Agricultural Valuation Can Lower Taxes on Rural Land

Texas lets qualifying farm and ranch land be taxed on what it can produce, not on what it would sell for. This can cut the tax bill sharply on rural acreage. To qualify, land must be actively farmed or used for timber at a level normal for the area. It must also have been in farming or timber use for at least five of the past seven years.

You apply through the Montgomery Central Appraisal District (MCAD). Wildlife management also counts as a qualifying use, as long as the land was previously in farming or timber use. Check with MCAD for current acreage minimums and paperwork requirements. Rules can vary by use type.