I have a tract of land in Hays County with very few improvements and no living space. The previous owner missed a filing deadline and lost the ag exemption. I'm in year 3 of producing an ag product on the land, but I understand I have to continue this for 2 more years before qualifying for ag exempt status.

The tract is landlocked by other tracts I own, and development restricted by a previous owner, so I believe the market value is very low if I were to attempt a standalone sell of the tract. Hays CAD has it appraised for a little over $1 million.

I need a recommendation or referral for a property tax protest company that is familiar with Hays County and undeveloped land.

crossposted to Austin forum

TxAg20 said:

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The previous owner missed a filing deadline and lost the ag exemption. I'm in year 3 of producing an ag product on the land, but I understand I have to continue this for 2 more years before qualifying for ag exempt status.

Hays CAD has it appraised for a little over $1 million.

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Maybe I'm short on facts here, but my understanding of Texas law is that if one owner has the 1-d-1 special valuation, he cannot lose it unless the Chief Appraiser detects an unreported change in use and asks him to re-apply.

In other words, each owner only has to apply once.

Now, when ownership changes, the new owner needs to apply.

So, perhaps when you purchased the property that did not occur? If so, I would contact the Chief Appraiser and explain the situation to them (ie - you've continued Ag operations to the required degree of intensity and not filing was just a paperwork oversight and see if they'll have some discretionary authority to correct it for you).

Of course, as I write that, I'm thinking that the valuation-hungry Hays CAD may be a merciless bunch, so don't get your hopes up.

Also, if I may ask -- How many acreas are we talking about? 5 acres valued at $1MM is a bunch, but 500 won't be.

My understanding is the previous owner was a "new owner" of the tract when he missed the filing deadline to keep the land under ag use.

The tract is about 15 acres.

TxAg20 said:

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My understanding is the previous owner was a "new owner" of the tract when he missed the filing deadline to keep the land under ag use.

The tract is about 15 acres.

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Thanks. Understood.

Is there any chance that the previous owner, in spite of neglecting to file, was producing an agricultural product for at least a couple of years that would qualify in order to get you to 5 years out of 7? (not applicable if you are in city limits -- need 5 of 5 for that).

Or, even if he missed a couple, that you could get to the 5 of 7?

I mean, I'd throw everything at the wall to try to avoid paying $20,000 a year in property taxes on 15 acres of mostly undeveloped land. (2% x $1MM).

If all those are dead ends, you can hire a guy (or DIY) to try to get the valuation reduced, but I'll caution you, based on personal experience from doing and winning protests, you can win at the ARB and have it greatly reduced, and then next year the CAD hits the 'reset' button and you're back to square one.

In fact, I'll bet I'll face that again this year. Supposedly, if you win at the ARB and the CAD increases it the next year they have to show 'clear and convincing' evidence to support the increase (instead of just more likely than not), but they don't really put that much thought into it. Giant perpetual PIA game, to my way of thinking, but it's the state of things.

In any case, good luck.

Thank you for the help.

I don't think I can get it in ag valuation under ag product for any time in the last decade. 3 owners ago, the tract had an ag exemption for wildlife. My understanding is you can perpetuate an ag exemption with wildlife, but you can't earn the exemption with wildlife. That owner sold the tract to a developer. I'm not sure what/if anything the developer did to keep it in ag valuation, but the developer didn't own it long before another neighbor raised hell about the development plans. The developer ended up selling it to my predecessor with a bunch of restrictions to keep it from being developed.