Roll back Tax – I mean, I think, OK, we’re going to throw this rollback tax in as a as another topic and talk about it, you know, on its own. So Shana Acquisto broker real estate. This is Dr. Blake Bennett. What do people call you, like the ad guy or.

Well, the ad doctor that they just usually call me boy, the truth.
This is. But, yeah, I don’t I don’t get caught up in titles.
I spent a lot of time in school, but that’s because I just I love college.

I didn’t want to leave. Who wants to leave college? Oh, wow. Well, absolutely. But parents, you would like your book and yes, I have children in college now and I cannot wait for them to get I mean, me personally, I just kept getting a degree because I didn’t want to leave.

I look at look at you now. You’re very successful. You have such a wealth of knowledge and we’re so thankful that you’re here.

Well, and that’s one thing is that, yes, I gained the knowledge through school, but but my position within Texas I life we are a hub for education and we have fingers that reach out and we have contacts that reach out to all of these different agencies. That’s where I’ve really gained my knowledge in this subject, because I see it from the from the land owner side. And I’ve gained knowledge from the central appraisal district on. Here are some problems that could be faced.

I’ve gained knowledge from the real estate industry, not just from agents. My wife happens to be a title, yet manages a title company. And so, you know, I’ve gained this knowledge and pool in this information. And so I feel like at times my head’s about to explode. Yeah, I can it with everything that we could talk about. But you. Absolutely. You you mentioned the back.

Yes. Is let’s talk about the help that that can be. And if you, if, if, if land is valued at agriculture with the central appraisal district and agriculture stops, then you’ve you’ve changed the use. And at that point a rollback tax is charged again. It’s the difference between what you were paying, which is much lower property taxes and what you would have paid if you were paying property taxes based on market value.

They looked at that for the last three years and had five percent interest per year, OK, so that it definitely could really hurt somebody.

It can. And the key for real estate agents is, did you know that who pays that roll back tax is negotiable at the closing. Exactly right.

It’s equivalent to if you’re buying some land and it currently has the exemption, if you don’t plan to do the exemption or you’re planning to do some other, let’s say you’re going to develop it.

Yeah, we have agricultural land just down the street that, yes, one day will be developed. The reason it’s in agriculture today is because they’re going to pay lower property taxes, but eventually they will develop that land. So if it is sold, then it’s negotiable as to who pays it.

Now, another way to negotiate, we have some great negotiators, by the way, absolutely. Real estate agents are the best they can do that you should have negotiated a contract.

It would have been done three years ago. Exactly.
And then you would have got more than 160. That’s all right. Exactly.

Whatever. So. Right. So, yes, the rollback is a huge issue. And and you see some people that lose their agricultural use and they’re forced to sell because they cannot they cannot afford it.

So I have a question on that, so we have we have I’ve seen around here these fields that are agricultural. They used to have corn. Now they have cotton, right. Crazy. All of a sudden it’s shifted from corn to cotton. So if you change. Does it matter?

No, it doesn’t. The central appraisal district is not going to not going to worry if you go from corn to cotton to cattle to hay, they’re not going to raise an eyebrow. They’ll ask you to update their records. If you buy or sell that land, they could ask you to come in and reapply.

If they if they are suspicious that you’re not doing things right here, we may have you reapply. About 30 percent of the land in Collin County probably gets asked to reapply year. OK, and you get a month. Yeah, exactly. You have to. Yes.

Well, you could lose your ag exemption if you did OK, because, you know, they send these letters out to our clients after that purchase saying, hey, we’ll pay for the home and we tell them, no, don’t don’t do well, I’m not going to another state agency.

I’m not going to say do or don’t that you can say that all day long.
But but I another state agency.

So I understand where you’re coming from whenever you say no, I understand. And I can say that I bought and sold houses around the Metroplex since being here. Ninety nine. And I understand why you say don’t don’t fill out some paperwork, but if you own agricultural land in the central appraisal district, sends you a letter asking you to reapply or to change your name over because you just bought the property. Absolutely filled that out because you don’t want to lose that argues.

Sure. OK, so if it already was in existence and then you purchase it. Yes. You don’t it doesn’t transfer.

Not automatically. It will transfer. You just have to fill out a change in ownership similar to what you would with your homestead. You buy a new house, you fill out your homestead exemption and send it into the central appraisal district. Same thing here. You buy agricultural land. If you’re a developer, you’re buying something along Sam Rayburn tollway, right? Fill out the paperwork.

Send it in. Hey, there’s been a change in ownership. We’re going to continue on with agriculture and then you just slide right in and go. And I just wonder, how do they know? How do they know if there’s been a change in owners ?
How do they know if you’re continuing?

