Shackelford County TX Ag Exemption
Navigating Tax Benefits for Agricultural Land
This Article is Part of Our Guide on the Ag Exemption in Texas
Shackelford County, located in the state of Texas, offers agricultural tax exemptions to qualifying landowners engaged in agricultural or timber production. These exemptions provide financial relief by reducing the tax burden on property and certain purchases related to farming and forestry. Landowners must obtain an agricultural and timber registration number known as an Ag/Timber Number from the Texas Comptroller of Public Accounts. This registration is essential for landowners to take advantage of the tax benefits available under the state's agricultural exemption program.
To utilize these exemptions during purchases, landowners must present a valid agricultural exemption certificate specific to either agriculture or timber. These certificates ensure that sales tax is not charged on eligible items that are used exclusively in the agricultural or timber operations. The process is designed to support the agricultural community by acknowledging the essential role that farming and timber production play in the local economy and the broader state of Texas.
Shackelford County offers various forms and requires additional documentation such as a driver’s license to support the application for the homestead exemption. Landowners may also need to complete affidavits under certain conditions to qualify for exemptions. The county’s commitment to facilitating these tax benefits reflects a broader state policy encouraging agricultural and timber industry success while providing an economic incentive for landowners to continue investing in these vital sectors.
Understanding Ag Exemptions
Agricultural exemptions in Shackelford County, TX, offer significant property tax relief to qualifying landowners. These "ag exemptions" are not outright tax eliminations but rather a special form of property tax assessment that values land based on its agricultural use, rather than its market value.
In Texas, an agricultural appraisal can substantially lower the taxable value of a property, considering factors like the degree of intensity and proper land use. To qualify, landowners must demonstrate that their land actively supports agricultural activities, such as farming, ranching, or timber production.
Eligibility Criteria:
Land Use: The land must be utilized primarily for agricultural purposes.
History of Use: There should be a history of agricultural use for at least five of the preceding seven years.
Application: A valid application must be filed with the local appraisal district.
Impact on Property Tax:
Valuation Method: Agricultural appraisal uses productivity value instead of market value.
Tax Reduction: Results in lower property tax as the assessment is based on agricultural rather than potential commercial value.
Landowners in Shackelford County looking to benefit from the ag exemption should approach their county appraisal district for specific details, as requirements may vary. They should also be aware that changes in land use can affect their eligibility for the exemption, and it is crucial to maintain the necessary agricultural intensity to continue benefiting from it.
Eligibility Requirements
To qualify for an agricultural exemption in Shackelford County, Texas, the land must meet specific criteria related to agricultural use, size, and the owner's history of land usage. These requirements ensure the land is utilized primarily for agricultural purposes, including farming, ranching, and wildlife management.
Agricultural Use
The property must be devoted principally to agricultural use which includes, but is not limited to, producing:
Crops: Cultivation of soil, planting, growing, and harvesting plants.
Livestock: Raising domestic animals for food, work, or as pets.
Wildlife Management: Actively using land to sustain, propagate, and manage wildlife.
The use must meet the intensity standards set by the Shackelford County Appraisal District, proving that the land's agricultural use is consistent with similar operations in the region.
Land Size and Use
The County does not explicitly specify a minimum acreage; however, the land must be of sufficient size to be economically feasible for the following:
Agricultural production: The land must support a quantity and quality of production viable for commercial agriculture.
Intensity and nature of management: The level of activity must demonstrate that the land is primarily used for valid agricultural or wildlife management purposes.
Ownership and Usage History
The landowner must demonstrate a clear history of agricultural use by providing documentation of past activities and agricultural production. Additionally, they should meet these conditions:
Continuity: There should be evidence of ongoing agricultural activities throughout the ownership period.
Legitimacy: All operations and activities claimed must be legal and adhere to proper agricultural practices in Texas.
Qualifying for an agricultural exemption provides significant tax benefits, reinforcing the importance of understanding and meeting these eligibility requirements in Shackelford County, TX.
