Buying property is the largest financial decision most Texans make. There should be clear property rights so they can use land as they desire.
Texas law provides certain property tax exemptions for agricultural land. Under current law, if a Texan decides to change the use of his or her land from agricultural uses to something else, the land holder must pay a substantial penalty. This is often called the “rollback rate”—but with this rate being easily confused with other trigger rates discussed this session, let’s call it the “clawback tax.” HB 794 would substantially reduce the cost of the clawback tax for agricultural purposes.