Does a Texas ag exemption transfer to the new owner?

Not as paperwork. The lower valuation belongs to the land and can continue after a sale, but Tax Code 23.54(e) generally ends the approved application when ownership changes, so the buyer generally files Form 50-129 in their own name. Check with your appraisal district.

What happens if I miss April 30 the year I buy?

Section 23.541 generally allows a late application until the appraisal review board approves the appraisal records for that year, with a penalty of 10 percent of the tax saved. It is a real option, just an expensive one. Ask your appraisal district how much time is left.

Do I have to build up five years of agricultural use again?

Generally no. The five-of-seven-years history in Tax Code 23.51 attaches to the land rather than to the owner, so a buyer generally inherits it. Confirm what the district has on file for your parcel. This is not legal or tax advice.

Bought land with an ag exemption? File Form 50-129 by April 30

Does an ag exemption carry over when you buy the land?

The lower value belongs to the land, but the paperwork does not follow you. Under Tax Code 23.54(e) the approved application generally stops applying when ownership changes, so the new owner files Form 50-129 in their own name, generally before May 1 of the first year they own it. The record of agricultural use stays with the land, so you are generally not starting the five-year clock over. Confirm what the appraisal district has on file for the parcel.

Last verified September 2026. Source: Texas Tax Code §23.54.

The application ends with the sale, the history does not

Tax Code 23.54(e) generally provides that an approved 1-d-1 application stops applying when ownership of the land changes, which is why the appraisal district expects a new one from you. What does not reset is the record of how the land was used. The five-of-seven-years test in Tax Code 23.51 looks at the use of the land, not at who held the deed, so a working place you just bought generally arrives with its history intact. Ask the district what use and what intensity it has on file before you file anything.

File Form 50-129 in your own name before May 1

Tax Code 23.54(d) generally sets the filing date at before May 1, which in practice means April 30. Use Form 50-129, the application for 1-d-1 open-space appraisal, and send it to the appraisal district for the county the land sits in, not to the Comptroller. If the date has already passed, section 23.541 generally allows a late application until the appraisal review board approves the appraisal records for that year, and an approved late application generally carries a penalty of 10 percent of the tax saved. Ask the district how much time is actually left before you count on either one.

What to settle before you close

Most trouble with an ag valuation after a sale is avoidable at the closing table, while the seller is still answering questions. Work through these:

Whether the land currently carries an approved 1-d-1 valuation, and for what use.
What the appraisal district has on file: the acreage, the use, and the intensity it was approved at.
Whether you can keep that same use running through your first year of ownership.
What a change of use would cost. Tax Code 23.55 generally bills back the tax saved for the three years before the change.
Who is filing the new application, and by what date.

Texas Farm Credit on buying land that carries an exemption

Start with your county

How much land and how much activity is enough is set county by county, not by the state, so the standard your seller met is the one your county publishes. Start with the county the land sits in, then confirm the numbers with the appraisal district:

Check my property

This page is general information, not legal or tax advice. For your specific situation, talk to your county appraisal district or a licensed professional. ExemptLand prepares the drafts; you review and file.

Bought land with an ag exemption? File Form 50-129 by April 30

Does an ag exemption carry over when you buy the land?

Last verified September 2026. Source: Texas Tax Code §23.54.

The application ends with the sale, the history does not

File Form 50-129 in your own name before May 1

What to settle before you close

Most trouble with an ag valuation after a sale is avoidable at the closing table, while the seller is still answering questions. Work through these:

Whether the land currently carries an approved 1-d-1 valuation, and for what use.
What the appraisal district has on file: the acreage, the use, and the intensity it was approved at.
Whether you can keep that same use running through your first year of ownership.
What a change of use would cost. Tax Code 23.55 generally bills back the tax saved for the three years before the change.
Who is filing the new application, and by what date.

Texas Farm Credit on buying land that carries an exemption

Start with your county

Check my property

Bought land with an ag exemption? File Form 50-129 by April 30

Does an ag exemption carry over when you buy the land?

The application ends with the sale, the history does not

File Form 50-129 in your own name before May 1

What to settle before you close

Start with your county

Related

Bought land with an ag exemption? File Form 50-129 by April 30

Does an ag exemption carry over when you buy the land?

The application ends with the sale, the history does not

File Form 50-129 in your own name before May 1

What to settle before you close

Start with your county

Related