Ag valuation can sharply cut the tax bill on rural land in Bosque County

Texas law lets land that is actively used for farming or ranching be taxed at a lower value. Instead of using what the land would sell for, the tax is based on what the land can produce. This is called a 1-d-1 or open-space valuation. It can cut the tax bill on rural land significantly.

Bosque CAD sets the rules for who qualifies. In general, the land must have been used for agriculture for at least five of the seven years before you apply. Pasture land usually needs to support a minimum number of animals. Wildlife management is also an approved use. Bosque County farms and ranches raise cattle, sheep, hay, wheat, and cotton.

Watch out for the rollback tax. If you buy land that already has ag valuation and then change how it is used, you owe back taxes. That means the difference between what you paid and what you would have owed under full market-value taxation — plus interest — for the three years before the change. Look at the Bosque CAD guidelines before you buy rural land. Call (254) 435-2304 or visit bosquecad.com.