Red River County TX Ag Exemption
Your Guide to Agricultural Tax Benefits
This Article is Part of Our Guide on the Ag Exemption in Texas
Red River County in Texas offers agricultural exemptions to landowners who wish to lower their property taxes through a valuation based on the land's agricultural use. This is not a true exemption, but rather an alternative assessment that reflects the value of the property in its agricultural capacity. The process involves meeting certain criteria and submitting necessary documentation to qualify for an agricultural appraisal, potentially leading to significant tax savings for landowners who actively use their property for agricultural purposes.
Keeping abreast of the latest requirements and regulations is crucial, as there have been recent updates that affect agricultural and timber exemptions in Texas. As of December 31, 2023, all existing Ag/Timber numbers, which are essential for claiming exemptions on qualifying agriculture and timber purchases, have expired. To maintain eligible exemptions, landowners are required to renew their numbers. The Texas Comptroller’s office has been proactive in disseminating information to ensure compliance, sending renewal notifications to the registered addresses of current holders.
Red River County landowners are encouraged to gather comprehensive and authoritative information to take full advantage of the agricultural exemptions. The accurate understanding of these exemptions can be complex, but accessing relevant forms and submitting them to the Red River Appraisal District is a necessary step in the process. Properly navigating these regulations not only complies with Texan agricultural policy but also supports the economic stability of landowners in the local farming and timber industries.
Understanding Ag Exemptions
In Texas, and specifically in Red River County, agricultural exemptions (Ag Exemptions) can provide significant property tax benefits for landowners engaged in agricultural production.
Basics of Agricultural Exemption
The agricultural exemption is a form of property tax relief that acknowledges the value of agriculture to the local and state economy. This exemption shouldn't be mistaken for a tax write-off; rather, it offers a special property valuation based on the land's agricultural use, known as "agricultural appraisal."
Property tax: The standard tax assessment is based on the market value of the property, but under an agricultural exemption, the assessment reflects the land's productivity value.
Qualifications for Ag Exemptions
To qualify for an agricultural exemption in Red River County, landowners must meet specific criteria that demonstrate legitimate agricultural use of the property. These qualifications are monitored closely to ensure compliance.
Land use: The property must be primarily used for bona fide agricultural purposes, which typically include activities such as farming, ranching, or timber production.
Time requirement: There's often a minimum duration that the land must have been utilized for agricultural purposes before it qualifies.
Additional criteria: The landowner may also need to show proof of an agricultural business, such as sales records of produce or livestock, as part of the qualification process.
It's important for landowners to apply for and maintain their Ag Exemption status to continue to receive property tax benefits on their qualifying agricultural land.
Application Process
In Red River County, Texas, the application process for an agricultural exemption is structured to ensure that all requirements are met for a successful registration. The process encompasses submitting the necessary documentation, adhering to specified submission procedures, and undergoing a thorough review by the Appraisal District.
Required Documentation
To apply for an agricultural exemption in Red River County, the applicant must provide several key forms of documentation:
Application for Texas Agricultural and Timber Exemption Registration Number (Ag/Timber Number); typically, form AP-228.
Texas Agricultural Sales and Use Tax Exemption Certification, commonly known as form 01-924.
For timber operations, form 01-925, or Texas Timber Operations Sales and Use Tax Exemption Certification, is required.
These forms demand accurate information regarding the property and the nature of the agricultural or timber operations.
Submission Procedures
Applications and supporting documents should be submitted to the Red River County Appraisal District through the following methods:
Online Submission: Applicants can apply for an Ag/Timber Number online, which is a streamlined option.
Mail: For those preferring physical submission, the required forms can be sent to the mailing address of the Appraisal District.
The renewal of Ag/Timber numbers needs to occur before the expiration date, as all existing numbers expired on December 31, 2023.
Appraisal District Review
Once submitted, the Red River County Appraisal District will review the application to verify:
Current use of land: The property must be actively used for agricultural or timber operations as of January 1 of the year in which the exemption is sought.
