Agricultural Valuation
Farmland in Hill County can be taxed on what it produces, not what it sells for
Texas lets qualifying farm and ranch land be appraised at its agricultural productivity value, which is usually much lower than market value.
If you use land for farming, ranching, or wildlife management, you may qualify for an ag valuation. This means taxes are based on what the land can produce, not what someone would pay for it. The difference can be significant for rural Hill County tracts.
Land generally must have been used for ag production for at least five of the last seven years. If you later sell or develop the land, a rollback tax applies for the previous three years. Apply at Hill CAD between January 1 and April 30. Check hillcad.org for current forms and guidelines.
Source to confirm: Texas Comptroller — Agricultural Special Appraisal