Ag Valuation
Farm Land Can Be Taxed on Productivity, Not Market Value
If your land is actively used for farming or ranching, it may qualify for a lower tax value based on what it produces, not what it would sell for.
Texas law lets farm land be taxed on what it produces, not what it would sell for. This is called ag valuation. To qualify, the land must have been used for farming or ranching for at least five of the past seven years. It must also meet the farming intensity standards for your area.
If you later stop farming and change how the land is used, you owe a rollback tax. That means you pay the difference between the taxes you paid and what you would have owed at market value for the past three years, plus interest. Apply using Form 50-129 at DCAD. Even small parcels in rural parts of Dallas County may qualify if they are actively farmed.
Source to confirm: Texas Comptroller – Agricultural, Timberland and Wildlife Management Use Special Appraisal