Agricultural Exemptions

The property at The Groves currently has a wildlife management plan in place and has a wildlife exemption, which is a type of agricultural exemption.  Tracts in Colorado County that are 6 acres or more are possibly eligible for an agricultural exemption.  The Colorado County Ag Manual states:  "Typically a minimum of six acres is required for native pasture cattle operations.  However land may qualify for open-space if it is leased and run as a part of a larger operation (in conjunction).  The tracts involved must average the six-acre minimum per owner.  For example, a ten-acre and a six-acre tract are used in conunctcion.  The average per owner would be eight acres and therefore qualify as to minimum acreage requirements." 

The tracts at The Groves with six acres of native pasture can qualify for an agricultural exemption if all requirements are met.  The minimum number of animals required for grazing is 5 cows, or 3 horses, or 10 stocker calves, or 25 sheep or goats, or 4 llamas or a combination of animals.

Applications for exemptions must be filed with the Appraisal District Office between January 1 and April 15.

For further information, please contact the Colorado County Appraisal District at coloradocountycad@sbcglobal.net or by phone at 979-732-8222.

Rollback Taxes

The real estate contract produced by the Texas Real Estate Commission for the sale of unimproved or ranch property states the following with regard to rollback taxes:  Section 13, paragraph B.  Rollback Taxes:  If this sale or Buyer's use of the Property after closing results in the assessment of additional taxes, penalties or interest (Assessments) for periods prior to closing, the Assessments will be the obligation of Buyer.  If Seller's change in use of the Property prior to closing or denial of a special use valuation on the Property claimed by Seller results in Assessments for periods prior to closing, the Assessments will be the obligation of Seller."

Thus, if a new owner chooses not to apply for an agricultural exemption, or fails to meet the County's requirements, the new owner will be responsible for rollback taxes.  Rollback taxes amount to the difference between the taxes calculated for the property with and without the exemption for the previous five years. 

The estimated rollback tax for property at The Groves was calculated by the Colorado County Appraisal District to be $201 per acre.  This amount will cover the entire rollback period.  These taxes are only due if the new owner changes the use of the land and does not apply for and receive an agricultural exemption.

Property is more valuable if it has an exemption because taxes are lower.  It is the responsibility of the person who changes the use of the land to pay the rollback taxes.