Agricultural and Wildlife Appraisal

Until the 1960s, Texas farm and ranch land was taxed based on its market value and not on its productivity value.

In 1966, Texas voters approved the first agricultural appraisal law which provided that certain kinds of farm land could be appraised at a value based upon the land’s ability to produce agricultural products, rather than its market value. This first law was for farmers and rancher making the majority of their income from farming. In 1978, Texas voters approved a second law which allowed open-space land to be appraised based on its productivity value. This new law allows productivity appraisal for corporations as well as individuals; there are no income tests, and is based more on the land remaining as open space and used for agricultural purposes. When the appraisal district is considering granting agricultural use appraisal, 1-2 acres for the homesite will be carved out as non-agricultural use.

While most people think of “ag” as an exemption, its really not an exemption but a appraisal methodology applied to open space land.

The following are links that should help anyone looking for information about agricultural appraisal.