Texas ag exemption forms: 50-129 vs the ag or timber number

Two forms people both call the ag exemption

A lot of Texans use ag exemption to mean two different things, and they take two different forms. Sort out which tax break you actually want first, then you know which form to file:

• Property tax ag value: Form 50-129, filed with your county appraisal district. This lowers how your land is valued so the property tax bill drops.
• Ag or timber sales tax number: Form AP-228, filed with the Texas Comptroller. This lets you buy some farm and ranch supplies without paying sales tax. It does not change your land value.

Form 50-129: the property tax ag value

Form 50-129 is the application for 1-d-1 open-space (agricultural) appraisal. You send it to your county appraisal district, generally by April 30, to have qualifying land taxed on what it produces instead of market value. This is the one most landowners mean when they say they want an ag exemption, and it is what saves money on the yearly property tax bill.

The ag or timber number (Form AP-228)

The ag or timber registration number is a sales tax break, not a property tax one. You apply through the Texas Comptroller on Form AP-228, and once you have a number you can buy certain items used in farming, ranching, or timber production without paying sales tax. Having this number does not lower your land value, and it is not required to get the property tax ag value.

Which one you file

If your goal is a lower property tax bill on the land, file Form 50-129 with your county. If your goal is to skip sales tax on qualifying farm and ranch purchases, register for the ag or timber number with the Comptroller. Many working landowners end up using both, but they are separate applications with separate deadlines. Confirm the current forms and dates with your appraisal district and the Comptroller.