Agricultural Appraisal
Farm and ranch land can be taxed on productivity, not market value
Qualifying farm and ranch land in Callahan County is taxed on what it produces, not what it could sell for — this can mean a much lower tax bill.
Texas law allows a special appraisal called 1-d-1 open-space appraisal. Under this rule, land used for farming, ranching, or wildlife management is valued based on what it produces. It is not valued at what someone would pay to buy it. In Callahan County, where land prices have gone up, this difference can be large.
To qualify, the land must have been in ag use for at least five of the past seven years. You apply at the Callahan County Appraisal District using Form 50-129. CCAD is the local office that handles property values. If you stop using the land for ag purposes after you get this valuation, you may owe a rollback tax for the previous three years. Talk to CCAD before you change how the land is used. Check the Texas Comptroller's site for full details on eligibility.
Source to confirm: Texas Comptroller — Agricultural and Timber Special Appraisal