Johnson County TX Ag Exemption
Your Guide to Agricultural Tax Benefits
This Article is Part of Our Guide on the Ag Exemption in Texas
In Johnson County, Texas, landowners engaged in agricultural production have the opportunity to reduce their property tax obligations through what is commonly known as an agricultural exemption. This exemption is not a removal of taxes but rather an alternative method of assessment that can lower the tax burden on farmers and ranchers. Property qualified under this exemption is evaluated on its ability to produce rather than its market value, a system known as productivity appraisal.
The rationale behind the agricultural exemption is to support and preserve farming and ranching activities that are vital to the Texas economy. It recognizes that the agricultural industry operates with different margins and economic pressures than other property types. Therefore, this tax relief is essential for producers who might otherwise struggle to maintain their livelihood due to the weight of property taxes on the open market value of larger expanses of land.
However, securing an agricultural exemption requires adherence to specific criteria and the submission of appropriate forms. The Johnson County Appraisal District provides guidelines and necessary documentation for property owners seeking to take advantage of this exemption. As tax laws and exemption details can change, it is crucial for property owners to stay informed about the latest requirements and deadlines, such as the need to renew certain numbers related to agricultural and timber exemptions.
Overview of Agricultural Exemptions in Johnson County
In Johnson County, Texas, agricultural exemptions provide significant property tax relief for landowners engaged in agricultural production. These exemptions are not outright deductions but rather involve the appraisal of land based on its agricultural use value, rather than its market value. This method stems from provisions in the Texas Constitution, specifically sections known as 1-d-1 and 1-d.
Agricultural Use Appraisal
1-d-1 Appraisal: For land to qualify, it must be primarily used for agriculture or timber. The land use must also adhere to regional intensity standards. Property owners must apply using Form 50-129.
1-d Appraisal: This classification is less common and carries different requirements and benefits.
Application Process Property owners in Johnson County are required to submit specific forms to the county's appraisal district to receive the agricultural valuation. Essential forms include:
50-129: Application for 1-d-1 Agricultural Use Appraisal
50-162: Appointment of Agent
50-283: Owner’s Affidavit of Evidence
Eligible Activities
Crops: Yields vary by year and locality.
Horticulture: May require operations to be wholesale and involve a production plan. A minimum acreage is often necessary.
Hay Production: Standard practices and typical yields are accounted for in the evaluation process.
The government of Johnson County plays a crucial role in administering property tax assistance through these exemptions. It is important for landowners to understand the application details and maintain compliance with the standards set by the Texas laws to benefit from these exemptions. Compliance ensures landowners pay taxes more reflective of agricultural use rather than potential market value, thereby reducing their tax burden and supporting Texas's agricultural economy.
Eligibility Criteria for Agricultural Exemptions
In Johnson County, Texas, property owners seeking an agricultural exemption must satisfy specific requirements to demonstrate that their land is being used primarily for agricultural purposes. The criteria ensure that genuine agricultural activities receive the benefit of tax exemptions.
Primary Use: The land must be principally dedicated to agricultural use, which encompasses activities such as producing crops, livestock, poultry, and fish.
Historical Use: For wildlife management to qualify for the exemption, the land must have been in agricultural use the prior year. This establishes a continuity of use that supports the exemption's agricultural premise.
Size Requirements: The land must meet certain acreage size requirements. These are predetermined standards that consider the viability of the land to sustain the designated agricultural activity.
Special Use:
Agricultural appraisal status requires the land to be actively engaged in an agricultural endeavor, not merely holding for non-agricultural purposes.
Landowners must demonstrate an active commitment to maintaining the health of the land through practices like cover cropping.
Timber Exemption: When it comes to timber, landowners may apply for a separate exemption, which follows a different set of criteria including obtaining an Ag/Timber Number.
By meeting these standards, landowners in Johnson County can engage in responsible agricultural and land management while benefiting from the county's agricultural exemption policies. This supports not only the individual landowner but also contributes to the larger agricultural economy of the region.
Application Process for Ag Exemption
Farmers and ranchers in Johnson County, Texas, seeking property tax relief can apply for an agricultural exemption, commonly referred to as "Ag Exemption." The process begins with acquiring a registration number.
Step 1: Application for Registration
Applicants must first apply for an agricultural and timber registration number (
Ag/Timber Number) through the Texas Comptroller of Public Accounts.
