Ag Valuation Can Sharply Cut Your Land Tax Bill

Texas allows land that is actively used for agriculture (crops, cattle, hay, even beekeeping) to be taxed on its earning power instead of what someone might pay to buy it. This is called an ag valuation (or 1-d-1 appraisal). In a county like Randall, where much of the land is wheat, cattle, and irrigated crops, this can make a huge difference in your tax bill.

You apply through the Potter-Randall Appraisal District (PRAD). The land must meet a history-of-use test, usually five of the past seven years. If you stop farming or sell to a developer, you may owe rollback taxes for the three prior years in which the land received the lower appraisal. Call PRAD at 806-358-1601 or see prad.org for current requirements.