Agricultural Appraisal
Ag Valuation Can Sharply Cut Taxes on Ranch Land
Ranch land used for sheep, goats, or cattle may qualify for a special lower tax value based on what the land produces, not what it would sell for.
Texas lets ranch land be taxed on what it produces, not what it would sell for. This is called agricultural special appraisal, or ag valuation. In Val Verde County, sheep and goat ranching is a major land use. Because land prices can be high, ag valuation can cut a tax bill by a large amount.
To qualify, land must have been used for agriculture for at least five of the past seven years. It also must meet the typical level of use for this area. If you later stop using the land for agriculture, a rollback tax applies. That means you pay back the difference for up to three prior years, plus interest. Apply through the Val Verde County Appraisal District. Check the Texas Comptroller's site for current rules.
Source to confirm: Texas Comptroller — Agricultural Special Appraisal