Application Process
In Shackelford County, Texas, the process of obtaining an agricultural exemption is a straightforward procedure that requires specific documentation and adherence to submission protocols.
Required Documents
Applicants must gather all necessary documentation to apply for an agricultural exemption. This typically includes:
A completed application form, specifically the AP-228 form, for the Texas Agricultural and Timber Exemption Registration Number, commonly referred to as the Ag/Timber Number.
Proof of eligibility for the exemption, which could involve an affidavit under certain conditions.
Submitting the Application
Upon assembling the required documents, applicants should:
Apply online for an Ag/Timber Number, the unique identifier necessary for the agricultural exemption.
Use the Ag/Timber Number to complete the exemption certificate for either agriculture or timber, depending on the nature of the operation.
Submit the application form and supplemental documents to the Texas Comptroller of Public Accounts or through the official portal designated for tax exemptions.
Pay attention to renewal dates as the Ag/Timber Number might have an expiration date and would require periodic renewal to maintain the exemption status.
Property Tax Code and Regulations
In Shackelford County, Texas, property tax regulations are guided by the provisions of the Texas Property Tax Code. This code establishes requirements for agricultural land valuations and sets the framework for rollback taxes, which are penalties for changing the use of agricultural land.
State vs. Local Regulations
The Texas Property Tax Code operates in conjunction with the Texas Constitution to govern the property tax landscape. The code stipulates that agricultural land should be appraised based on its capacity to produce agricultural products, referred to as productivity value, rather than market value. Shackelford County Appraisal District (CAD) is responsible for appraisals at the local level and ensures compliance with:
Shackelford County
Shackelford County Hospital District
Albany ISD
Moran ISD
City of Albany
Local entities like the Shackelford CAD align their practices with the Uniform Standards of Professional Appraisal Practices (USPAP) and the Texas Property Tax Code.
Rollback Tax Information
When land previously appraised as agricultural is changed to a non-agricultural use, the property owner incurs a rollback tax. This tax is the difference between the taxes paid on the land's agricultural value and the taxes that would have been paid if the land had been assessed at its higher market value for the previous five years. The Texas Property Tax Code mandates that:
The rollback tax is a lien against the property from the date of the change in use.
The amount due includes interest at an annual rate provided by the tax code.
Rollback taxes serve as a deterrent against the casual change of use of agricultural property and ensure that tax benefits are confined to genuine agricultural use.
Types of Agricultural Exemptions
Shackelford County, Texas, offers agricultural exemptions that reduce the tax burden for farmers and timber producers. These exemptions cater to specific areas within the agricultural sector, promoting the primary production activities of the county.
Livestock and Animal Husbandry
Farmers in Shackelford County who raise cattle, poultry, sheep, goats, and horses may be eligible for exemptions. The exemptions cover the purchase of essential items such as animal feed, veterinary supplies, and fencing materials, which are directly used for breeding, feeding, or caring for the livestock.
Crop Production
Agricultural exemptions extend to producing crops within Shackelford County. Producers can benefit from exemptions on inputs essential to crop production. This includes seed, fertilizer, pesticides, and equipment that are directly utilized in the planting, irrigating, and harvesting of crops, including various fiber crops.
Timber and Forest Products
In regards to timber production, exemptions may apply to machinery and equipment used in the cultivation, maintenance, and harvesting of forest products. Timber and forest product exemptions are designed to support the sustainable management and production of timber resources in Shackelford County.
Valuation of Agricultural Land
In Shackelford County, Texas, the valuation of agricultural land is governed by regulations that aim to assess property based not on its market value but rather on its productivity value. The county appraisal district is responsible for this specialized appraisal, which is intended to support the local agricultural community by offering a tax valuation that reflects the land's use.
Agricultural Appraisal: Lands utilized for agricultural purposes may be eligible for a special valuation approach, commonly known as an agricultural appraisal. This methodology evaluates the land based on its capacity to produce agriculture-related goods. This is notably different from general market-value assessments, which consider what the property would sell for on the open market.
