Ag Special Appraisal
Ranch and Farm Land in Hemphill County Can Be Taxed at Productivity Value
Land used for farming or ranching can be appraised on what it produces, not what it would sell for — often a much lower number.
Hemphill County is ranch country. If you own land that is actively used for cattle, crops, or other qualifying agricultural purposes, you may be able to get it appraised at its productivity value instead of market value. Productivity value is based on what the land can earn from farming or ranching. In rural Texas, this is usually much lower than what someone would pay to buy the land. That lower number means a lower tax bill.
To qualify, the land generally must have been in agricultural use for at least 5 of the past 7 years. You apply through the Hemphill County Appraisal District using state forms. Be aware of the rollback tax rule: if you change the land's use — say, you sell it to a developer — you can owe back taxes for up to three prior years at the higher market-value rate, plus interest. Check the Texas Comptroller's guide for current rules before you buy or sell ag-qualified land.
Source to confirm: Texas Comptroller — Agricultural and Timber Special Appraisal