What occurs when there is a change of use on land granted special use valuation for agricultural purposes?

When land that has been granted special use valuation for agricultural purposes experiences a change of use, it typically triggers specific tax implications. The correct response addresses how a change of use impacts taxation.

In the case of property that has been valued under special agricultural use, when the land shifts away from its agricultural purpose, it often faces an additional tax assessment to reflect its new use. This means that the landowner may be subject to back taxes, calculated based on the difference between the special valuation and the market value of the property prior to its change in use. This additional tax helps ensure that the property is taxed equitably according to its highest and best use rather than at the preferential agricultural rate previously applied.

This process is in place to prevent property owners from benefiting financially from the lower agricultural tax rates while using the land for purposes that generate more revenue and economic benefit, such as residential or commercial development. Therefore, the imposition of additional taxes in response to a change of use is standard practice within Texas property tax regulations.