We are buying 7 acres off of a 39 acre tract that was used for ag and had AG exemption. Being that our tract is too small, we will not qualify for Ag exemption. We are planning on building on the land this year.

I have called Kaufman county 3 times and they said no back taxes will be owed as a result losing the ag exemption since we aren't converting to commercial. Does anyone have any experience with this and does that sound right. I just don't want a surprise taxation in the future when we aren't planning on it.

Put bees on it and keep ag exempt.

It can differ from county to county. Are the 32 acres that you aren't buying staying with the same ag exempt use?

They are all getting split up to smaller tracts and sold. 2 tracts will be 10 acres, the other 2 will be ~5 acres each.

Yeah, each county is slightly different (Bexar is 15 minimum for Ag Exempt, IIRC) so 7 probably won't cut it to keep it.

Bexar is 5 acres minimum with bees and a 1 acre homestead requirement. Need 6 total acres to get ag here in Bexar.

dtkprowler said:

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no back taxes will be owed as a result losing the ag exemption since we aren't converting to commercial.

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That's sounds like a damn good deal to me. I might suggest, though, getting the person's name and then documenting the date you spoke with him/her and then keep that in your file. You never know what will happen when the software that appraisal district's use determines that what was once Ag is no longer Ag and they auto-generate a nice bill for you.

Worst case -- they recently changed the rollback period to 3 years (from 5) and the interest rate owed to 5% (from 7%), so perhaps on 7 acres you wouldn't be talking a small fortune.

Thanks all for the response s. I will definitely get it in writing and document name and date. I will also look into bees. Always wanted to do that anyway.

Check this thread for bees. Better option then honey unless that is what you want

https://texags.com/forums/34/topics/3077792