CAD website at www.greggcad.org, the Texas Comptroller of Public Accounts website at www.comptroller.texas.gov, or come by our office and get one printed. An application printed by our office for a specific property will have most of your basic property information already filled out.

Who must turn in a management plan & how do I get one? A management plan must be submitted in addition to an application for any property to be considered for timber or wildlife special use valuation. These forms may be written by a forester, a privately owned management company, or the property owner. Additionally, Texas Parks & Wildlife has PWD 885- W7000 forms that can be found on their website for wildlife management plans and assistance. https://tpwd.texas.gov/landwater/land/private/agricultural_land/

What does a good timber management plan include?

A good management plan will include but is not limited to:

-Identify the property & give a brief description of the location,

– describe the management activities the property owner has been actively participating in

– Give estimates of dates when thinning or harvesting has occurred and/ or is expected.

            – Active management practices for timber will include:

• Periodic thinning • Controlling vines from the forest floor to the treetop (this is one of the primary ways fires will spread from the forest floor up)

• Creating/maintaining fire breaks or buffer areas (these allow for decreased chances of fires spreading from stand to stand) • Pesticide & insect control

• Creating/ maintaining boundary markers • Periodic controlled burns

• Reseeding • Continued road maintenance or established right-of-way

• Select Cutting or harvests • The management plan should be signed by the preparer. • In addition to having the management plan on file, the property owner should also be following the activities described in that plan barring unforeseen events.

What does a good wildlife management plan include?

A good management plan will include but is not limited to:

– Should identify the property and give a brief description of the location

– Provide management goals and targeted species for management

– Identify which of the seven management activities are occurring on the parcel.

– Describe how specifically those management activities are being performed.

We have seen property owners:

* Install rip-rap or bull rock to slow the effects of erosion

* Pond construction or repair

* Mitigation of wetlands in some areas of the county

* Fire ant control & feral hog control qualifies as predator control. Fire ants are considered a predator as they can and will kill young, small or injured mammals

* Providing supplemental food in the form of feeders or food plots

-In addition to having the management plan on file, the property owner should also be following the activities described in that plan.

How do I know if my application is granted? The CAD does not send letters of approval, only denials or requests for more information. If you did not receive a denial, you can verify the special valuation has been added when you receive your notice of appraised value in April or contact the appraisal district.

How often do I need to reapply for my special valuation? The current reapplication cycle is every 8 years, unless the Chief Appraiser requests or the characteristic or use of the land is changed.

For wildlife management, an annual report is required to maintain a special evaluation on the property.

If you receive a request for a new application, it must be submitted in a timely manner, or the special valuation will be removed for that tax year.

Does an ag or timber special valuation transfer to a new owner? No, new owners MUST apply as new.

If the new owners recently inherited the property from a spouse or parent that used the property under a special use valuation, the property owner must provide the supporting documentation showing the property has met the statutory time test. It might not require a new application. Please contact the appraisal district if you believe you meet these requirements.  

What if I have a house on the land? The house, along with land and improvements surrounding not being used primarily as ag or timber will not fall under the special valuation.

What is the difference between native & improved pastures? Native pastures are defined as those pastures that have native vegetation, with minimal improvements. Improved pasture is defined as those pastures, with native and improved vegetation, that have had improvements made to them including but not limited to fertilizer application, weed, and brush control (mechanical or chemical) or overseeding with winter grass.

What evidence do I need to provide to prove my five-year history?

For Timber:

Including but not limited to-

*Current receipt of revenues through sale of timbers

*Contract for sale of timber

*Investments in substantial amounts of reforestation or smaller amounts if other parts of the tract are already in commercial timber

*Attempts to salvage timber that has value but that is damaged or dead

*Using forester to help manage land

*Hiring someone to conduct a timber sale

*Seeking recommendations of a public forester before making a sale

For All Agriculture Related: Minimum for 3 receipts or bill for any of the following

Including but not limited to-

*Fertilizer

*Parts/supplies

*Feed

*Photographs

*Lease contract

*Vet bills

Do horses qualify for a special valuation?

-Yes, IF land used primarily for “raising, breeding, and/or grazing horses” and other activities that are for “Farm or ranch purposes”. “Growing grass on land for the purpose of feeding animals, including horses, is an agricultural use”.

-No, IF the land is principally recreational, or as a hobby then the activity, although agricultural in nature, is not one that promotes a farm or ranch purpose.

-No, IF “the land is used primarily to show, train, stable, race, care for or otherwise divert livestock from a farm or ranch purpose”.

Will I lose my special use valuation if a drought or natural disaster occurs? No, a drought or natural disaster declared by the governor creates an agricultural necessity to extend the normal time the land remains out of agricultural production. The landowner intends that the land’s use in that manner and to that degree of intensity to be resumed when the declared drought ends.

Will I lose my special use valuation if oil and gas operations begin on my land? No, land’s eligibility for special valuation does not end because a lessee under an oil and gas lease begins conducting oil and gas operations as long as the portion of the land on which oil & gas operations are not being conducted otherwise continue to qualify for special valuation.