Ag Valuation Can Lower Your Property Tax in Terry County

Texas law lets farmland be taxed on what it can produce, not what it would sell for. This is called agricultural use appraisal, or ag valuation. In a county where cotton is the main crop, this rule matters a lot. The productive value is often much lower than market value, so the tax bill is smaller.

To qualify, the land must have been used for agriculture for at least five of the past seven years. You apply at the Terry County Appraisal District. Watch out for the rollback tax: if you stop farming and develop the land, you owe back taxes for up to three previous years, plus interest. Check the Comptroller's page for the application forms and current rules.