Productivity Value: Productivity value is a measure of the agricultural output and is the cornerstone of the agricultural land appraisal process in Shackelford County. Tax assessments are based on this value rather than market conditions, which can be relatively volatile and not reflective of the land's actual use.
Appraisal Procedure: To qualify for the productivity valuation, landowners must apply with the county appraisal district and meet established criteria that demonstrate the land's active engagement in agricultural production.
Land Categories:
Open space land
Timberland
Wildlife management land
Tax benefits from these special appraisals encourage the preservation of agricultural land within Shackelford County by making it economically viable for property owners to maintain and cultivate their land rather than sell for non-agricultural development.
Tax Benefits and Implications
In Shackelford County, Texas, agricultural exemptions offer significant financial advantages for landowners. These exemptions, typically known as "ag exemptions," impact various taxes, including property tax and sales tax. Landowners benefit from reduced property tax valuations, based on the agricultural use rather than market value, which can lead to considerable tax savings.
Property Tax Assistance:
Tax Rate: The ag exemption applies a lower tax rate by valuing the land based on its agricultural productivity rather than its market value.
Valuation Period: To maintain this reduced rate, the land must be in agricultural use continuously.
Sales Tax Exemptions:
Items Included: Farming and ranching equipment, seeds, and feed are typically exempt.
Registration Requirement: Owners need an Ag/Timber Number to qualify for sales tax exemptions.
Franchise Tax:
Agriculture operations in Texas are generally exempt from the franchise tax as they are not considered to be a franchise.
Entity Impact of Ag Exemption Property Tax Reduced rates and valuations Sales Tax Exemptions on certain items Franchise Tax Generally not applicable
These tax benefits are designed to support the agriculture industry, ensuring that farmers and ranchers can invest more into their operations. While the exemption provides relief, property owners must adhere to specific use requirements and exemptions may not apply to all activities.
It is crucial for landowners in Shackelford County seeking these exemptions to understand the eligibility requirements and maintain proper land use to continue receiving these tax benefits.
Wildlife Management and Conservation
In Shackelford County, Texas, landowners have the option to achieve an agricultural exemption through wildlife management. Wildlife management is a strategic practice that involves actively using the land to support native wildlife species. This approach aligns with broader environmental conservation goals, as it fosters a symbiotic relationship between agriculture and local ecosystems.
Landowners must engage in at least three of seven specific practices to qualify for the wildlife management valuation:
Habitat Control: Creating an environment conducive to wildlife by managing the vegetation.
Erosion Control: Implementing measures to prevent soil degradation which can adversely affect wildlife habitats.
Predator Control: Managing predator populations to protect certain wildlife species.
Supplemental Water: Providing water, a critical resource for sustaining wildlife.
Supplemental Food: Ensuring additional food sources to support wildlife.
Providing Shelters: Creating or maintaining shelter options for various species.
Census Counts: Monitoring wildlife populations and their health.
The use of cover crops is one method of habitat control that can improve soil quality and provide forage for wildlife, integrating agricultural activities with conservation efforts. Additionally, these practices support a sustainable environment by maintaining an animal unit that is in balance with the carrying capacity of the land.
Landowners must demonstrate that these management activities are consistent and ongoing. Such dedication to wildlife and habitat conservation contributes to the county's overall environmental health and sustainability.
Additional Agricultural Practices
Shackelford County, Texas recognizes the diversity in agricultural operations that go beyond traditional livestock and crop farming. These additional practices are essential in sustaining the county's agricultural economy and include aquaculture, beekeeping, the cultivation of orchards, vineyards, and even alternative farming methods that may involve exotic animals or floriculture.
Aquaculture and Beekeeping
Aquaculture in Shackelford County involves the breeding, raising, and harvesting of fish and other aquatic organisms. Fish farm operations, including commercial fish farm operations, provide a viable alternative to traditional farming, contributing to the local food supply and economy.
Beekeeping entails the maintenance of bee colonies, typically in hives.
Purpose: Pollination of crops, production of honey, wax, and other products.
