Item 3. Agricultural Evaluations TCAD — original pdf

Backup

Nickolas Fritz, Land & Special Valuation Manager To qualify for agricultural evaluation, a property must show: • Agricultural use for 5 of the preceding 7 years • Agriculture is the land's primary use • Degree of intensity generally accepted in the area • Current intensity guidelines are generally designed around larger traditional operations. However, the law does not allow TCAD to deny a qualifying use solely on the basis of acreage. A small, intensive commercial operation that meets the degree-of-intensity test can qualify, regardless of size. • Commercial intent — production for sale, not hobby or personal use Application deadline: April 30 annually (Form 50-129) Land Inside Austin City Limits • Standard 5-of-7 year history becomes a continuous 5-year requirement — no gaps allowed • One missed year inside city limits can break the qualification, whereas it would not outside the city limits • Alternate path: land that does not receive city services comparable to surrounding properties may qualify. This is rarely applicable in Austin proper. • Consistency of documented use is critical — off-season gaps in visible activity matter more inside city limits Both mixed produce and cover cropping are recognized agricultural activities under Texas Tax Code §23.51. Mixed Produce Farms • Qualifies under irrigated or dry cropland categories • Must demonstrate commercial sales — receipts, Schedule F, and buyer documentation are key Both mixed produce and cover cropping are recognized agricultural activities under Texas Tax Code §23.51. Cover Cropping • Explicitly listed as a qualifying activity in Tax Code §23.51 when part of a normal commercial crop rotation • Cannot stand alone as the primary qualifying use — must support an active commercial operation TCAD currently has no formal mixed produce intensity classification — but the legal framework fully supports creating one. • The Chief Appraiser has full statutory authority to establish intensity standards for any agricultural use type. • The Comptroller's framework explicitly supports small intensive operations and does not allow acreage alone to be disqualifying. • TCAD has discussed a mixed produce class for several years — limited demand has slowed formal development. • Engagement from Austin's food community is exactly the kind of input that moves this forward through the Ag Advisory Board. A conservation easement is a voluntary legal agreement — permanently recorded in the deed — that restricts development or commercial use of land for conservation purposes. It is governed in Texas by Natural Resources Code Chapter 183. A conservation easement can qualify land for wildlife management valuation without requiring an agricultural use history — but only under all four of these conditions: 1. Land must be in a designated habitat preserve 2. Subject to a Chapter 183, NRC conservation easement 3. Actively used to protect a federally listed endangered species 4. Under an active federal permit A conservation easement does not: • Help qualify land for standard 1-D-1 agricultural valuation • Substitute for the 5-of-7 year agricultural use history requirement • Protect against rollback taxes if agricultural use ceases • Provide any advantage in degree of intensity determinations • Create a shortcut or workaround in the 1-D-1 qualification process Conservation easements are a positive conservation tool and TCAD encourages their use for environmental protection and habitat preservation. However, outside of the narrow §23.51(7)(B) endangered species pathway, they carry no weight in the 1-D-1 qualification or appraisal process at TCAD. A conservation easement alone does not earn a property special agricultural valuation status. The advisory board advises the Chief Appraiser on: • Degree of intensity standards for agricultural land use • Net-to-land productivity values used in 1-D-1 appraisal • Land use classification for agricultural, open-space, and timberland properties • Improving communication between the farming community and TCAD Board Structure • 3 or more members appointed by the Chief Appraiser with advice and consent of the Board of Directors • Members serve staggered 2-year terms • Must be Travis County landowners with a qualifying agricultural valuation (1-D, 1-D- 1, timberland, or wildlife management) • Must have been a Travis County resident for at least 5 years • Appraisal district employees and officers are not eligible to serve • Service is voluntary and uncompensated Board Meetings • Meets 1–2 times per year at the call of the Chief Appraiser — typically spring and/or fall • Texas law requires at least one meeting annually • Meetings are generally under two hours • May be held in person at TCAD's main office (850 E. Anderson Lane) or virtually via Zoom How to Get Involved • Candidates are typically identified through referral from current board members, TCAD staff, or the Chief Appraiser • TCAD sends a formal application to the candidate for completion • Applications are reviewed for eligibility and forwarded to the Chief Appraiser for consideration • The Chief Appraiser presents the recommendation to the Board of Directors for final approval • The process runs on an annual cycle — one member added per year To request an application, email aginfo@tcadcentral.org