Property Taxes on Farms and Ranches Could be Reduced with Productivity Appraisal

Texas farmers and ranchers can be granted property tax relief on their land. They may apply to the Lynn County Appraisal District for agricultural productivity appraisal and for a lower appraisal based on typical production, versus market value.

The Texas Constitution authorizes two types of agricultural productivity appraisals, 1-d-1 and 1-d, named after the section in which they were authorized. For 1-d-1 appraisal, property owners must use the land for agriculture or timber, and the land’s use must meet the degree of intensity generally accepted in the area. Owners must also show that the land was used for this purpose for at least five of the preceding seven years. 1-d-1 appraisal does not restrict ownership to individuals and does not require agriculture to be the owner’s primary business. Most landowners apply for the 1-d-1 appraisal.

Under 1-d appraisal, the owner must have used the land for this purpose at least three years and be an individual versus a corporation, partnership, agency or organization. The land must also be the owner’s primary income source.

Penalties in the form of a rollback tax, or the difference between the taxes paid under productivity appraisal and the taxes that would have been paid if the land had been put on the tax roll at market value, will be imposed if qualified land is taken out of agriculture or timber production.

A rollback tax occurs when a landowner switches the land’s use to non-agricultural. These rollback taxes are based on the three tax years preceding the year of change.

Texas law allows farmers and ranchers to use land for wildlife management and still receive the special appraisal, but the land must be qualified for agriculture use in the preceding year. Land under wildlife management must also meet special use qualifications.

The deadline to apply for productivity appraisal is April 30. If the last day for the performance of an act is a Saturday, Sunday or legal state or national holiday, the act is timely if performed on the next regular business day. Owners of land qualified as 1-d must file a new application every year. Owners of land qualified as 1-d-1 need not file again in later years unless the chief appraiser requests a new application.

For more information about productivity appraisal and application forms, contact the Lynn County Appraisal District at 1615 Main Street, Tahoka, TX 79373 (806-561-5477). Property owners can find more information on the Comptroller's Property Tax Assistance Division's website: comptroller.texas.gov/taxes/property-tax/.

If you own tangible personal property that is used to produce income, you must file a rendition with the Lynn County Appraisal District by April 15.

A rendition is a report that lists all of the taxable property you owned or controlled on Jan. 1 of this year. This often applies to furniture, fixtures, equipment or inventory owned by a business. You do not have to render exempt property, such as church property or an agriculture producer’s equipment used for farming. You can also file a report of decreased value to notify the appraisal district of significant depreciation of your property.

For most property types, renditions must be filed after Jan. 1 and no later than April 15. Different deadlines apply in certain appraisal districts and for regulated properties.

A 10 percent penalty may be imposed if a rendition is filed late, incomplete, or not at all. Property owners who need more time to file their renditions may file a written request with the chief appraiser on or before the rendition deadline to receive an automatic extension to May 15. The chief appraiser may extend the deadline another 15 days for good cause shown in writing.

File renditions with your local appraisal district at:

Lynn County Appraisal District
P.O. Box 789
Tahoka, Texas 79373
Telephone: (806)561-5477

For more information about rendering property, deadline extensions, penalties and rendition forms, taxpayers may contact the Lynn County Appraisal District or visit Comptroller’s Property Tax Assistance Division’s website at comptroller.texas.gov/taxes/property-tax/.

One of the easiest ways a homeowner can lower his or her property tax bill is to file a homestead exemption. A homestead is generally the house and land used as the owner’s principal residence on Jan. 1 of the tax year. A person who acquires property after Jan. 1 may receive the residence homestead exemption for the applicable portion of that tax year immediately on qualification for the exemption if the preceding owner did not receive the same exemption for that tax year.

Homestead exemptions reduce your home’s appraised value and, as a result, lower your property taxes. To apply for an exemption on your residence homestead, contact the Lynn County Appraisal District.

Available homestead exemptions include:

• School taxes: All homeowners may receive a $140,000 homestead exemption for school taxes.
• Age and disability exemptions: Individuals 65 or older or disabled as defined by law may qualify for a $60,000 homestead exemption for school taxes, in addition to the $140,000 exemption available to all homeowners. Also, any taxing unit may offer a local optional exemption of at least $3,000 for taxpayers age 65 or older and/or disabled. Older or disabled homeowners do not need to own their homes on Jan. 1 to qualify for the $60,000 homestead exemption. They qualify as soon as they turn age 65 or become disabled.
• Partial exemption for disabled veterans: Texas law provides partial exemptions for any property owned by disabled veterans, surviving spouses and surviving children of deceased disabled veterans. This includes homesteads donated to disabled veterans by charitable organizations at no cost or not more than 50 percent of the good faith estimate of the homestead’s market value to the disabled veterans and their surviving spouses. The percentage of service-connected disability determines the exemption amount.
• 100 Percent Residence Homestead Exemption for Disabled Veterans: A disabled veteran awarded 100 percent disability compensation due to a service-connected disability and a rating of 100 percent disabled or of individual unemployability from the United States Department of Veterans Affairs is entitled to an exemption from taxation of the total appraised value of the veteran’s residence homestead. Surviving spouses of veterans who qualified for this exemption or who would have qualified for this exemption if it had been in effect at the time of the veteran’s death are also eligible with certain restrictions. The residence homestead application must be filed if this exemption is claimed.
• Surviving Spouses of Members of the U.S. Armed Services Killed in the Line of Duty: The surviving spouse of a member of the U.S. armed services who is killed or fatally injured in the line of duty is allowed a 100 percent property tax exemption on his or her residence homestead if the surviving spouse has not remarried since the death of the armed services member.
• Surviving Spouses of First Responders Killed in the Line of Duty: The eligible surviving spouse of a first responder killed in the line of duty is allowed a 100 percent property tax exemption on his or her residence homestead if the surviving spouse has not remarried since the death of the first responder.

When and where should I file?

File applications by April 30 at your appraisal district office.

If you need more time, contact us at:

Lynn County Appraisal District
P.O. Box 789
Tahoka, Texas 79373
Telephone: (806)561-5477

The homestead exemption application is available online at www.lynncad.org and at https://comptroller.texas.gov/taxes/property-tax/forms/.

Sec. 1.085(a-1) Delivery of Certain Notices by E-Mail. [Effective January 1, 2024]

a) On the written request of the owner of a residential property that is occupied by the owner as the owner's principal residence, the chief appraiser of the appraisal district in which the property is located shall send each notice required by this title related to the following to the e-mail address of the owner:

(1) a change in value of the property;

(2) the eligibility of the property for an exemption; or

(3) the grant, denial, cancellation, or other change in the status of an exemption or exemption application applicable to the property.

(b) A property owner must provide the e-mail address to which the chief appraiser must send the notices described by Subsection (a) in a request made under that subsection.

(c) A chief appraiser who delivers a notice electronically under this section is not required to mail the same notice to the property owner.

(d) A request made under this section remains in effect until revoked by the property owner in a written revocation filed with the chief appraiser.

(e) After a property owner makes a request under this section and before a chief appraiser may deliver a notice electronically under this section, the chief appraiser must send an e-mail to the address provided by the property owner confirming the owner's request to receive notices electronically.

(f) The chief appraiser of an appraisal district that maintains an Internet website shall provide a form on the website that a property owner may use to electronically make a request under this section.

If you would like to request to receive electronic communication, please fill out and submit the following form.  The form can be downloaded by clicking the button below and is also located under the 'Services" Tab -> Forms and is located under Misc. Forms. "Request for Electronic Delivery of Communication with a Tax Official". Print, complete and send by email to info@lynncad.org