Farm and ranch land in Kerr County can be taxed on productivity, not market value

Texas allows qualifying land to be taxed based on what it can produce, not what someone would pay to buy it. This is called a 1-d-1 agricultural appraisal. In the Hill Country, this can mean a much lower tax bill for ranches and farms. To qualify, you must have used the land for agriculture for at least five of the past seven years at an intensity common in the area.

If you later sell or develop the land for non-farm use, you owe a rollback tax — the difference between what you paid and what you would have owed at market value, for three prior years, plus interest. Apply through the Kerr Central Appraisal District. The Texas Comptroller's office publishes a manual explaining exactly how the program works.