The Texas Constitution and Tax Code provide that certain kinds of farm and ranch land be appraised based on the land’s capacity to produce agricultural products (productivity value) instead of at market value. In many cases, this appraisal technique substantially reduces taxation of land that qualifies for agricultural appraisal.
Land owners can apply for special appraisal based on the property’s productivity value. Productivity value is based on the land’s ability to produce agricultural or timber products and is usually lower than market value. Land that is used to manage wildlife may also qualify for special use appraisal.
Open-Space/Ag-Use Appraisal Laws and Eligibility Requirements