Agricultural Valuation
Farm and Ranch Land Can Be Taxed at a Lower Rate
Texas lets landowners pay property taxes based on what farmland produces, not what it would sell for — and that usually means a much lower tax bill.
Texas law lets farm and ranch land be taxed based on what it produces, not what it would sell for. This is called agricultural special appraisal, or 1-d-1 open-space appraisal. In Lipscomb County, most land grows wheat or raises cattle or hogs. Taxing that land at its sale price could mean a much higher tax bill.
To qualify, you generally must have used the land for agriculture for at least five of the past seven years. The land also must meet the intensity standard for this area. That means you must be farming or ranching at a level normal for the region — not just owning the land. You apply through the Lipscomb County Appraisal District. The form is Texas Comptroller Form 50-129. Ask the appraisal district about local deadlines and requirements before you apply.
Source to confirm: Texas Comptroller — Agricultural Special Appraisal