Relevance: Recognized for bolstering agriculture through enhancing yields of crops reliant on pollination.
Orchards and Vineyards
Orchards play a significant role in the county's agricultural profile, with farmers dedicated to growing fruit trees such as peaches, apples, and pecans (how long do pecans last?).
Management: Requires specialized knowledge in tree cultivation, disease management, and harvest techniques.
Contribution: Fruit from these orchards supplies both local markets and contributes to exports.
Vineyards in Shackelford are part of the Texas wine-growing industry, which has gained prominence over the years.
Viticulture: The practice of growing grapes suited to the local climate and soil, aiming to produce high-quality wine.
Economic Impact: Adds to the region's agritourism through wine tastings and tours.
Alternative Farming
Alternative farming in the county includes practices such as floriculture and the raising of exotic animals.
Floriculture: Involves the cultivation of flowering and ornamental plants for gardens, for decor, or for the floral industry.
Exotic Animal Farming: Can encompass various species, from alpacas to emus, often for niche markets or diversified agricultural portfolios.
Record Keeping and Compliance
Shackelford County agricultural exemption requires meticulous record-keeping and adherence to compliance standards. The focus is on ensuring that property owners meet the strict criteria set forth for agricultural appraisal valuation.
Maintaining Eligibility
To maintain an agricultural exemption in Shackelford County, property owners must demonstrate ongoing engagement in qualifying agricultural activities. Record keeping is fundamental, and the documentation should detail:
Annual gross agricultural income
Evidence of conservation practices
Dates and descriptions of agricultural use
The chief appraiser assesses these records to verify eligibility. They must reflect the true agricultural use of the land.
Handling Inspections
Inspections are a compliance mechanism performed by the chief appraiser to confirm that the agricultural exemption standards are met. During an inspection, the chief appraiser will expect to review:
Documents Reviewed Purpose Land maintenance records To verify active agricultural use Conservation practice reports To confirm adherence to conservation efforts Income summaries To assess economic engagement in agriculture
Property owners should have these records well-organized and readily available to facilitate a smooth inspection process. Compliance with the exemption criteria is crucial to retain the special valuation on property taxes.
Special Cases and Provisions
In Shackelford County, TX, agricultural exemptions have specific conditions under which they are applied. The nuances of these provisions significantly impact both current and future land use.
Leased Land Use
Leased land in Shackelford County may qualify for an agricultural exemption if it's primarily used for agricultural purposes. However, the landowner must prove that the land is used for agriculture by the lessee. To maintain the exemption, the land must adhere to the following conditions:
Active Production: The lessee must actively use the land for agricultural production.
Agricultural Purpose: The land should be used to raise crops, livestock, or for other agricultural endeavors.
Lease Agreement: A clear and binding lease agreement that stipulates the agricultural use is necessary.
If the land is utilized for an agricultural vocational course, it must still meet the county's criteria for agricultural use to maintain its valuation and exemption status.
Transition to Non-Agricultural Use
When land previously under an agricultural exemption in Shackelford County transitions to non-agricultural use, certain implications arise:
Rollback Taxes: The land is subject to five years of rollback taxes based on the difference between the taxes paid on the land's agricultural valuation and the amount that would have been paid if it were taxed at market value.
Change in Valuation: Upon change to non-agricultural use, a new valuation based on the market value applies.
The landowner must be aware of the financial impact of such a transition and plan accordingly. Proper documentation and timely communication with the county's appraisal district are essential to facilitate a smooth transition.
Contacting the Authorities
For individuals seeking information on agricultural exemptions in Shackelford County, TX, knowing the right points of contact can streamline the process. Both the Shackelford County offices and the Texas Comptroller of Public Accounts provide vital resources for assistance.
