Farm and Ranch Land Can Be Taxed on Productivity, Not Market Value

Texas allows farm and ranch land to be valued for taxes based on its ability to grow crops or raise livestock — not its sale price. This is called a 1-d-1 open-space agricultural appraisal. Because land near Beaumont and Port Arthur has development pressure, the market value can be far higher than the productive value.

To qualify, the land must have been used primarily for agriculture for at least five of the past seven years and must meet intensity standards for the area. You apply through the Jefferson County Appraisal District. If land leaves agricultural use, a rollback tax may apply. Check the Texas Comptroller's site for the current cap rate and rules, then contact JCAD at jcad.org or 409-840-9944.