Getting a Farm Tax Number ??

[175gr7.62]

There are differences from county to county



In Smith you have to prove the land was used for ag use for 5 out of the last 7 years

At least that is what I remember them saying

Same thing for Harrison. I just didn’t know if property AG exemption and farm tax was tied together.


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[M16]

Check out this link.

https://comptroller.texas.gov/taxes/ag-timber/

[TXRM1280]

Comptroller site doesn’t clarify if you qualify for the sales tax exemption for leasing the land for grazing. It doesn’t clearly say you don’t qualify either.


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[M16]

Comptroller site doesn’t clarify if you qualify for the sales tax exemption for leasing the land for grazing. It doesn’t clearly say you don’t qualify either.


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You don’t qualify if you are just leasing property. You have to be a producer.

[TXRM1280]

Checked out the application page and the following is listed as an approved activity. The last part would imply leasing for grazing is okay... “I raise and sell hay, grasses (alfalfa, clover, grass, etc.) or forage or lease my grass pasture land exclusively for grazing livestock”

Like someone mentioned above it’s probably best to ask your CPA.


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[M16]

Here is what is says.

If you are a farmer, rancher or timber producer engaged in one of the activities listed below, you qualify for tax exemption on the purchase of certain items used to produce your agricultural and timber products for sale.


farming or ranching for the purpose of raising agricultural products for sale;
timber production (including contract logging);
feedlot operation;
commercial fish farm operation;
bee keeping;
custom harvesting;
crop dusting (as defined by 14 CFR Section 137.3);
growing plants for sale in a commercial nursery;
a veterinary business that makes farm or ranch calls;
Future Farmers of America or 4-H; or
teaching an agricultural vocational course.

Property tax exempt and Sales Tax exempt are two different things. You can lease your land and be property exempt but if you don't meet the guidelines above you are not sales tax exempt.

[Shinesintx]

I have a timber appraisal. I converted it from hay when I bought it. If you saw my land...you’d ask how it was hay. Since it was under the exemption, which is actually an appraisal, they accepted that it would be timber. I don’t have to sell anything, I just had to pay a guy $250 to write up a timber plan...the county wanted me to jump thru a hoop. I jumped thru a hoop. I sell some firewood to family to keep my timber appraisal. I just have to answer a questionnaire as to how much I sell a year....it has come twice in the last 6 years.

[solocam_aggie]

I have a timber appraisal. I converted it from hay when I bought it. If you saw my land...you’d ask how it was hay. Since it was under the exemption, which is actually an appraisal, they accepted that it would be timber. I don’t have to sell anything, I just had to pay a guy $250 to write up a timber plan...the county wanted me to jump thru a hoop. I jumped thru a hoop. I sell some firewood to family to keep my timber appraisal. I just have to answer a questionnaire as to how much I sell a year....it has come twice in the last 6 years.

Dang. That wouldn't fly in my county. They would pull that exemption on the first audit.

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[friscopaint]

Lot's of differing information here.....Farm tax number, County Ag exemption and IRS taxes are 3 completely different animals. As far as county Ag goes, here in Grayson county we bought 30 acres, of which 5 and house weren't Ag. Went to appraisal district and very politely asked about getting it changed as the fence lines were incorrect for the 5 acres. She pulled it up on google earth, I showed here where the pasture fence line was, showed her registration papers for our mares (3 of breeding age in Grayson) and our stallion (not required) but looked better for us. She then looked at our horse sales website and said you are correct on the fence. Couple clicks of the mouse and 3 acres placed immediately back into Ag. I was hoping for 4 but wasn't going to complain. As far as profits, we did profit on the sale of horses this past year but on Federal Taxes we still lost money due to deductions which is perfectly legal. We made a profit on horse sales but once all said and done our tax liability was still very low and it made zero difference in amount paid/owed/refunded from IRS. Every county has different expectations on what is, and isn't, considered farm/ag use. We harvest pecans but don't qualify on the trees per acre formula grayson has. Hay must be x amount of tons but they also understand drought years. We are considered horse breeders and we qualify for ag, a horse trainer or boarding facility would not "legally" be considered ag but most are.

Makes my buddy mad that we get all the tax deductions but I didn't make the rules. Also, farming/ranching is expensive and keeps a lot of county businesses going. Our hay, diesel, feed bills, medicines, vets, etc....keeps a lot of money flowing around....

What was said earlier, I would nicely go into the appraisal district and discuss with them the steps necessary to get back into Ag, every county is different.

[Throwin Darts]

You have to profit 3 out of the next 5 years or they can call it a hobby farm. At which point you can not use tax exemptions. Till then you are free to do so. As always consult an accountant for those things and not internet strangers

You are talking about three very different taxes jurisdictions as if they are one. Being tax exempt on State and local sales tax, Ag exempt on county taxes and your reporting of Federal Taxes.

[sambo73]

we get people ag numbers everyday here at work, even people from out of state. we have been audited 2x so we cross every t and dot every I. I sell used farm equipment daily and deal with it daily.