Step 2: Obtain the Necessary Forms
The following forms are required:
Application for Texas Agricultural and Timber Exemption Registration Number (AP-228)
Texas Agricultural Sales and Use Tax Exemption Certification (01-924) (PDF)
Texas Timber Operations Sales and Use Tax Exemption Certification (01-925) (PDF)
Step 3: Submission to the Appraisal District
Completed forms should be submitted to the Johnson County Appraisal District:
Address: 109 N. Main St., Cleburne, TX 76033
Contact: 817/648-3000
Step 4: Review of the Application
The appraisal district will review the application for the tax exemption. Supporting documents or additional information may be requested.
Step 5: Exemption Certificate
Once approved, property owners will receive an exemption certificate which must be used when purchasing qualifying items to receive the tax benefits associated with the Ag Exemption.
Property owners should maintain accurate records and remain acquainted with expiration dates and re-application procedures for the Ag/Timber Number. They must also report any changes to the usage of the land to the Johnson County Appraisal District to ensure compliance and continuation of the exemption.
Types of Agricultural Operations
Johnson County, Texas, provides various categories for agricultural exemptions, with each type of operation having specific qualifying criteria. These exemptions are critical for the financial sustainability and proper management of agricultural and land-use operations.
Farming and Ranching
Farming in Johnson County encompasses the production of a wide range of agricultural commodities, including traditional row crops, vegetables, and fiber crops such as cotton. Ranching refers to the raising and breeding of livestock, primarily for meat, wool, or other animal products. This sector is the foundation of the county's agrarian economy and often meets the degree of intensity required for agricultural exemptions.
Timber Production
Timber production involves the cultivation and harvest of trees for their wood. In Johnson County, an operation must use the land for timber, aligning with the area's accepted standards of intensity. Landowners engaging in timber production may be eligible for 1-d-1 agricultural appraisal provided they adhere to the county's guidelines.
Commercial Fish Farms
Commercial fish farm operations in Johnson County raise fish for sale and must adhere to legal and industry standards to qualify for tax exemptions. These operations contribute to the county's agricultural diversity, and they must be managed efficiently and sustainably to maintain eligibility for exemptions.
Feedlot Operations
A feedlot operation in Johnson County is an agriculturally zoned area where livestock are fed and grown until they reach market weight. Feedlots are a crucial component of the agricultural industry and must comply with a specific set of management practices to qualify for respective exemptions within the region.
Each of these operations plays a vital role in the agricultural landscape of Johnson County and has specific requirements to comply with the law for tax exemptions and appraisals.
Agricultural Education and Future Farmers of America (FFA)
Agricultural education programs, including 4-H and the National FFA Organization (formerly known as Future Farmers of America), play a critical role in preparing young individuals in Johnson County, TX, for a future in agriculture. These programs offer a variety of vocational courses and training designed to foster skills necessary for success in the agricultural sector.
4-H offers hands-on learning experiences for youth in areas of science, healthy living, and food security, nurturing the next generation of leaders and innovators. FFA complements these efforts with a focus on leadership through its comprehensive approach to student development. FFA members engage in a range of activities, from competitive events to community service, learning to lead and manage agricultural projects.
FFA Focus Areas Description Leadership Development of assertive agricultural leadership. Career Success Guidance in intelligent career choices in agriculture. Personal Growth Enhancement of self-confidence in their agricultural pursuits.
Agricultural vocational courses, often conducted in concert with FFA, prepare students with practical knowledge and the introduction to the technological advancements in agriculture. This education is critical in a state like Texas, where agriculture plays a pivotal role in the economy and the day-to-day lives of its citizens.
Through a combination of classroom instruction and experiential learning, programs like FFA and 4-H are essential in shaping competent, confident agricultural professionals well-prepared to uphold the legacy of Texas' rich agricultural heritage.
Conservation Efforts and Wildlife Management
In Johnson County, TX, landowners take active roles in the stewardship of their properties through wildlife management and conservation efforts. These initiatives help maintain ecological balance and support biodiversity.
Wildlife Management: Landowners in Johnson County can pursue a wildlife management property tax valuation, enabling them to keep an agricultural tax rate while focusing on conservation. This incentive not only benefits the landowner financially but also encourages the preservation and enhancement of wildlife habitats.
Key Practices:
Habitat Control
Erosion Control
Predator Management
Providing Supplemental Supplies (Water, Food)
Making Census Counts of Wildlife Populations
Conservation: Conservation strategies are implemented to ensure that natural resources are used sustainably. Johnson County promotes the following:
Sustainable Use: Residents manage land to preserve ecosystems.
Education and Awareness: Sharing knowledge about the importance of biodiversity.
Regulatory Framework: The Texas Tax Code acknowledges wildlife management as a qualifying agricultural practice. This means that land managed for wildlife to a certain intensity is appraised based on its productive value under Section 1-d-1.
Compliance: Landowners must adhere to state guidelines and may be required to submit an annual report detailing their wildlife management activities to maintain the tax valuation.
By combining tax incentives with conservation responsibilities, Johnson County leverages a pragmatic approach. Property owners are positioned as custodians of the land, fostering a harmonious environment for both agriculture and wildlife.
Additional Benefits and Responsibilities
When engaging with the agricultural exemption in Johnson County, TX, landowners must be aware of both the tax advantages and the specific obligations that accompany this privilege. Careful adherence is necessary to maintain exemption status and optimize fiscal responsibilities associated with commercial agricultural services.
Taxation and Rollback Taxes
Property owners in Johnson County benefit from property tax reductions when their land qualifies for an agricultural exemption. However, they also assume the responsibility of maintaining the land's agricultural use to uphold this status. Should the land use change, rollback taxes can be imposed. This means that the county may collect the difference between taxes paid on the land's agricultural value and the taxes that would have been paid if the land had been taxed at its higher market value. The rollback can cover up to five years of tax difference, plus interest.
Rollback Tax Trigger Events may include:
Change of land use away from agriculture
Sale of the property with non-agricultural intent
For entities such as a commercial nursery or veterinary business, maintaining accurate records of their exclusive agricultural use is essential to prevent rollback taxation from taking effect.
Commercial Agricultural Services
Commercial services that are related to agriculture, such as custom harvesting, crop dusting, and livestock veterinary services, not only support the local farming community but also contribute to the broader viable agricultural economy. Providers of these services often enjoy tax benefits; however, they must be used solely for qualifying agricultural or timber production to retain these benefits.
For example:
Custom Harvesting and Crop Dusting services must be utilized on qualified agricultural properties.
A Commercial Nursery selling plants primarily for ornamental purposes may not qualify, as opposed to one selling plants used in the production of food or other agricultural commodities.
Veterinary Businesses must cater to commercially raised livestock or work with farmers to protect the health of their livestock and maintain their production capacity to qualify as exempt from certain taxes.
Each of these entities plays a pivotal role in maintaining the agricultural infrastructure and must meet specific operational guidelines to benefit from tax exemptions.
Community Participation and Agricultural Awareness
In Johnson County, Texas, agricultural exemptions have fostered a strong bond between citizens and the farming community. Exemption certificates are important tools that enable farmers to operate viably by reducing their property tax liabilities. The community takes part in educational programs to understand how the local agriculture, which includes raising livestock such as sheep and chickens, benefits from these exemptions.
Local social media platforms, particularly Facebook, serve as hubs for sharing information and promoting awareness about agricultural practices and benefits. These forums facilitate discussions on optimization of the agricultural exemption process and ensure a wide dissemination of knowledge.
Agricultural awareness extends to understanding the requirements for maintaining property tax reductions. For instance, feed suppliers in Johnson County play a crucial role by providing necessary essentials to livestock farmers, who depend on the accessibility and affordability of feed to maintain healthy flocks and herds.
Kennels are another focus, as they must meet specific guidelines to partake in the exemptions. The county actively encourages kennel owners to participate in agricultural programs, which enhances community involvement and contributes to the local economy.
By leveraging agricultural exemptions, Johnson County not only empowers its farmers but also educates its residents. They understand the symbiotic relationship between the agricultural sector and the wider community, highlighting the significance of these benefits to their mutual growth and sustainability.
Local Regulations and Contacts
Navigating the agricultural exemptions in Johnson County, Texas, requires knowledge of local governmental regulations and the appropriate entities to contact. Property owners must adhere to specific criteria to qualify for exemptions and be aware of key contacts within local cities and tax authorities to maintain compliance.
Johnson County Cities and Contacts
Cleburne
Address: 109 N. Main, Cleburne, Texas 76033
Phone: (817) 648-3000
Property owners in Johnson County can contact the County Appraisal District for information on agricultural exemptions. The Chief Appraiser and their team provide guidance on property tax reductions for qualifying farmlands.
Texas Comptroller and Franchise Tax
Texas Comptroller of Public Accounts
Contact: Agricultural/Timber Exemption
Renewal letters are mailed out in August to the address on file.
Agricultural and Timber Exemption numbers must be renewed before December 31, 2023.
Franchise Tax and Frequently Asked Questions (FAQs):
WebFile: The Comptroller's electronic reporting system is available for managing tax responsibilities, including franchise taxes.
Questions about WebFile and franchise taxes can be directed to the comptroller’s office through their official website or helpdesks.
Property owners and businesses must remain informed about Franchise Tax obligations through the Texas Comptroller's office, ensuring eligibility for exemptions and compliance with state tax laws.
Resources and Additional Information
The following resources provide essential guidance and additional reading for anyone seeking information on agricultural exemptions in Johnson County, TX. Accurate and up-to-date, these materials include contact details for tax assistance, links to vocational courses, and necessary software for accessing documents.
Agricultural Exemption Resources
Johnson County Appraisal District: For immediate assistance and detailed information on property taxes, the appraisal district offers resources specifically for agricultural property tax relief. They are located at 109 N. Main, Cleburne, Texas 76033, and can be reached by phone at 817/648-3000.
Future Farmers of America (FFA) members may find this resource useful for understanding how agricultural education intersects with practical tax benefits.
Texas Comptroller of Public Accounts: They provide a comprehensive guide on what qualifies for agricultural and timber exemptions. This includes courses related to agriculture that may offer vocational insights into managing farm and ranch property taxes efficiently.
Their website lists specific qualifications for exemptions and outlines the exemptions process.
Required Software: To view and fill out necessary tax exemption forms available in PDF format, Adobe Acrobat Reader is recommended. This software is free to download and essential for anyone handling their exemption documents electronically.
Additional Reading and Software
Texas Ag Exemption Guides: Various guides and resources are available for those who wish to delve deeper into the specifics of Texas Ag Exemptions, such as the guide provided by Dr. Blake Bennett, an Extension Economist. These materials are invaluable for ranchers and farmers navigating the exemption process.
Property Tax Assistance: The Texas Comptroller's office also offers property tax assistance to guide taxpayers through the process of applying for exemptions. They offer materials that are clear and aimed at assisting taxpayers in understanding their rights and responsibilities regarding agricultural exemptions.
Online Courses: Agricultural vocational courses often contain modules that provide a better understanding of tax exemptions and financial management for agrarian businesses. These courses frequently update their curriculum to reflect current tax laws and exemptions strategies.
Tax Forms and Renditions: For easy access to required tax forms and renditions, the Johnson County, Texas website provides downloadable forms that can be filled out with the assistance of Adobe Acrobat Reader.
This includes various exemption forms, such as the Charitable Organization Property Tax Exemption and Residential Homestead Exemption.
Understanding the resources available can provide substantial savings and ensure compliance with local tax laws. These resources are specially designed to support the agricultural community in Johnson County.
Frequently Asked Questions
What is the agricultural sales tax exemption in Johnson County, TX? Farmers and ranchers in Johnson County can apply for a sales tax exemption on agriculture and timber products. This helps lower the cost of supplies that are necessary for their operations.
Who can claim the agricultural sales tax exemptions? Individuals engaged in producing agricultural and timber products such as crops, livestock, poultry, and even exotic animals may qualify for the exemption.
How does one apply for the ag/timber number? Applicants need to complete a registration process through the Texas Comptroller of Public Accounts to obtain an ag/timber number.
Does the ag/timber number expire? Yes, it does. Currently held Ag/Timber numbers expired on Dec. 31, 2023. Holders need to renew their number to maintain exemption on eligible purchases.
Can a property tax reduction be obtained for farms and ranches? Yes, Texas farmers and ranchers can apply for property tax relief through a productivity appraisal, which could reduce taxes based on the land's ability to produce agricultural products.
What if one disagrees with the value of their property? Property owners in Johnson County who disagree with the assessed value of their property have the right to file a protest with the Johnson County Appraisal District.
Contact Information and Support
For agricultural producers in Johnson County, Texas, seeking information on agricultural exemptions and support, precise contact information is essential. It ensures access to necessary forms, guidance on application procedures, and clarifications on qualifications for agricultural exemptions.
Appraisal District Contact
The Central Appraisal District of Johnson County is responsible for property appraisal for tax purposes and handles agricultural exemptions. Interested parties can reach out to them at:
Address: 109 North Main Street, Cleburne, Texas
Phone: (817) 648-3000
Business Hours: 8:00 a.m. to 4:30 p.m., Monday through Friday (except holidays)
One can obtain productivity appraisal information and application forms directly from the Appraisal District.
State Government Support
The Texas Comptroller of Public Accounts offers support for agriculture and timber exemptions. Notably, all Ag/Timber numbers held by proprietors expired on December 31, 2023. However, renewals are handled by the Comptroller’s Office, which dispatched renewal letters in August 2023.
Entities needing to renew their number or seeking support can contact the Comptroller's Office through:
Website: Texas Comptroller of Public Accounts
Mailing Renewal Concerns: Advise to check mailing address on file for renewal letters
This state-level support is critical for continued exemptions on qualifying agriculture and timber purchases.
