Agricultural Appraisal Can Lower Rural Land's Taxable Value

Texas calls this agricultural appraisal, not an "ag exemption." It values land for what it can produce from farm or ranch use, not what it could sell for.

Current use alone is not enough. Under the common 1-d-1 path, the land must be used mainly for a qualifying farm or ranch use. The level of use must meet the local standard. In most cases, the land also needs a qualifying use in five of the past seven years. Land inside a city may face more tests.

State law sets the main rules. The BCAD chief appraiser decides if the tract qualifies. Wildlife management may keep an existing ag appraisal if the owner follows state guidelines and gives BCAD a plan. TPWD supplies the guide and forms. It does not approve the tax value.

File Form 50-129 with BCAD before May 1. A late form may be allowed before the tax rolls are approved, often with a penalty. A switch to nonfarm use may bring rollback tax for the prior three years. State law has some exceptions. The tract's past use and the owner's next use can both affect the tax result.