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

A rocky Hill Country tract can sell for more than it earns from cattle, hay, or goats. Texas lets qualifying farm and ranch land be taxed on productivity value instead of market value.

That means the value is tied to what the land can produce. To qualify, land generally needs agricultural use for five of the past seven years. Wildlife management can qualify too, but it has its own plan rules.

If the use changes, a rollback tax can follow for the prior three years. Before subdividing or buying pasture, ask Gillespie Central Appraisal District about the tract history and Form 50-129.