Ag Valuation Follows the Land's Work, Not Its Nickname

People call this an 'ag exemption,' but no tax value disappears. It is a special way to value land. BCAD looks at what the land can produce from farm, ranch, or other qualifying ag use. A house, barn, or other building keeps its market value.

The common route is called 1-d-1. Land outside a city must be in real, active ag use. That use must match the normal work level for the area. The land must also pass a history test: ag use in five of the past seven years. Land inside a city may still qualify, but extra service and five-year use rules apply. Wildlife management is not a shortcut. The land normally must have qualified in the prior year, and the owner must follow a management plan. BCAD makes the call.

A rollback can follow when qualified land changes to a non-farm use. A slow season or lower use alone is not the same thing. The chief appraiser decides whether the use changed, and state law has exceptions. For 1-d-1 land, the bill looks back three tax years. It charges the gap between tax on the ag value and tax on market value. The rollback adds no interest by itself. An unpaid bill can still pick up the normal late charges. Apply by April 30.