Agricultural Valuation
Farmland and Timberland Can Be Taxed at a Lower Value
Land used for farming, ranching, or timber production may qualify for a special appraisal based on what it produces, not what it would sell for.
Texas allows a special appraisal for land used for agriculture or timber. The land is valued on its ability to produce crops, livestock, or timber — not on its real estate market value. This is often called an ag valuation or 1-d-1 appraisal. It can cut your tax bill significantly on rural acreage.
To qualify, the land must have been in agricultural or timber use for at least five of the past seven years. If you change the land's use after getting the lower value, you owe a rollback tax for the three prior years. Apply through Polk Central Appraisal District. The Texas Comptroller has the official rules and forms.
Source to confirm: Texas Comptroller — Agricultural, Timberland and Wildlife Management Use Special Appraisal