Land Used for Farming Can Be Taxed at a Much Lower Rate

This is called a 1-d-1 open-space agricultural appraisal. Instead of paying taxes based on what the land could sell for, you pay based on what it can produce as farmland. To qualify in Collin County, the land must have been used for a qualifying agricultural purpose for at least five of the past seven years. Qualifying uses include crop production, livestock grazing, and hay production.

Apply with the Collin Central Appraisal District after January 1 and before May 1 of the tax year. A late application filed before the appraisal roll is certified carries a 10% penalty. If you stop using the land for agriculture, a rollback tax can be triggered. That rollback equals the difference between the market-value tax and the ag-value tax for the previous three years. Check the current rules at collincad.org before you apply.