Well, they  do site inspections. OK, I know that some counties do at least two. They’ll do a job with the reserves. Yes. And then they’ll also do aerial photography around here. And you can see the you can see the writing on  a newspaper with that aerial photography, they can zoom really close.

They know what you’re doing. Well, I think it would be silly with all the development that goes on around here sometimes. Yes. Now and then, you know, sitting down with the central appraisal district, I ask them, what do you do those inspections? And they said, yeah, it’s time to leave.
They wouldn’t let me know that. So don’t ask me that question because they they wouldn’t. They wouldn’t.

It wouldn’t be for a quick side question. The cads. Yes. Like you. Yes, absolutely.

Because what I’ve done is I’ve tried to take the stance of I want to rule number one, I started this this job in ninety nine. And I felt like I was just ineffective because we were catching people coming to us asking for education after they had bought the land. And so about three years ago I tried something different. I said, let me try and catch the gatekeepers. Which are you? You’re the ones you’re the ones that that turn these people loose on the land. You’re the ones that help them buy it.

And so if I can provide you education and then let you know that I’m a resource to help you, we can work together. We can find the right land for the people that have a plan ahead of time. And then they buy the right land and they’re off and running. And we can just we can take over from there, OK? They already have a relationship with us ahead of time so we can work in conjunction.

And the Central Appraisal District knows that I’m trying to make everything more efficient so that whenever someone applies to the central appraisal district, they know they’ve already jumped through all of these things. They already have these all these connections. They already have the knowledge and education. And we’re going to OK, that plan. Let’s go. So I’m trying to pull everything together and make it into one working unit, OK?

I like that. You know, everyone should be working together. Absolutely not against each other.

I’ve got my my niche, my my role in this in this whole wheel. And you’re one piece of it. The Central Appraisal District, one piece, the landowners one. Let’s coordinate everything. Let’s let’s work together so that so that ultimately everyone can be successful. Because if that. And donors happy they’re going to tell other people and then that the name of your game.

Yeah, BIRTWISTLE referrals.
Well, maybe you could talk to them about property taxes and the requirements. Maybe we can grow some corn in the back corner of our house and you might get caught in the acreage standpoint here in the.

And also remember, remember, the little one of the principal use has to be agriculture. Yeah. The principal use in your backyard. It’s still your homestead.

It is. So you’re going to probably get caught there. So in talking about that, what so if someone decides they are going to grow corn and that’s going to be there, they’re going to have this production or they’re going to have bees or they’re going to whatever it may be, what are there are a lot of requirements throughout the year to that they have to, you know, show them and prove of what they’re doing or have a certain amount of the central appraisal district.

The appraisers themselves, they’ve usually got a background in agriculture. It would be like asking you, let’s go out and let’s evaluate some homes you can drive up in the first five minutes that you walk into a house. You know, this is what we’re going to process it. I mean, yeah, you’ve got you’ve got some ground based just knowledge of that industry. The appraisers are the same way.

Some of them may require that you turn in some receipts. They may may say, you know, we’re kind of shaky on this one. Others they know whenever they drive by. Yeah, they’re doing it right. No, they’re not. They’re they’re trying to escape the system. They understand they’ve seen the the the scams. They’ve seen the scam of they buy hay and roll it out in the middle of the night and say, look what I’ve cut.

No. Oh, yeah. We’ve they’ve seen that. They know it don’t just shoot straight with don’t try and take them. Just try to do it. Right. Yeah. And one way to do it and most likely they’re going to see exactly. And if you’re trying and you say I’ve I’ve worked with extension of work with the county agents, I’ve come up with this plan. Here’s how I’m working this plan.

Likely they’re going to be OK. You’re going to be just fine.

Ok, well, this is all great information. And like I said, we’re going to have we’re going to have Blake come and talk a little bit more about these these topics with all of us, with all of our agents at some point in the next month, month and a half.

So you guys are going to want to clear your schedule because there’s there’s a lot to know. And it’s, you know, like you said, with so many, I can’t believe there’s that much Eggland still left in Collin County. And if the average age is up there, then we need to be familiar with this and know how to deal with it because we need to be competent, competent agents. Right?

Absolutely. And there is a wealth of money to be made because a lot of this land in Texas alone is going to be changing hands in the next ten years.

Yeah. So get ready. Get ready, everybody. So we’re going to close this topic out and then we’re going to ask some questions. Lightning round, lightning round. And if you guys have any questions, please, Chat come in and we’re going to ask him live and put him right on the spot right now.

Episode Recorded Live on YouTube 3.10.21

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