Ag and timber valuation can lower a land tax bill

On a rural tract outside Nacogdoches, the tax value can sit far below the sales value. Texas special appraisal can value farm, ranch, timber, or wildlife land by what it can produce, not by what a buyer might pay.

Open-space ag land generally needs ag or timber use for five of the past seven years. Use Form 50-129 for open-space ag. Use Form 50-167 for qualified timberland.

Watch the rollback tax. If the land leaves ag use, the owner may owe three years of saved taxes. Ask the appraisal district how a change in use would affect the bill during due diligence.