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Texas Agriculture Archive

February 7, 2003

'Real' Christmas trees outpace artificial trees
Christmas tree sales depend not only on consumer budgets, but also on competition from artificial trees.

In 1989, sales of real and artificial trees were equal, but by 2000 the share of real trees was 39 percent.

With estimated retail prices for real trees averaging $36 per tree in 2002, sales should approach $1.2 billion, a rise of 3 percent from 2001.

Poinsettia sales are expected to continue growing, up 2 percent to $260 million at wholesale.
Source: ERS/USDA; Agricultural Outlook, December 2002

Small beef operations control majority of land
Small operations produce the majority of beef cattle in the U.S., and control 74 percent of the land dedicated to beef cattle production.

Small enterprises producing beef cattle can be divided roughly into two groups: full-time operations for which agricultural production is a significant source of income, and part-time operations.

Differences among these operations and with large ones, in areas like production, marketing, and land stewardship, have implications for farm policy.
Source: ERS/USDA; Agricultural Outlook, December 2002

IRA limit rose in '02
The limit for annual contributions to Individual Retirement Accounts (IRAs) rose to $3,000 in 2002.

Qualifying taxpayers who attain the age of 50 or older during the tax year can contribute an additional $500 for a total of $3,500 annually, thanks to a "catch-up" provision in 2001 tax law.

IRA contributions are tax deductible for self-employed persons (most farmers and ranchers). If you haven't yet funded your IRA for the 2002 tax year, you can do so until you file your taxes or until April 15, whichever is earlier.
Source: Doane's Agricultural Report, Jan. 24, 2003

Don't forget these income tax tips!
•The threshold for filing income tax form Schedule B for interest and dividends increased to $1,500 for 2002, up from the previous $400 level. The change does not affect tax liability. It simply reduces the reporting requirements by exempting those with less than $1,500 in interest and dividends from reporting the detail of amounts paid from each source. IRS estimates this change will reduce the filing time requirement for 15 million people.

•You must keep written travel records to deduct expenses for meals and lodging for business-related activities. A Tax Court ruling found that oral evidence is not credible support for those deductions. Keep a log of the date and purpose of the travel to substantiate travel expenses.

•The standard deduction for business-related auto mileage drops to 36 cents in 2003 from 36 ½ cents in 2002.
Source: Doane's Agricultural Report, Jan.13, 2002

Guess what? Property taxes didn't decline!
For tax year 2001, local taxing units levied more than $25 billion in property taxes, about 12 percent more than in tax year 2000. Local appraisal districts reported 2001 total appraised property values increasing about 11 percent.

Appraised values are property values established by county appraisal districts (CADs) before deducting for exemptions to arrive at taxable values. Local taxing units include counties, school districts, cities, and special districts such as junior colleges, hospitals, utilities, flood control, and rural fire districts. Exemption amounts and types offered by taxing units may vary.

School property taxes—imposed by 1,035 independent school districts and representing 60 percent of total property taxes—grew by 13 percent to reach more than $15 billion in 2001. Local school taxable values (after exemptions) increased 11 percent to reach $943 billion.

City property taxes increased 10 percent, to total almost $3.9 billion. Total city taxable property values for 1,027 cities increased slightly above 10 percent to reach $691 billion.

County property taxes exceeded $3.5 billion in 2001 for more than an 11 percent increase from 2000. Looking at county general fund tax rates, county taxable values increased almost 11 percent to reach $1 trillion.

The levy of 1,288 special districts rose by 13 percent to total more than $2.7 billion on $2 trillion in taxable values. Special districts' boundaries may overlap with other special districts and may extend into more than one county.
Source: Statement, Carol Keeton Strayhorn, Texas Comptroller of Public Accounts, November 2002