AG Rollback form 50-789

[Nasi K.]

Hi,

We recently (Aug 2024) bought commercial land of around 2 acres. this was part of bigger commercial lot (around 25 acres) which had AG exemption and so the taxes that they paid was around $20 each year. we received a 'AG ROLLBACK' letter from the appraisal district that starting 2025 tax year, we will be taxed at it market value resulting in additional taxes, interest and possible penalities for 3 prior years. Can you advice what that meant? It said this is pursuant to tax code section 23.55

It said I can protest in next 30 days

1) Does this mean we have to pay taxes and interest for prior 3 years?

2) Would you guys know how much will the amount be approximately?

3) We have prorated taxes between seller and buyer for this amount? 

4) does protest work because we are still part of bigger 25 years