Selling Land With an Ag Valuation in Texas: What Happens to the Tax Break When the Place Changes Hands
There is a letter from the appraisal district that a good many Texas landowners have kept in a drawer for thirty years without reading it twice. It came the year somebody, maybe a father, maybe the owner himself, filled out the application for agricultural valuation, the one most folks call the ag exemption, and it’s the reason the tax bill on a few hundred acres of pasture has stayed modest ever since. Nobody thinks much about it while the cattle are on the grass. It comes up the day the family starts talking about selling, usually as a question somebody asks across the room: what happens to the ag?
It’s a fair question, and the answer is plainer than most people fear.