Agricultural and Timber Exemptions - Texas Comptroller of Public Accounts Wed love the opportunity to work with you! Neither an exemption certificate nor an ag/timber number is required to purchase these items tax-free. This means agricultural landowners will have their property taxes calculated based on productive agricultural values, as opposed to market value of the land. If you decide to appeal your previous property tax bills, we can assist in the same way. Farm machines, trailers and semi-trailers used primarily (at least 80 percent of the operating time) for farming and ranching, including the raising of poultry and use in feedlots, are exempt from motor vehicle tax. be primarily dedicated to agricultural use, such as the production of crops, livestock, poultry, fish, timber, beekeeping, etc. In Texas, value is assigned to certain properties based on their agricultural or timber productivity value rather than on market value. With an ag exemption, your property taxes are calculated based on the appraised productivity value - which can lead to significant savings. How to Qualify for AG Exemption in Texas Some of the core criteria you need to fulfill to be eligible for farm credits or tax exemption is: You must have used your property for at least 5 out of the last 7 years for agricultural purposes. Ag exemptions are only for land that is primarily being used for agricultural purposes. According to the state, the initiative is expected to save agricultural landowners between 20 percent and 75 percent in property tax payment each year, depending on the size of their holdings. These include seed, animals, feed, chemicals (fertilizers and pesticidesm), machinery and parts, and repairs. All rights reserved. Throughout the States, there are six primary tax exemptions that you qualify for as an agricultural producer. New and renewed ag/timber numbers are good until December 2019, and registrants will be required to renew their numbers at that time.
