The Clock Starts When You Close

Congratulations on purchasing land in Texas. Whether you bought a 20-acre ranchette outside Austin, a 100-acre cattle property in the Hill Country, or a weekend getaway in East Texas, you're about to discover something that many new landowners learn too late: your property tax exemption doesn't take care of itself.

Every year, new landowners in Texas lose thousands of dollars because they didn't file for agricultural valuation in time, didn't understand the process, or assumed the exemption transferred automatically with the property. It doesn't.

This guide walks you through everything you need to do — from before the closing table to your first filing — to secure your agricultural exemption and start saving on property taxes.

Before You Close: The Due Diligence You Should Do

Check the Current Valuation

Before closing, find out whether the property currently has an agricultural valuation. You can check this on your county appraisal district's website — most have an online property search that shows the appraisal method (market vs. agricultural/open-space).

If the property currently has an ag valuation, you're in a strong position. The valuation is established, the history exists, and you just need to file your own application to continue it.

If the property doesn't have an ag valuation, you'll need to start from scratch. This doesn't mean you can't get an exemption — but it means you need to plan your agricultural activity immediately and understand that it may take time to build the required history.

Understand Rollback Tax Exposure

If the property has an existing ag valuation and you change the use of the land, rollback taxes apply. This is critical to understand before you close. If you're buying the land to develop it, factor rollback taxes into your purchase price.

Many land sales in Texas include a rollback tax clause in the contract specifying who is responsible. Read this carefully. If the contract is silent on rollback taxes, the responsibility typically falls on the person who triggers the change in use — which could be you.

Talk to Your Appraisal District

Contact your county appraisal district before closing. Ask about their specific requirements for new owner applications, their deadline for new filings, and any documentation they'll need. Better yet, let us handle this research — it's part of our free assessment.

Your First Year: The Critical Window

File Your Application Immediately

If the property had an ag valuation, file your new owner application as soon as possible after closing. The deadline is typically April 30 of the tax year, though most counties allow late filing through June or later with a penalty.

Form 50-129 is the standard application. You'll need to provide your new ownership information, describe the agricultural use of the property, and demonstrate that you intend to continue agricultural operations.

Do not wait. Every month of delay increases the risk that your county treats the property as having a gap in agricultural use, which can jeopardize your valuation or trigger rollback taxes.

Continue Agricultural Operations

If the seller was running cattle and you plan to continue, keep the operation going without interruption. If you're changing the agricultural use (say, from cattle to beekeeping), implement your new operation as quickly as possible.

The worst thing you can do is close on the property, let it sit idle for months, and then try to claim agricultural use. Appraisal districts look for continuity of agricultural activity — gaps raise red flags.

Document Everything

From day one, document your agricultural activities. Take photos, keep receipts, log your work. If you're purchasing livestock, save the bills of sale. If you're planting, save the seed receipts. If you're leasing the land for agricultural use, get a written lease agreement.

This documentation will support your initial application and serve as the foundation for ongoing compliance. Our platform provides a structured way to log all of this information throughout the year.

What If the Land Doesn't Have an Existing Exemption?

If you're starting from scratch — buying land that's currently at market valuation — you'll need to build your agricultural history from the ground up. Here's the roadmap:

Year 1: Establish Agricultural Use

Begin agricultural activity immediately. Choose an appropriate use for your acreage, soil type, and location. For small acreage (5-20 acres), beekeeping is often the fastest path. For larger properties, cattle, hay production, or goats may be more appropriate.

Year 2-5: Build Your History

Continue your agricultural operation consistently, documenting everything. You need 5 of 7 years of agricultural use to qualify definitively, though many counties will grant valuation before the full 5-year history if your operation is credible and well-documented.

File Your First Application

When you've established sufficient history (or your county will accept a new operation with a management plan), file Form 50-129. Some counties will grant ag valuation after just 1-2 years of documented agricultural use if the application is strong.

Choosing the Right Agricultural Use for Your Land

The right agricultural activity depends on several factors that our mapping platform can analyze for your specific property:

  • Acreage — 5-20 acres → beekeeping; 15-50 acres → hay, goats, or small cattle; 50+ acres → cattle, crops, or wildlife management
  • Soil type — Sandy soils may favor different crops than black clay; our soil data shows your property's composition
  • Location — East Texas favors timber; Central Texas favors cattle and hay; South Texas favors brush country ranching
  • County standards — Your county's intensity requirements determine the minimum viable operation
  • Your lifestyle — How much time and effort can you invest? Beekeeping requires less daily attention than cattle

Common New Landowner Mistakes

  • Waiting to file: "I'll get to it next year" costs you a full year of tax savings — potentially $3,000-$10,000
  • Assuming automatic transfer: The exemption doesn't come with the deed. You must file your own application
  • Choosing the wrong ag use: Cattle on 5 acres won't meet intensity standards in most counties. Match your operation to your acreage
  • Ignoring county differences: Your neighbor's county may have different requirements than yours
  • Not documenting from day one: Starting documentation late creates gaps that are hard to fill retroactively

How Exemption.Land Helps New Landowners

We work with new landowners every week. Many find us before they even close on their property, which is ideal. Here's what we do:

  • Pre-purchase assessment: We analyze the property's agricultural potential, current valuation status, and estimated savings before you buy
  • County research: We identify your county's specific requirements, intensity standards, and filing procedures
  • Agricultural planning: We recommend the optimal agricultural use for your acreage using our soil and mapping data
  • Application preparation: We prepare your Form 50-129 and supporting documentation
  • Ongoing compliance: We monitor your operation and handle filings year after year

Closing on land soon? Call us before you close. Our free assessment takes 2 minutes and could save you from costly first-year mistakes. The earlier you plan, the more you save.