Spring brings wildflowers, fresh forage and taxes. And there are several upcoming tax deadlines Texas landowners need to be aware of to prevent stress down the road.
The deadline for filing open space, agricultural use and wildlife management valuation applications is May 1, according to Tiffany Dowell-Lashmet, assistant professor and Extension specialist in Agricultural Law with Texas A&M AgriLife Extension and author of Texas Agricultural Law Blog.
Texas recognizes two distinct types of agricultural-related property use valuation. The original method created in 1966 is known as “agricultural use valuation” and the second is known as the “open space valuation.”
Most agricultural landowners are using open space valuation.
“Special use valuation methods allow property taxes to be calculated based on productive agricultural value as opposed to market value of the land,” Dowell-Lashmet wrote in the ag law blog.
Dowell-Lashmet said the chief appraiser may, for good cause, extend this deadline by up to 60 days.
The purpose of Texas open space and agricultural appraisal is to protect the family farm.
Dowell-Lashmet offers key points for landowners to consider this tax season:
- If a property qualifies under “agricultural use” rather than “open space,” a yearly application must be filed by May 1. (Note that “agricultural use” is based upon the standards set forth in Article VIII, Section 1(d) of the Texas Constitution, which requires a yearly application, whereas “open space” is based upon Article VII, Section (1)(d) of the Texas Constitution, for which a one-time application is required. Although most Texas land qualifies under “open space,” a landowner may want to confirm that with his or her tax office.)
- If a landowner wishes to have his property qualified for open space valuation and it has not been previously considered as such, the one-time application must be filed by May 1.
- If a landowner wishes to change the land from open space to wildlife management use, he or she must notify the chief appraiser of this desired change by May 1.
- A landowner who purchased property in the last year that previously had the open space valuation exemption is required to file a new application by May 1.
Dowell-Lashmet notes that landowners should carefully review their annual Notice of Appraisal in their mailbox this spring. If there is any information that they wish to dispute, they should be aware of the deadlines for filing a protest before it’s too late.
The deadline to file a protest of the information contained in the Notice of Appraisal is April 30 for residential homesteads and May 31 for all other property, or 30 days after receipt of the bill, whichever is latest.
The Texas Comptroller has forms for filing a protest.
For more information on special use valuation, click here.
For more information on special use valuation and the deadlines contact Tiffany at 806 677 5668 or tdowell@tamu.edu or visit http://agrilife.org/texasaglaw/.
Your articles states “If a property qualifies under “agricultural use” rather than “open space,” a yearly application must be filed by May 1.”
Check your facts. I don’t believe that an application for agricultural use is required to be filed “yearly” as this states.
Chris, I recognize there is some confusion about the language used here. Most agricultural landowners in Texas use open space valuation. But it is recommend to check with your tax office to confirm. While an annual application must be filed with the County Appraisal District to maintain agricultural use valuation, open space valuation is a onetime application. Please note we have updated the article to reflect this.
Shala, It seems that this article may need to distinguish between “tax appraisal,” which property owner normally receives in April-May timeframe and “tax bill,” which is based on the previous appraisal, and which property owner receives in Sept-Oct timeframe.
Mike, thank you for bringing this to our attention. We have update the article.