Ranch land can be taxed on productivity, not market value

Cattle are still what the Davis Mountains grow best, and Texas property tax rules make room for that. Farm, ranch, timber, and wildlife land can be appraised on productive value instead of market value. On a large spread, that can be the difference between a tax bill that fits the land and one that treats it like subdivision ground.

The state test is not casual. Open-space ag land generally has to be in qualifying agricultural use for at least five of the past seven years. The usual application is Comptroller Form 50-129, filed through the appraisal district.

If the land leaves ag use, a rollback tax can follow. The Comptroller describes it as the difference between the taxes paid under ag value and what the last three years would have cost at market value. Before buying, ask exactly what use kept the land qualified.