Ag Valuation Can Lower Your Tax Bill on Ranch Land

People often call this an ag exemption, but Texas treats it as special appraisal. Qualifying farm and ranch land can be appraised on productivity value instead of market value. Agricultural use can include raising or keeping livestock.

For a Terrell County tract, start with the local paperwork. Terrell CAD has Agricultural Appraisal 1-D and 1-D-1 forms. The appraisal district office is at 302 N. Second Street in Sanderson, and the listed phone number is 432-345-2251.

Before you buy, ask what kind of ag appraisal is in place and what records support it. Open-space agricultural land must be in ag use now, meet the local degree of intensity, and have ag or timber use for at least five of the past seven years.

The cheap tax bill can change if the use changes. A switch to non-agricultural use can trigger rollback tax for each of the previous three years when the land had the lower appraisal.