Anyone have any tips on maintaining ag exempt status on land in Montgomery County. 45 acres exempted thru hay and cattle. New scenario will be horses. What's the best way to maintain exempt status on at least most of the land. Thanks

if you've already got an Ag appraisal on it, you'll be fine if you're just simply switching the use. as long as you don't stop using it for any ag use, you'll be ok.

just refile the app with the new ag use. you'll have to put hay/cattle production for the past however many years, then for the most recent year, list it as the new use.

switching Ag use should not cancel out your Ag appraisal.

[This message has been edited by thook13 (edited 3/6/2013 11:39a).]

I know it's a different county but my county will not allow horses for an exemption unless you provide proof of breeding and/or commercial intent. Horses to them are a hobby unless you prove otherwise.

Several counties do not allow for horse production as an ag exemption. The hay production may be enough. Just call your appraisal district to make sure.

what is the effective land tax if you have a couple of cattle heads in Montgomery County? per acre?

Ag value is based off of production. As long as the entire property is being used for the Ag then the whole property can receive the valuation.

Another option is the wildlife exemption, it's fairly easy to maintain as long as you are doing your part.

As suggested I'd talk to your local CAD and speak with the Ag coordinator. They will give you the guidelines for your county and tell you the options

Check with the CAD. You could be liable to retroactive taxes if you lose your ag exemption.

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[This message has been edited by CapitalFarmCredit (edited 3/8/2013 8:04a).]

My guess is horses aren't considered Ag unless you are a breeder. On small acreage get goats. Much easier to keep than cows.

Also find out what the taxes will be if you lose the exemption. Then figure out how much money you will spend trying to maintain Ag exemption.

CapitalFarmCredit is correct. We just purchased a property in Denton County and found out about "rollback" taxes. We could be liable for the past 5 years of the difference in Ag exempt taxes and full taxes.

Kind of a scam if you ask me.

If you need me to run some cows on it let me know

That doesn't seem like it would be legal especially if you did not own the property. I guess they are targeting developers.

It's normally an issue found at closing

Rollback taxes are part of the law here in Texas. And there's nothing you can do about it but pay them.

And yea, it's mainly for the developers who have hundreds if acres under Ag before they develop it all.

However, rollback taxes really only apply when the land has a change of use. If you lose your Ag appraisal you could still avoid rollback taxes if you haven't changed it to commercial use land. It's kinda a fine line and a little tricky sometimes.

I doubt Montgomery CAD would rollback his taxes.