Eligibility: Compliance with the state-mandated criteria for agricultural or timber exemptions is evaluated.
The review process is critical to ensure only qualified applicants receive the exemption. If approved, the Ag/Timber registration number is assigned or renewed, which applicants must use to claim tax exemptions on qualifying purchases for agricultural or timber usage.
Livestock and Agriculture
In Red River County, Texas, the agricultural exemption benefits those engaged in livestock raising and crop production, provided they adhere to the criteria set by the local appraisal district.
Types of Qualifying Livestock
Red River County recognizes a variety of livestock for agricultural exemptions. The term "livestock" includes the following:
Cattle: Often raised for beef production and dairy purposes.
Sheep and Goats: Valued for wool, milk, and meat.
Poultry: Chickens are a primary source, producing eggs and meat.
Horses: Generally for working purposes on a farm or ranch.
Exotic Animals: Those raised for commercial value, which also includes exotic birds.
Agricultural Practices and Crops
The agricultural exemption extends to different farming practices and the cultivation of various crops. Integral practices and crops include:
Crop Production: Encompasses the cultivation of regional staple crops.
Cover Crops: Utilized for soil preservation and to enhance fertility.
Idle Land: Land set aside for government programs or crop/livestock rotation.
Crop Type Examples Staple Crops Hay, corn, wheat Cover Crops Clover, rye
These practices ensure the sustainability of farming operations while optimizing land use for agricultural productivity.
Wildlife Management
In Red River County, Texas, agricultural landowners can take advantage of tax benefits through wildlife management use, combining conservation efforts with land stewardship.
Wildlife for Tax Purposes
In Red River County, to qualify land for wildlife management use, it must first be eligible for either Chapter 23, Subchapter D (1-d-1) Agricultural Appraisal or Subchapter E Timberland Appraisal. This qualification necessitates the land to be employed for a sustaining breeding, migrating, or wintering population of indigenous wild animals. Landowners must actively use the land through a minimum of three out of seven wildlife management practices, which include:
Habitat control
Erosion control
Predator control
Providing supplemental water
Providing supplemental food
Offering shelters
Conducting census counts for wildlife
Conservation and Land Use
The pursuit of wildlife management on agricultural property serves as an approach to conservation while allowing the land to retain its agricultural tax valuation. Landowners are not only incentivizing the protection and propagation of native species but also contributing to broader environmental benefits. Practices can vary depending on the type of wildlife the landowner wishes to support, which may include:
Fish:
Creating or maintaining water bodies for habitat.
Farming and Ranching Activities:
Integrating wildlife management with these activities to promote biodiversity.
Boarding:
Managing habitats to provide shelter and resources for various species.
The active management strategies employed ensure the sustainable utilization of land and contribute to the conservation of Texas's natural resources.
Timber Exemption Details
In Red River County, TX, timber producers are afforded certain tax benefits under state law. These exemptions are specifically designed to support the timber industry by reducing the financial burden of tax on timber-related activities.
Qualifying for Timber Exemption
To qualify for a timber exemption, producers must actively engage in the production of timber products intended for sale. They are required to hold a valid agricultural and timber registration number (ag/timber number) issued by the Texas Comptroller's Office. As of the knowledge cutoff in 2023, all previously held ag/timber numbers had expired on December 31, 2023. Timber producers were expected to renew their numbers to maintain their exemption eligibility.
Key Points:
Must actively produce timber for sale.
Hold a valid ag/timber number.
Managing Timber Land for Tax Benefits
Timber land in Red River County may receive a special appraisal based on the property’s productivity value rather than market value. This appraisal approach benefits timber producers by potentially lowering the property taxes owed. To capitalize on these tax benefits, land management must focus on the sustainable production of timber as a primary use.
Requirements for Special Appraisal:
Property used primarily for timber production.
Sustainable land management practices in place.
Advantages:
Lower property taxes based on productivity value.
Support for sustainable timber production.
