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agricultural use. Selling the property does not trigger the 1-d-
1 rollback; rather, it is the determination of a change in use
that triggers the rollback.
The calculation of the rollback tax is based upon the
difference between "market" and the property's agricultural use
value. (The term "market", as used in Tex. Tax Code Ann. sec.
23.55 (West 1992), appears to be used synonymously with "fair
market value.")
The purchaser of the Property, Pulte Home Corporation of
Texas (Pulte Home), required SLR to be totally responsible for
any and all rollback taxes assessed or to be assessed against the
Property and to take all steps necessary to trigger the rollback
provisions immediately prior to the date of conveyance of the
Property by SLR.
By letter dated September 27, 1990, petitioner notified the
Dallas Central Appraisal District, Dallas, Texas, that the
agricultural use of the Property was discontinued as of September
25, 1990. The Dallas Central Appraisal District notified SLR on
December 12, 1990, that the Property no longer qualified for
open-space assessment and that the Property was subject to
rollback taxes.
An escrow account of $450,000 (unrelated to the previously
mentioned $450,000 reserved for the like-kind exchange) was
established at closing for the purpose of funding the payment of
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Last modified: May 25, 2011