Farm or Ranch Land Can Be Taxed on What It Produces, Not What It Sells For

Texas law lets farmland, ranchland, and timberland be taxed a different way. Instead of taxing on market value, what a buyer would pay, the state taxes on productivity value. That means what the land earns from farming. This is called a 1-d-1 open-space appraisal.

Red River County is a rural farming county. Hay, livestock, and row crops are common here. The gap between market value and productivity value can be large. That means big tax savings for qualifying landowners.

You apply with the Red River County Appraisal District. The land needs a history of agricultural use. If you stop farming, a rollback tax kicks in. It covers the difference for the previous three years.

Wildlife management is also a qualifying use. But the land must already have ag status to switch to wildlife management. Check the Texas Comptroller's agricultural appraisal page for current rules and forms.