Texas Ag Exemption: What is it and What Real Estate Agents Should Know

The course objectives are for students to: 1) describe the criterion Central Appraisal Districts use when determining if land qualifies for agricultural use; 2) summarize how rollback taxes are estimated; 3) calculate an estimate of rollback taxes; and 4) identify sources of support for agricultural production and tax questions. The subject matter is relevant for real estate license holders in the State of Texas as 75.98% of the land in Texas is involved with production agriculture. It is also estimated that 67% of these landowners are over the age of 55, and Texas will experience the largest intergenerational land transfer and potential change in land use over the next 10 years. Real estate license holders that are abreast of property tax requirements and the financial ramifications for transitioning land out of agriculture will be better prepared for this change.