Tax Rates and Rollback
The agricultural exemption in Red River County, Texas, affects property tax calculations and potential rollback taxes when changing land use from agricultural to non-agricultural.
Current Tax Rates
In Red River County, TX, current tax rates are applied to the appraised market value of property unless it qualifies for an agricultural exemption. Properties under agricultural use significantly benefit from reduced rates, leading to lowered tax liability based on the land's agricultural value rather than its market value.
Understanding Rollback Taxes
Rollback taxes in Texas are assessed when a property previously granted an agricultural exemption changes its use to a non-agricultural one. The taxes are recalculated for the current year plus five previous years based on the difference between the taxes that were paid on the agricultural value and what would have been paid based on the property's higher market value. Additionally, Red River County would apply an added interest charge, which was historically at 7 percent, to each year subject to the rollback. However, recent Texas legislation has modified these interest rates.
Sales Tax Exemption for Agriculture
In Red River County, Texas, agricultural producers have the opportunity to benefit from sales tax exemptions on various items used in the production of agricultural goods for sale. These exemptions can significantly reduce the costs associated with agricultural operations.
Eligible Agricultural Items
Agricultural equipment and inputs such as machinery, feed, and supplies that are used exclusively on a farm or ranch to produce agricultural products for sale are eligible for sales tax exemption. The items eligible include, but are not limited to:
Machinery such as tractors and plows
Feed for livestock
Seeds and plants
Fertilizers and pesticides
Agricultural tools
The exemption is valid only if the items are used directly in the production process and not for personal use or other non-agricultural business activities.
Applying for Exemption Certificate
Agricultural producers in Red River County must apply for an exemption certificate to take advantage of the sales tax exemption. The process involves:
Obtaining a Texas Agricultural Sales and Use Tax Exemption Certificate (Form 01-924)
Having a valid Ag/Timber Number, which serves as confirmation of the exemption eligibility.
Producers must present this certificate to the seller at the time of purchase to receive the exemption. It is the producer's responsibility to ensure that the certificate is up to date and to retain records of all transactions using the exemption.
Resources and Assistance
Farmers and landowners in Red River County, Texas, can access a variety of resources for information and assistance regarding agricultural exemptions. These resources are provided by both the Texas Comptroller of Public Accounts and the local county offices to ensure the accurate and beneficial use of agricultural and timber exemptions.
Texas Comptroller Resources
Glenn Hegar, the Texas Comptroller of Public Accounts, oversees a comprehensive range of resources assisting individuals with agricultural and timber exemptions. The Comptroller’s office handles the renewal process for Ag/Timber numbers, which are essential for claiming exemptions on qualifying purchases. To avoid any disruption in exemptions after December 31, 2023, it is important for holders to renew their numbers.
Property Tax Assistance: Offers guidance on various exemptions, including agricultural appraisals.
Franchise Tax: Although typically associated with businesses, information about exemptions related to agriculture can be found.
Motor Vehicle Taxes: Information regarding agricultural-related exemptions for vehicle taxes.
Frequently Asked Questions (FAQs): A dedicated section on the website to help answer common queries.
Webfile: An online service available for taxpayers to file their claims electronically, which may require Adobe Acrobat Reader.
Contacts for further assistance:
Phone: The Comptroller's helpline
Fax: For sending documents securely
Connect: Ways to engage with the office through various channels, including social media and email.
County Resources
The appraisal district of Red River County offers resources specific to the region's agricultural exemption needs.
Agricultural Appraisal: Information on how property is valued based on its agricultural use rather than market value.
Forms and Documentation: Local forms like the 1-d-1 (Open Space) Ag Exemption can be obtained either online or directly from the district office.
County Tax Assessor-Collector: The county official can assist with local tax matters related to agricultural properties.
The appraisal district's staff is available for assistance, and they can be reached through:
Phone: A direct line to the office for inquiry and support.
Fax: For submitting necessary documents regarding exemptions and applications.
Farmers and landowners are encouraged to utilize these resources for advice and support in managing their exemptions effectively.
