What may the buyer be charged if the property changes use from its current agricultural exemption?

When a property in Texas that is receiving an agricultural exemption changes use, the buyer may be subject to a rollback tax. This tax is implemented as a way to recapture some of the property tax benefits that were previously granted under the agricultural exemption. Essentially, if the use of the land switches away from agricultural purposes, the property may no longer qualify for the exemption, resulting in a tax liability for the period it was improperly exempt.

Rollback taxes are typically calculated based on the difference between the former agricultural tax rate and the higher rate that would apply to the property's new use, multiplied by the number of previous years the exemption was claimed. This mechanism is designed to ensure that property owners do not benefit unduly from exemptions when the land is used for purposes that do not support agricultural production.

In contrast, options like a fine or penalty do not specifically relate to the change in property use for taxation purposes, nor does a change of use fee encapsulate the financial repercussions that arise from a loss of agricultural exemption. The rollback tax is the specific tax liability that reflects the adjustment in property use status.