Need some info an property taxes

[TheDan]

I bought some property on Dec 30th, 2010. At the time it was under ag exemption (the previous owner had a few cows). Yesterday I got a "notice of roll back taxes on property changed from agricultural use" stating I'm subject to additional taxes for years 2010, 2009, 2008, 2007, and 2006. I called the tax assessors office to ask why I would be responsible for the taxes for years I didn't own the property, and all they said was to fill out a dispute form. They didn't even tell me how much it would be. I'm severely confused here...

 

[Vaquero]

That wont be cheap. Get a real estate or tax lawyer, it wont be cheap but it will be cheaper. How many acres? Can you lease the grazing and qualify for ag exemtion?

 

[TheDan]

Its only 8 acres. I think the difference in the taxes is only about $300 a year, but damn... Why would I be responsible for the years before I owned it? If I applied for ag exempt now would it fix this? I could definitely let my neighbor graze his cows on the property, or just get a couple of my own. I'm trying to research my options but I'm not having much luck.

 

[Vaquero]

Ask the title company or law office that handled the sale and closing. Its a good place to start.

 

[Renegade]

Its only 8 acres. I think the difference in the taxes is only about $300 a year, but damn... Why would I be responsible for the years before I owned it?

Because your realtor did not know enough about ag-exempt land to inform you of the consequences of losing an ag-exemption and to make the seller responsible for rollback taxes.

If I applied for ag exempt now would it fix this? I could definitely let my neighbor graze his cows on the property, or just get a couple of my own. I'm trying to research my options but I'm not having much luck.

Get an ag exempt quick.

 

[Viking71]

What Renegade said is accurate.

What you're going to want to do is establish that you are continuing with the AG. You cam get some animals of your own (due to the current drought, the appraisal districts are pretty lax about population density).

Another easy alternative is to get a letter/contract from your neighbor for grazing his animals.

They might try to give you a hard time about having less than 10acres.

 

[TheDan]

If the seller is responsible for rollback taxes would that be in the closing contract? I'll have to look for that in there.

Looks like I've got a lot more research to do... I've never owned ag-exempt land before. Viking, sell me a donkey!

 

[Renegade]

If the seller is responsible for rollback taxes would that be in the closing contract? I'll have to look for that in there.

Looks like I've got a lot more research to do... I've never owned ag-exempt land before. Viking, sell me a donkey!

On my contract it was a checkbox item - buyer or seller - check one. Seller allowed seller to be checked.

 

[TxDad]

I know that when back taxes are owed, its on the current owner. The taxes are for the land itself, which does not release a new buyer of the land. Its up to the owner to prove its still being used for Ag. As said above, a letter from the neighbor that would run his livestock on your prop is usually a good step. I know our county appraisers go out and have to visually see its being used as so. No animals, no Ag.
Why did they remove the Ag anyway? Did you as the new buyer fill out the Ag form for that exemption to stay on there?

 

[Dawico]

I know some areas changed the rules on how much land and the specific use of the land to keep/ get AG exemption. The Austin area was part of it, and I could have gotten a bunch of worthless animals for free at the time. People were going to lose their exemption regardless, so they didn't want the animals anymore. Maybe this is the beginning of your problem? If so, you may not be able to get the exemption at all.

 

[TexasRedneck]

Yep - sounds to me like you're fixin' to get hosed by their recent changes. Do yourself a favor - get a good attorney on it ASAP to see just where you stand. Shouldn't take more than an hour of his time to review and recommend, then you can decide what to do from there. If at ALL possible, keep that Ag exemption!!!

 

[ZX9RCAM]

Lease the land to somebody for grazing, let them put one cow on it. lol.....

 

[TheDan]

Why did they remove the Ag anyway? Did you as the new buyer fill out the Ag form for that exemption to stay on there?

I never filled out the form. I didn't have any intention of using it for ag. I knew my taxes would be more than without it, but I had no idea that if I lost ag exemption I could be charged for previous years. That just doesn't seem right to me.

I'd really like to know how much I'm going to owe before I decide how to tackle this, but no one can tell me. Shouldn't the appraisal office know the difference between ag use and regular for my property? I've called them twice now and all they can tell me is "it hasn't been calculated yet".

It's in Milam county, btw...

 

[Renegade]

I'd really like to know how much I'm going to owe before I decide how to tackle this, but no one can tell me. Shouldn't the appraisal office know the difference between ag use and regular for my property? I've called them twice now and all they can tell me is "it hasn't been calculated yet".

It is the difference between the ag tax and the regular tax.

You can go back over the past 5 years and look at the appraised values of the land for each year, and then multiply by the tax rates for each year. Subtract this from what was already paid at ag rate and you have a good idea.

 

[TexasRedneck]

Or, look at a neighbors land that doesn't have ag exemption.....when you get over the shock, you'll be trying like hell to get the ag back......

 

[RetArmySgt]

Thats one of the good things that came of me getting messed up in the Army. I will never pay property tax, only problem is getting out of debt so that i can afford to buy property.

 

[TxDad]

I never filled out the form. I didn't have any intention of using it for ag. I knew my taxes would be more than without it, but I had no idea that if I lost ag exemption I could be charged for previous years. That just doesn't seem right to me.

I'd really like to know how much I'm going to owe before I decide how to tackle this, but no one can tell me. Shouldn't the appraisal office know the difference between Ag use and regular for my property? I've called them twice now and all they can tell me is "it hasn't been calculated yet".

It's in Milam county, BTW...

--I am not familiar with charging for previous years AFTER AG has been removed. That does seem funny. A quick look on the www and it appears their site is Milam CAD - Property Search
I don't see why they wont try to calculate it for you. It shouldn't take a lot of time. But I don't know their workload.

Or, look at a neighbors land that doesn't have Ag exemption.....when you get over the shock, you'll be trying like hell to get the Ag back......

I fear this will be the case. Please pursue this and try to get it back. In my county it takes years to get it back just to qualify. IDK if its just our county or the same elsewhere. Im limited on the specifics cause I dont specialize in that part of it.
I can talk to an appraiser if you would like and see what their take might be. Maybe they can explain why.

 

[Dawico]

Here anyway, you have to have an agricultural use for 5 out of 7 years. Miss it for 2 years out of 7 and you lose it. You don't get it back until you have 5 out of 7 years again. I am not exactly sure how they keep track of it besides sending someone out to look.

 

[TexasRedneck]

The premise is to keep someone from holding land as Ag use, then converting it to residential/commercial just before building on it. LOTS of developers used to do it that way to avoid taxes as long as possible. Government being what it is, they came up with the "back taxes" "fix"......

 

[thorkyl]

A few things are at play here

1 - The counties get to declare what constitutes Ag Exempt
---> Brazoria County requires 9.75 acres and something else (I have 33 acres and grow hay)

2 - If the property falls under the ag exempt amount of required land then back taxes could be due


3 - This is critical - Call your title policy company and file a claim, it sounds like they missed something in the title research.