Farm and Ranch Land Can Be Taxed on Productivity, Not Market Value

Texas law lets qualifying agricultural land be taxed based on what it can produce — not what it would sell for on the open market. This is called an ag valuation (sometimes called a 1-d-1 open-space appraisal). In East Texas, timber production can also qualify. The difference can mean a much lower property tax bill each year.

To qualify, you must show the land has been in agricultural use for at least five of the past seven years. If you stop the qualifying use, you may owe back taxes called a rollback tax — the rollback tax is due for each of the previous three years in which the land received the lower appraisal. Apply through the Franklin County Appraisal District. The Texas Comptroller's office has the full rules and eligibility details.