WHY DOES RIVER MOUNTAIN RANCH NEED A CATTLE COMPANY?
Property owners in the River Mountain Ranch (RMR) subdivision are eligible for the Hays Country Appraisal District’s 1-D-1 Agricultural Property Tax Exemption, commonly referred to as an “ag exemption.” An agriculture exemption can result in significant annual property tax savings for a property owner. To qualify for the exemption the subdivision’s property owners must contact HCAD for information about how to transfer or obtain an ag exemption. As a part of this process, the HCAD will require a signed copy of a grazing lease with the subdivision’s cattle company.
WHAT IF YOU DO NOT WISH TO HAVE A GRAZING LEASE AGREEMENT?
In accordance with the bylaws and covenants of the RMR Property Owners Association (RMRPOA), any owner of any tract of land who elects not to have livestock grazed upon their property, will need to fence off their property at their expense. Any change of use of property could result in a rollback tax which will be the responsibility of lot owner.
WHAT IS THE RELATIONSHIP BETWEEN THE RMRPOA AND THE CATTLE COMPANY?
During the regularly scheduled board meeting on May 13, 2010, the RMRPOA Board took action to ratify the grazing lease agreement between RMRPOA and the River Mountain Ranch Cattle Company (RMRCC) plus the associated terms & conditions of the agreement. The document can be viewed at this link: Ratification Agreement. Note that the grazing lease agreement is between RMRCC and the property owner.
WHO IS RMRCC?
The River Mountain Ranch Cattle Company (RMRCC) was established on March 31, 2010 when five families living in the RMR subdivision formed a partnership and purchased the assets of the prior cattle operation who no longer wanted to continue providing this service. This ensured a seamless transition in the operation protecting the 1-D-1 eligibility. The RMRCC Grazing Lease Agreement and the steps for completion are listed below.
ARE THERE ANY COSTS ASSOCIATED WITH THE RMRCC GRAZING LEASE AGREEMENT?
Running a cattle in a subdivision is a very different operation than running cattle on a traditional ranch. Roundups in a subdivision are far more challenging and expensive when the “range” contains over 150 houses and yards. In addition to this higher maintenance cost the other big expense for RMRCC is the obligation to keep the 7 miles of RMR fences repaired. In addition to normal aging, Mother Nature seems to find a way to pull down large sections of the fences every year with events like flooding and trees falling from drought and wind. After four years of looking for a solution to cover these additional costs for operating a cattle company in a subdivision, RMRCC determined that an annual fee would be the most reasonable solution. The $50 annual fee is a very small part of the annual tax savings received by each lease holder, and it is sufficient to keep the cattle operation sound and capable of continuing this very valuable service to RMR property owners. The grazing lease annual management fee invoice is sent out each January.
WHAT ROLE DO THE RMR PROPERTY OWNERS HAVE BESIDES FILING THEIR GRAZING LEASE?
There is an advantage to running a cattle operation in a subdivision—more eyes to keep a watch on the herd. Anytime a homeowner observes an animal in distress, an open gate, or a downed fence they should contact one of the partners of RMRCC (see the contact list below). The partners are very grateful for this watchfulness and assistance, and they are also very grateful for the extra water tanks some of our neighbors maintain for the herd during the hot summer and the dry winter months. As long as the cattle operation is mutually beneficial to the subdivision, the county, and RMRCC, the RMRCC partners plan to keep providing this valuable service.
RMRCC CONTACT LIST
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WHAT DO I DO WHEN HAYS COUNTY REQUESTS ADDITIONAL LESSEE INFORMATION FROM ME?
When you receive an ag exemption renewal notice from the HCAD, or when you request an ag exemption transfer from HCAD, as a part of that packet, you will see a form called “Additional Lessee Information.” The property owner must return the document with the words “see Lessee, River Mountain Ranch Cattle Company—already on file with HCAD.”
HOW DO I GET MY RMRCC GRAZING LEASE AGREEMENT?
– The document below is the “RMRCC 2020 Grazing Lease.” Click the link below and download either the Word or PDF version.
– Complete the highlighted areas. NOTE: A complete description of the property is needed under roman numeral “I”; all of this information comes from your closing papers or it is online at www.hayscad.com, under the “Property Search” tab:
- HCAD ID #
- Total Acres
- Total Acres Leased
- RMR Perimeter Fence Lot: [this will be completed by RMRCC]
– Sign the completed lease agreement and contact RMRCC, Len Brinkman at 512-497-4596.
– The document will then be signed by the RMRCC Managing Partner, Len Brinkman, who will keep a copy for RMRCC records. An RMRCC representative will contact the property owner to coordinate how to get the document back to them for filing with the County.
– If you have any questions, contact Len Brinkman at above listed contact numbers.