Texas Porch

Ag Valuation

Qualifying farmland in Wilson County can be taxed on ag use, not market value

Texas law lets farmland and ranchland be taxed on what it produces, not what a developer might pay for it — and that can mean a much lower tax bill.

Wilson County has a long farming and ranching history. Peanuts, sorghum, cattle, and hogs have all been major products here.

Texas law lets qualifying land be taxed on its agricultural productivity value — what it can produce — instead of its full market value. This is often called an ag valuation or ag exemption. For a working farm or ranch, the tax bill can be much lower.

To qualify, land generally must have been in agricultural use for at least five of the past seven years. You apply through the Wilson County Appraisal District.

If you stop farming and the land gets developed, a rollback tax can kick in. It covers the difference in taxes for the previous three years. Talk with the Wilson County Appraisal District and check the Texas Comptroller's guidance before you buy land that you plan to take out of ag use.

Source to confirm: Texas Comptroller — Agricultural and Timber Appraisal

More Wilson County notes