Shopping for acreage in Bosque County? Property taxes can swing thousands each year depending on whether the land qualifies for agricultural valuation. If you are hearing terms like “ag exemption” and wondering what it means for your purchase, you are not alone. In this guide, you’ll learn what Texas ag valuation is, what typically qualifies, how to verify a property’s status, and the practical steps to protect yourself before you close. Let’s dive in.
What ag valuation means
In Texas, an agricultural or open‑space appraisal values land based on its agricultural productivity instead of market value. When land qualifies, the taxable value is usually much lower, which can significantly reduce your annual property taxes. The goal is to encourage working land and open space by focusing on productive capacity rather than highest and best use.
State law sets the rules, and your local county appraisal district (Bosque CAD) makes parcel‑by‑parcel decisions. Whether a property currently receives an ag appraisal, and whether you can continue it after purchase, will directly affect your carrying costs. It can also create exposure to rollback taxes if the use changes.
Common qualifying uses
Land typically qualifies when it is devoted principally to agricultural use with enough intensity and continuity. Common examples include:
- Crop production, such as hay, row crops, orchards, or vineyards.
- Livestock grazing for cattle, sheep, or goats.
- Dairy or poultry operations.
- Nurseries, beekeeping, and certain horticultural uses.
- Timber production (a separate program with different criteria).
- Wildlife management (a separate valuation that requires a plan and qualifying activities).
Recreational use by itself, such as weekend hunting or riding ATVs, generally does not qualify. Wildlife management and timber are eligible paths, but each has its own documentation and standards.
How Bosque CAD decides
Bosque CAD applies state law to local conditions, looking for real, ongoing agricultural use with sufficient intensity. While there is no universal statewide acreage minimum, the CAD typically evaluates:
- Productivity and land use: pasture or cropland acreage, stocking rates, hay yields, soil capability, and land‑use maps.
- Income or intent: sales receipts, leases, tax returns, and other records that show agricultural activity over time.
- Continuity: a history of use, often across several recent years, depending on the specific program.
- Wildlife management: a written wildlife management plan and proof of activities like habitat work, water development, or population control, plus detailed recordkeeping.
Residences and house sites are usually appraised separately from the qualifying land. Confirm how much acreage, if any, is excluded as a house site because this changes your taxable acreage.
Verify a property before you buy
Before you rely on an ag valuation for budgeting, gather evidence and get it in writing. Use this buyer checklist:
- Current CAD property record card showing use code and appraisal classification.
- Latest property tax statement reflecting agricultural or open‑space valuation.
- Copy of the seller’s ag appraisal application and any approval letters from the CAD.
- Leases and income records: grazing leases, hay sales, livestock sales, crop receipts, invoices for seed or fertilizer, and baling records.
- FSA and NRCS materials: acreage maps and program records that document past use.
- Photos and recent aerials that show fences, pasture, crops, water improvements, and handling facilities.
- Written confirmation from Bosque CAD about how house sites are treated and what acreage is excluded.
- Seller disclosure of any recent or planned changes in use, subdivision, or new improvements.
Ask the CAD directly: What is the parcel’s current appraisal classification and effective date? Is an application on file? Has there been any rollback assessment? If you intend to continue the use after closing, what documentation will they require from you?
Rollback taxes and changes in use
When qualifying land stops meeting the standards for agricultural or open‑space appraisal, rollback taxes may be assessed for a set number of prior years, plus interest, under state law. The CAD calculates the rollback. Because rules can change, confirm the current rollback period and how it would be calculated on the specific parcel you are buying.
A change in ownership alone does not automatically disqualify land. However, the new owner must continue qualifying use and typically must reapply or confirm use with the CAD. If you convert part of the tract to non‑ag use, such as building additional homesites or starting commercial activities, the CAD will review that acreage and may assess rollback taxes for the affected portion. If there is a legitimate agricultural lease in place, continuity can be maintained, but you still need to verify intensity and documentation.
Step‑by‑step for Bosque County buyers
Follow these practical steps to reduce risk and keep your purchase on track:
- Call Bosque CAD. Request the property record card, current appraisal classification, any ag appraisal application on file, and any rollback history.
- Confirm tax history. Check with the Bosque County Tax Office about past assessments or any recorded rollback or penalty taxes.
- Gather documentation. Ask the seller for leases, receipts, hay or crop records, and photos. Request FSA maps and any program participation records.
- Verify house site treatment. Get CAD confirmation of excluded homesite acreage so you know your taxable acres.
- Plan your future use. If you will continue livestock, crops, or hay production, outline how you will meet intensity standards. If wildlife management is your target, start the plan process early and line up recordkeeping.
- Involve pros. Consider a local real estate attorney for deed restrictions or potential carve‑outs, a CPA for tax implications, and a land or wildlife consultant if pursuing wildlife valuation.
- Reconfirm in writing. Before you close, obtain written guidance from Bosque CAD on what they will expect from you after the change in ownership to keep the valuation.
When wildlife or timber is the goal
Wildlife management and timber both offer paths to a reduced tax appraisal, but they are not the same as traditional crop or livestock use. Wildlife valuation requires a qualifying wildlife management plan and evidence that you are performing approved activities, with documentation to match. Timber has its own eligibility and recordkeeping standards. If these fit your goals, involve local specialists and speak with the CAD early so you understand exact requirements.
Local help when you need it
Buying land with an ag valuation can be a smart move, but you should verify status and future qualifications before you close. If you want a clear, local plan tailored to your goals, reach out to Cherie Laake for guidance on parcel research, documentation strategies, and the right contacts at Bosque CAD and other agencies.
FAQs
What is ag valuation in Texas?
- It is a property tax appraisal that values land based on agricultural productivity rather than market value, which can significantly reduce taxes for qualifying land.
What uses typically qualify for ag valuation?
- Common qualifying uses include livestock grazing, hay and crop production, dairies or poultry, nurseries or beekeeping, and separate programs for wildlife management and timber.
Does Bosque County have a minimum acreage requirement?
- There is no universal statewide acreage minimum. The CAD looks at real, ongoing use and whether the intensity and productivity meet local standards for qualification.
Does hunting by itself qualify for ag valuation?
- Recreational use alone, such as hunting, generally does not qualify. Wildlife management may qualify if you have an approved plan and perform required activities with documentation.
Will an existing ag valuation transfer to me automatically?
- No. A change in ownership does not automatically disqualify the land, but you must continue qualifying use and satisfy the CAD. Confirm requirements in writing with Bosque CAD.
What are rollback taxes and when do they apply?
- Rollback taxes recapture prior tax savings when qualifying land ceases to meet the standards. The CAD calculates the rollback for a set number of prior years plus interest. Verify specifics with Bosque CAD before you close.
What documents should I request from the seller?
- Ask for the CAD property record card, current tax statements, ag appraisal application and approval letters, leases, income and production records, FSA maps, and any photos or aerials that show agricultural activity.
