Big landowners dodge property taxes

[NoPasaran]

Deer play on fenced land near Spring above a huge underground reservoir holding the natural gas supply keeping Houstonians warm this winter.

The large herd also allows Houston Pipe Line Co. to receive a special agricultural valuation on its property, saving the company $400,000 in taxes it otherwise would owe Spring Independent School District.

In suburban Austin, a 1,757-acre ranch owned by Michael Dell has what Travis County appraisers call a "well-managed deer herd" that reduces the ranch's market value of $74.8 million to an agriculture value of $290,000. Dell, founder of the computer company that made him the second-richest Texan, saves $1.2 million on taxes he pays to Eanes ISD.

The fact that some of the state's wealthiest businesses and individuals are receiving tax breaks originally designed for families who made their living off the land is prompting lawmakers from both parties to question special-use valuations, commonly called "ag or wildlife exemptions."

-more-

http://www.chron.com/cs/CDA/ssistory.mpl/metropolitan/2985061

[fob]

1. There's a ranch in crawford that has a rare Connecticut Monkey

on it. I wonder what kinds of special breaks that asshole gets.

[mrbill]

8. Farmer Chimpy's 2004 property taxes for a $1000, alex

Last year (2004) the Lone Star Trust (aka chimpy) saved $24,561 by the use of ag/timber evaluations.

The 1577.22 acre "ranch" has a market value of $1,282,879. The combined property tax rate is a very cheap $2.12014 per $100. That's a potential tax of $27,198.83.

However with an ag/timber use value of $124,389, the property tax was $2637.22.

Big savings for farmerchimpy and the Lone Star Trust.

The ag/timber use evaluations are a very good thing for real Texas farmers and ranchers. Without such provisions every one of them would be out of business in one year. One quick example, a farmer grows 40 bushels of wheat per acre, wheat sells at $2.80 a bushel.. The market value of that acre is $2400, the tax rate is $3.00 per $100. How much does the farmer have left over after property taxes to pay for seed, fertilizer, tractor, plow, combine, fuel, bank note, land costs, irs, health insurance, profit.....................

The problem is when conneticut farmers and car dealerships abuse the system.

The McLennen County Appraisal District shows the Crawford "ranch" is made up 80 acres of dryland cropland, 450 acres of improved pasture and 1047.22 acres of native pasture.

Dryland cropland means crops without irrigation. Wonder if that tree farm is 80 acres?

Improved pasture is "improved" grasses that make cows fatter. To qualify for this category, in the last five of seven years you need to have cut hay or have had some cattle, horses or emu walking around and pooping to the average agricultural intensity of the area.

Native pasture is like improved pasture but with no improvements and also used for cattle, etc and hay.

Where's the beef on ranch de chimpy? Or big round bales of hay? Even pigs might count.

Clearing brush doesn't exactly qualify.

[crispini]

9. Jaysus Christ!

I pay more property taxes than the Chimperor! :mad:

[NoPasaran]

10. Me too

Which school didtrict is he stiffing?

[GOPisEvil]

11. Yikes! I paid $400 less than His Chimperial Majesty.

But then I don't have 1500+ acres, just a two bedroom house.

[montanacowboy]

2. Stop buying Dell Computers

He is one of *'s biggest backers

[The Backlash Cometh]

3. deer herd? Wait a minute. Don't the right-wingers want to decimate

deer herds? Why is this Dell fellow raising them?

[NoPasaran]

4. I think that $1.2 Million in taxes

That he's keeping out of the hands of the greedy schoolchildren of Texas has something to do with it.

[vpigrad]

5. No, they like to raise more of them...

so they can kill them! That's what those disgusting hunters live for. Also, by herding them, you don't have to work as hard in order to be able to kill more of them.

[illflem]

6. This is mostly good.

Another way to look at it is that in many areas when a ag or wildlife reserve exemption is issued the land can't be subdivided or the owner will have to pay the amount of taxes that the new land use will be for all the years it was in reserve plus penalties. In some states once it's in reserve that's it, the land can't be broken up ever.
In this way it's good that the tax break encourages preservation of open space, otherwise if the taxes were prohibitive the land would be divided and urbanized.

[no_hypocrisy]

7. Former NJ governor Christie Whitman saves a bundle on her taxes by

declaring her estate in toney horse country a "farm" by keeping a few horses, etc. on the property.