Agriculture / Property tax
Ag valuation can sharply cut property taxes on rural land in Bandera County
In Bandera County, land used for farming or ranching can be taxed on what it produces instead of what it would sell for. This can mean a much lower tax bill.
Texas law lets landowners apply for an agricultural valuation — also called a 1-d-1 open space valuation. To qualify, you must truly use the land for farming, ranching, or wildlife management, among other qualifying uses. The land is then taxed on its production value, not its market value. In the Hill Country, land prices have risen a lot. That gap can mean big tax savings.
Bandera CAD — the local appraisal district — sets the exact rules for your area. As a general guide, you typically need at least 20 acres. A livestock operation usually requires at least 3 animal units. Soil type and how you use the land also affect the exact threshold. Wildlife management is an allowed qualifying use and requires a 5-year Wildlife Management Plan through Texas Parks and Wildlife. Ask Bandera CAD for their current Agricultural Intensity Standards document.
You must file your application between January 1 and April 30 of the year you want the valuation. If the land later changes use, a rollback tax may apply. The rollback generally covers the previous five years, per Bandera CAD. Bandera CAD can explain the requirements to you at no charge.
Source to confirm: Bandera CAD — Ag FAQ