Ag valuation can lower taxes on rural Bexar County land

An 'ag exemption' is not a true exemption. It is a special way of valuing land. The land is taxed on what it can produce agriculturally, not on what a developer might pay. Near San Antonio, where land prices are high, this difference can be large.

To qualify in Bexar County, land outside city limits must have been used mainly for agriculture for at least five of the past seven years. The use has to be real and active. Token activity meant only to cut the tax bill won't cut it. Qualifying uses include growing crops, raising livestock, beekeeping, and wildlife management. The application deadline is April 30.

Rollback taxes are the thing to keep an eye on. If you stop farming the land and switch it to another use, you owe back taxes. That means paying the difference between what you paid and what you would have paid at market value, for the prior three years. Texas eliminated the interest that rollback bills used to carry, effective 2021. Check current rules with BCAD before buying rural land. Visit bcad.org for Bexar County eligibility details.