Roll back Tax – Shana Acquisto real estate broker here with Blake Bennett and we’re talking about today’s AG Wednesday and we’re going to talk right now about how the CAD interprets that intensity. Well said.

Interpret Intensity

That was really that’s the one that catches most people. And I think that the one one thing that I do need to give is as far as a disclaimer, we have an agriculture all around us. We do. Collin County, still more than 50 percent of this county is still in agriculture, believe it or not. Much over 50 percent of Collin County still in agriculture. We do see cornfields all over more than 30 percent of Dallas County is still in agriculture.

There’s a lot of agricultural land. In fact, if we look at the entire state, seventy five percent of the state of Texas is still in agriculture. Wow. But we have a vast majority of people that own land, that farmland that are older. They’re in my age group and we’re getting older every single day.

Well, you know, we are we are got I got my covid shot yesterday. I qualified, so, you know, I’m getting there.

So what that tells me is that in the next 10 years, we’re probably going to see a massive turnover in land ownership across the state. So real estate agents need to be ready and they need to know how you handle these real estate deals with agriculture. Yes, because the industry that I work in is changing. That’s why I’m here.

Wow, that’s crazy. I didn’t realize that it is. And, you know, if somebody comes in and buys the land and they don’t carry on the current production or keep that exemption, then the taxes are going to go exactly right.

The taxes can go through the roof. Plus, you’re looking at paying a roll back tax. If you stop agricultural production altogether, you will face having to pay a roll back tax. That’s the difference in the last three years and what you have been paying in property taxes, which is much lower. And what you would have paid at market value plus five percent interest per year every five years.

My goodness, it’s so so the intensity rolling it back to intensity, I think I ran down a rabbit trail here and say something else, but you bring it back to intensity. That’s what the one that catches most people.

The intensity on your property has to be similar to what we see in the rest of the county. OK, that’s why each individual central appraisal district can interpret it their own way in each do so. If you’re in Denton County, Texas, do not consult the Collin County Central Appraisal District, asking them questions totally different, even though those counties are right next to each other.

Yeah, so they are looking for what do we normally see in this county? And maybe that’s the number of head of livestock that are out there. How many are out there? Maybe that is what are we looking at yield wise? How many trees should  be planted on this property in order to qualify? That’s the key, is the intensity.

Ok, yeah. Wow.

And there’s no one size fits all for the state of Texas as there shouldn’t be. Yeah. I mean, after all, if there was a one size fits all, everything would be the same in El Paso as it is in Dallas or Nailer or as in Corpus Christi. It doesn’t work so that the central appraisal districts are given that leverage and that ability to interpret those laws as they see fit, as they see that they apply to the county.

Interesting. Wow. So they’re all different. So you need to know the county that you’re looking at and living in and know that they’re all different. I think that’s really important to know. And, you know, I would like to go back to the rollback tax because that could bankrupt someone.

Episode Recorded Live on YouTube 3.10.21

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