Agricultural Valuation
Ag valuation can cut your property tax bill on rural land
Farm and ranch land in Starr County can be taxed on what it produces, not what it would sell for — and that can mean a much lower tax bill.
Texas lets qualifying farm and ranch land be valued at its productivity value instead of its market value. Market value is what the land would sell for. Productivity value is based on what the land earns. In Starr County, with its long ranching and irrigated farming history, the gap between these two values can be big. Working landowners often pay far less in property tax because of this rule.
To qualify, the land must have been used for agriculture for at least five of the past seven years. It also must meet local intensity standards — meaning it has to be used seriously, not just hobby farming. You apply with the Starr County Appraisal District.
Watch out for the rollback tax. If you stop using the land for agriculture, you owe the difference between what you paid and what full market-value taxes would have been for the prior three years. Check the Texas Comptroller's page for the full rules.
Source to confirm: Texas Comptroller — Agricultural and Timber Special Appraisal