Changing Ag Land Use Triggers a Rollback Tax

Land with farm or open-space value is taxed on what it produces, not on full market value. That can lower the tax bill by a lot, which is why the rollback rule matters.

When the land stops being used that way, Texas can reach back for the difference. The rollback tax compares the lower ag taxes that were paid with the full-market taxes that would have been due for the past three years.

Near Dallas, that gap can be large enough to change a deal. Ask for a rollback estimate in writing from the Dallas Central Appraisal District while the deal is still open.