Shackelford County Offices
Property owners in Shackelford County should direct their inquiries regarding property valuations and assessment to the appropriate officials. Contact information is as follows:
Property Valuations & Assessment:
Contact: Clayton Snyder
Email: [email protected]
Collections, Refunds, Agent & Mortgage Queries:
Contact: Candy Riley
Email: [email protected]
Records, Exemptions, Renditions & Public Information Requests:
Contact: Vanh Vongphakdy
Email: [email protected]
Mailing correspondence for the Shackelford County Appraisal District can be sent to the following address:
PO Box
Shackelford County Appraisal District
PO Box 38
Albany, TX 76430
For those who prefer to engage via telephone or fax, contacting the main office is an option. Precise numbers can typically be found by visiting the official website of the Shackelford County Appraisal District or via directory assistance.
Texas Comptroller Resources
The Texas Comptroller of Public Accounts is a key resource for agricultural and timber exemptions. Those needing information on renewals and applicable forms will benefit from the following contact avenues:
Renewal Information & Assistance:
Toll-free number: 1-844-AG RENEW (1-844-247-3639)
Email: The specific email address is generally not listed publicly for the Texas Comptroller, but inquiries can be directed through the contact form on their official website.
For online services, the Texas Comptroller’s Office provides a Webfile tool. This can be accessed for various tax services including renewals and claims for agricultural exemptions.
Each entity is equipped to assist with questions concerning the agricultural exemption process, ensuring that property owners have access to the correct forms and information. For those considering application or renewal for agricultural exemptions in Shackelford County, engaging with these offices is a crucial step.
Frequently Asked Questions
What is an agricultural (ag) exemption in Shackelford County, TX? An ag exemption in Shackelford County refers to a property tax benefit for landowners who use their land for agricultural purposes. Rather than being taxed based on market value, these properties are assessed based on their capacity to produce agriculture, which typically results in lower property taxes.
How does one qualify for an ag exemption? To qualify for an ag exemption in Shackelford County, landowners must actively use the land for agricultural purposes. The size requirement for the land may vary. Owners are advised to consult with the Shackelford County Appraisal District for precise eligibility criteria.
What are the key benefits of an ag exemption? The primary benefit is a lower property tax bill due to the land's valuation based on its agricultural productivity rather than market rate. This can represent significant savings for qualifying landowners.
Are there different types of agricultural activities that qualify for the exemption? Yes, different types of agriculture such as ranching, farming, and beekeeping may qualify. Each activity may have different requirements or eligibility conditions as determined by local regulations.
When should landowners apply for an ag exemption? Landowners should apply when they have begun using the land for qualifying agricultural activities. They should file a formal application with the Shackelford County Appraisal District, typically at the beginning of the year.
Do ag exemptions expire? Ag exemption statuses are subject to periodic review. Owners should verify the specific renewal requirements for Shackelford County by contacting the local appraisal district.
Who can one contact for more information or assistance? For assistance or more information, landowners should reach out to the Shackelford County Appraisal District, as they manage the application and qualification process for ag exemptions.
Additional Resources and Training
Shackelford County, Texas, offers a variety of resources and training opportunities for those interested in agricultural exemptions and best practices in farming and ranch management. Stakeholders can locate valuable information and support through local entities and programs.
Local Educational Programs: High school students and youth can engage with Future Farmers of America (FFA) and 4-H clubs in the local area. These organizations are instrumental in providing agricultural education and hands-on training, fostering the development of future generations in the agricultural sector.
Productive Training Sessions: For hands-on experience with tangible products and innovations in agriculture, local workshops and agricultural extension programs provide practical training in the use of farming equipment and sustainable farming techniques.
Essential Documentation: Individuals seeking agricultural exemptions are advised to familiarize themselves with the necessary forms and guidelines, which can be accessed and read using Adobe Acrobat Reader. This software is essential for reviewing PDF documents such as the Texas Agricultural and Timber Exemption Registration Number (Ag/Timber Number) application form.
Educational Materials and Guidance:
Training materials and guidance documents are often available through county agricultural extension offices.
Local seminars and workshops offered by agricultural specialists can provide updates on tax exemption regulations and application procedures.
To ensure timely and accurate processing of agricultural exemptions, applicants should remain informed about updates to exemption policies, renewal deadlines, and documentation requirements.
