Agricultural Valuation
Ranch Land Can Be Taxed on What It Produces, Not What It's Worth
Qualifying ranch and farm land in Webb County can be appraised at its agricultural productivity value, which is usually much lower than market value.
Webb County is one of the most ranching-intensive counties in Texas. About 2 million of its roughly 2.15 million acres are farmland or pasture, mostly used for cattle, goats, and horses. Land used this way may qualify for a special appraisal under Texas law.
Instead of being taxed on what a developer would pay for the land, the owner pays taxes based on what the land can produce — hay, livestock, or wildlife. This is sometimes called a 1-d-1 open-space appraisal or 'ag exemption.' You apply through the Webb County Appraisal District. If you stop using the land for agriculture, rollback taxes may apply for the previous three years.
Source to confirm: Texas Comptroller – Agricultural and Timberland Special Appraisal