Property tax / Ag
Ag valuation can lower taxes on rural Bexar County land
Land used for genuine agricultural production in Bexar County can be taxed on its farming value instead of market value, which often results in a much lower property tax bill.
An 'ag exemption' is not a true exemption. It is a special way of valuing land. The land is taxed on what it can produce agriculturally, not on what a developer might pay. Near San Antonio, where land prices are high, this difference can be large.
To qualify in Bexar County, land outside city limits must have been used mainly for agriculture for at least five of the past seven years. The use must be real and active—not just token activity to cut the tax bill. