Mills County TX Ag Exemption
Navigating the Application Process
This Article is Part of Our Guide on the Ag Exemption in Texas
In Mills County, Texas, agricultural (ag) exemptions are a crucial part of the property tax system, offering significant savings to landowners utilizing their property for agricultural purposes. To qualify for an agricultural appraisal, which can lower the property taxes, the property owner must demonstrate that the land meets certain criteria and standards set by the Texas Comptroller of Public Accounts. The process involves providing evidence of the land's use to the chief appraiser at the Mills Central Appraisal District.
The chief appraiser is responsible for assessing all properties within the jurisdiction, including the determinations of agricultural appraisals. Landowners seeking an ag exemption must adhere to guidelines which require the land to be primarily used for agricultural purposes such as farming, ranching, or wildlife preservation. This specialized valuation can significantly affect the tax obligations for the property owner.
For assistance with agricultural exemptions or any related queries, the Mills Central Appraisal District office is the point of contact. The office, located at 901 6th Street, Goldthwaite, TX, maintains specific hours of operation for the public. Landowners are encouraged to reach out during these hours either in person or through the provided contact information, including the phone numbers 325-648-2253 and 325-648-3458, or via email at the official email address, for guidance on the application process for ag exemptions.
Eligibility Criteria for Ag Exemption
In Mills County, Texas, qualifying for an agricultural exemption requires adherence to stringent criteria regarding the use of land. The exemption can significantly lower the tax obligation for property owners engaged in specific agricultural pursuits.
General Requirements
Property owners in Mills County must demonstrate that their land is primarily dedicated to agricultural activities to qualify for an exemption. The following general requirements must be met:
Ownership: Applicants must own the land for which they are seeking the exemption.
Primary Use: The land must be principally devoted to agricultural use, which can include farming, ranching, or timber production.
Degree of Intensity: The agricultural activity must meet the degree of intensity typical for the area.
Time Period: The land must have been utilized for agricultural purposes for at least five of the past seven years.
Specific Types of Agricultural Use
The term "agricultural use" encompasses a wide array of activities. Specific types of use relevant to applying for an agricultural exemption in Mills County include:
Farming: Cultivation of soil to produce crop yields.
Ranching: Raising of livestock, such as cattle or sheep, for meat or fiber.
Timber Production: Growing and harvesting trees for timber products.
Wildlife Management: Utilizing the land to preserve, enhance, or create wildlife habitats.
Fishing: Supporting commercial fish farm operations to raise fish for food.
For each type of agricultural use, Mills County assessors may require additional evidence of agricultural production such as sales receipts, lease agreements or production records, ensuring that all claims for exemption are substantiated.
Application Process
The application process for an agricultural tax exemption in Mills County, TX, is a systematic procedure that requires specific documentation and adherence to the submission guidelines. The Chief Appraiser, currently Konie Carroll, oversees this process to ensure compliance with the tax code.
Required Documentation
1-d-1 Application Form: This is the primary document required for the agricultural exemption process, where the applicant must provide a detailed account of the agricultural use history.
Proof of Agricultural Use: Supporting evidence may include statements from previous owners, operators, or neighbors, verifying the use of the land.
Submission Guidelines
Mailing Address: Completed applications along with required documentation should be sent to the Mills Central Appraisal District at P.O. Box 565, Goldthwaite, TX 76844-0565.
Physical Address for In-person Submissions: Applicants preferring to deliver their documents in person can visit the office located at 901 6th Street, Goldthwaite, TX.
Compliance with Deadlines: It is crucial to submit the application within the designated time frame established by the Chief Appraiser's office to ensure the tax exemption is granted for the applicable year.
Applicants are encouraged to direct any queries regarding the application process to the Mills Central Appraisal District to ensure accurate and timely filing.
Benefits of Ag Exemption
Mills County, Texas, offers agricultural exemptions, known informally as ag exemptions, to landowners that significantly reduce the burden of property taxes. These exemptions are not direct tax cuts but involve valuing land based on its agricultural use rather than on its market price. This special appraisal could immensely reduce property taxes due to the often lower productivity value versus market value.
Obtaining an ag exemption brings concrete fiscal advantages:
Reduced Taxable Value: Property normally appraised at market value is instead assessed on the agricultural value, leading to a lower taxable amount.
Potential for Lower Taxes: With the agricultural appraisal, landowners in Mills County may pay less in property taxes, preserving more of their income for other uses.
Eligibility for the ag exemption requires an active engagement in agriculture and, upon qualification, the issuance of an Ag/Timber Number. This number is essential for accessing exemptions not just on property taxes but also on certain purchases related to agricultural production. It exempts qualifying items from sales tax and grants tax exemption on:
Farming equipment
Machinery
Certain types of animal feed
It's important to note that the ag exemption applies specifically to agricultural production and is regulated by stringent state guidelines. Landowners are encouraged to understand the criteria fully and maintain the required standards of land use to keep this beneficial status.
Texas takes tax assistance seriously for its agricultural contributors, translating into considerable savings and continued encouragement for agricultural development in Mills County.
Agricultural Valuation and Taxes
In Mills County, Texas, agricultural land valuations are essential for property tax calculations, pertaining to farms and ranches dedicated to farming, ranching, or wildlife management. This process is pivotal for landowners to receive tax benefits reflective of the land's agricultural use.
Determining Market Value
The chief appraiser is responsible for assessing the market value of agricultural properties, ensuring it aligns with the land's capability to produce crops, support livestock, or maintain suitable wildlife management. Mills County follows the guidelines set by the Texas Property Tax Manual for the Appraisal of Agricultural Land. To qualify, landowners must demonstrate that their property adheres to state-mandated standards for agricultural productivity.
Tax Rate and Payment Information
The tax rate in Mills County is determined annually and can impact the amount of property tax owed by agricultural landowners. Once the market value is established, the appraised value is multiplied by the local tax rate to calculate the taxes due. Property tax assistance can be sought for understanding specific payment obligations and options available for the land categorized under agricultural valuation.
Rollback Tax for Change of Use
When agricultural land undergoes a change of use, it may trigger a rollback tax. This tax is 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 market value for the past five years. The chief appraiser may impose rollback taxes if land previously dedicated to farming, ranching, or wildlife management is converted to another use that does not qualify for agricultural valuation.
Management Practices for Qualification
In Mills County, TX, the agricultural exemption is primarily concerned with land usage aligned with specific, qualifying agricultural activities. For landowners aiming to achieve this exemption, it's vital to maintain practices that adhere to local standards of intensity and typicality for the area.
Farming and Ranching: Land must be primarily devoted to agricultural use, including but not limited to cultivating crops, raising livestock, and other farming or ranching endeavors. They should demonstrate a level of intensity and consistency typical for the Mills County region.
Wildlife Management: The integration of wildlife management as part of agricultural use is recognized. Practices should support habitat control, erosion control, predator management, providing supplemental supplies of water, food, and shelter, as well as making census counts to determine population.
Timber Production: For timber lands, sustainable practices of growing and harvesting that meet the five-out-of-seven-year prerequisite could qualify them for the agricultural productivity valuation.
Feedlot Operation: Operations should exhibit active engagement in the feeding and care of animals in a confined area, emphasizing the continuity and intensity that is consistent with local feedlot operations.
Crop Dusting: While not a qualifying agricultural use on its own, crop dusting supports essential agronomic practices and, as such, can be considered ancillary to qualifying farming activities.
It is essential for landowners to document their practices meticulously and ensure their operations meet the following criteria for an exemption under the Mills County appraisal guidelines:
Current Use: The land must currently be in use for qualified agricultural activities.
Principal Use: The main use of the land should be agricultural.
Intensity Level: Operations must reflect the degree of intensity typical for the area.
Duration: Agricultural use should have been consistent for at least five of the preceding seven years.
Adherence to these practices and conditions can position a landowner in Mills County to successfully attain an agricultural exemption, providing a basis for appraisal based on agricultural use rather than market value.
Additional Exemptions and Issues
In Mills County, TX, beyond agricultural exemptions, there are a variety of special use exemptions and considerations that property owners should be aware of. These cater to specific uses of land and types of property, including homesteads and special categories that align with wildlife management and certain business types.
Homestead Exemptions
Homestead exemptions in Mills County provide significant property tax relief to homeowners by offering a reduction in the taxable value. Residence homeowners may apply, and this includes individuals over 65 years of age or those with disabilities. It's important to note that while a homeowner can claim either a disability exemption or an over 65 exemption, they cannot claim both, and the over 65 exemption tends to offer greater benefits.
Other Special Use Exemptions
Mills County recognizes various special use exemptions that cater to different types of land use:
Wildlife Management: Land used primarily for wildlife preservation may qualify for valuation similar to agricultural land, promoting conservation efforts.
Veterinary Business: Properties utilized for veterinary practices, including kennels, might be eligible for specific business-related exemptions.
Educational Programs: Land used for educational agricultural programs, such as those associated with Future Farmers of America or 4-H clubs, may receive certain exemptions.
Agricultural Vocational Course: Properties utilized as part of an agricultural vocational course can also apply for exemptions.
Property owners looking to apply for any special use exemptions in Mills County should obtain and complete the relevant exemption certificate. Maintaining an accurate and compliant status involves adhering to guidelines and submitting paperwork within designated deadlines.
Legal and Regulatory Considerations
In Mills County, Texas, agricultural exemptions are subject to specific legal and regulatory guidelines. Property owners must navigate the requirements set by the Texas Comptroller of Public Accounts and ensure compliance with the Tax Code to benefit from such exemptions.
Texas Comptroller of Public Accounts
The Texas Comptroller of Public Accounts plays a crucial role by setting guidelines for agricultural use qualifications. To maintain transparency and fairness in the tax system, it provides clear definitions of what constitutes agricultural use. Operations that are agricultural in nature must adhere to these definitions to qualify for special valuation. As per the announced policy, current Ag/Timber numbers expired on December 31, 2023. Therefore, individuals must have renewed their Ag/Timber registration numbers to continue claiming exemptions on qualifying purchases post that date.
Property Tax Code Compliance
Under the Texas Property Tax Code, the Mills Central Appraisal District ensures compliance by administering property appraisals and exemptions. Property owners seeking agricultural productivity valuation and exemptions should meet the defined criteria, which:
Include: Homestead Exemptions, Over 65 Exemptions, Disability Exemptions, and Disabled Veteran Exemptions.
Exclude: Activities that do not align with agricultural standards set forth by the Comptroller's office.
Tax Code Section 23.521 specifies the land qualifications for wildlife management use, extending the special agricultural appraisal to wildlife management activities. These guidelines are pivotal to property tax assistance and are aligned with Comptroller Rules 9.2001-9.2005.
For businesses, compliance with franchise tax requirements remains separate from agricultural exemptions and is addressed through different statutes of the Texas Tax Code.
Resources and Support
Farmers and landowners in Mills County, Texas, seeking information on agricultural exemptions can find a range of resources and support. These include direct contact with the county appraisal district, guidance from the Texas Comptroller, and assistance from external agricultural agencies.
County Appraisal District Contact
Mills Central Appraisal District
Chief Appraiser: Konie Carroll
Phone: 325-648-2253
Fax: 325-648-3458
Email: [email protected]
Address:
Physical: 901 6th Street, Goldthwaite, TX 76844
Mailing: P.O. Box 565, Goldthwaite, TX 76844-0565
Office Hours: New office hours took effect starting September 14, 2020, and inquiries for current timings should be made directly.
Those seeking assistance in understanding agricultural exemptions or who need support with their paperwork can reach out to the chief appraiser and the capable staff at the district's office for informed guidance.
Texas Comptroller Resources
Texas Comptroller of Public Accounts
Offers extensive resources on the Property Tax Assistance Division's page.
Guides landowners on agricultural and timber exemptions, including a comprehensive grasp of eligibility, application processes, and renewal procedures.
Reminds that all Ag/Timber numbers that were valid until December 31, 2023, need renewal for continued exemption benefits post that date.
The Texas Comptroller’s office is a pivotal resource for up-to-date information and forms related to agricultural and timber exemptions on the state level.
External Agricultural Agencies
Local agricultural agencies also support Mills County's landowners with resources and practical advice. The sheriff's office and the extension office play a role in community outreach and can direct individuals to pertinent resources.
Sheriff's Office: Works in tandem with landowners on aspects related to rural safety and regulation enforcement relevant to agricultural practices.
Extension Office: Provides research-based information and programs which can influence exemption status and valuation like wildlife preservation and land stewardship.
Contact with these external bodies can provide ancillary support, reinforcing the information obtained from the appraisal district and the comptroller’s office.
Frequently Asked Questions
Q: What is an Ag/Timber Number and how does it apply in Mills County, TX?
A: In Mills County, the Ag/Timber Number is a unique identifier provided by the Texas Comptroller for farmers and timber operators to claim sales tax exemptions on eligible items.
Q: How can one obtain a tax exemption certificate in Goldthwaite?
A: To obtain a tax exemption certificate in Goldthwaite, one must apply for an Ag/Timber Number through the Texas Comptroller's online application system or by submitting a paper application.
Q: Who should one contact in Mills County for more information on ag exemptions?
A: The chief appraiser at the Mills Central Appraisal District office in Goldthwaite can provide detailed information and guidance on agricultural exemptions.
Q: Are there different types of tax exemptions that one can apply for?
A: Yes, individuals in Mills County can apply for various tax exemptions including property tax assistance and sales tax exemptions for agricultural and timber-related purchases.
Q: How does the 'WebFile' system factor into tax exemptions for Mills County residents?
A: 'WebFile' is an online system managed by the Texas Comptroller which allows residents, including those in Mills County, to file their taxes and claim exemptions electronically.
Q: Is there an expiration date for the Ag/Timber Number?
A: Yes, Ag/Timber Numbers do expire. Holders must renew them periodically to maintain their tax exemption status.
