In Texas, differential assessment is available for agricultural land that has been devoted to agricultural or timber production for at least five of the past seven years. If the land qualified for agricultural appraisal and its use is changed to a non-agricultural use, a rollback tax is owed for each of the previous five years in which the land received the lower appraisal. The rollback tax is the difference between the taxes paid on the land's agricultural value and the taxes you would have paid if the land had been taxed on its higher market value. In addition, 7-percent interest is charged for each year from the date that the taxes would have been due. Texas Comptroller of Public Accounts website http://www.window.state.tx.us/taxinfo/proptax/tx96_295/land.html (describing the newer of two agricultural appraisal laws; visited on 7/23/07).

Russell Kashian, 2004. State Farmland Preferential Assessment: A Comparative Study, Journal of Regional Analysis and Policy, (2004)34:1-12.

Article — “Since 1956, states and local governments have expressed interest in preserving agricultural land though various tax programs. These programs encourage landowners to continue farming, both to preserve the production of food and to preserve a rural link within the region. These programs begin in the 1950s with state legislation centered on the provision of reduced taxes on farm real estate. As time progressed, these programs expanded throughout the United States and are now established throughout the nation. However, the benefits, terms, and penalties differ between states. This paper summarizes the various programs that are currently in place.”