Agricultural Appraisal
Farm and Ranch Land Can Be Taxed on Productivity, Not Market Value
Landowners using property for farming, ranching, or wildlife management may qualify for much lower property taxes based on what the land produces.
Texas allows land used for agriculture to be taxed on its productivity value instead of its market value. In the Hill Country, where land prices are high but farming income is modest, this difference can be large. Qualifying uses include raising cattle, sheep, or goats, growing crops, and — under certain rules — managing land for wildlife. The land generally must have been in agricultural use for at least 5 of the last 7 years.
If you stop using the land for agriculture, you will owe rollback taxes. That is the difference between what you paid at ag rates and what you would have paid at full market value, going back three years, plus interest. This is important to know before you sell or develop rural property. Apply through the Gillespie Central Appraisal District using the Texas Comptroller's forms.
Source to confirm: Texas Comptroller — Agricultural, Timberland and Wildlife Management Use Special Appraisal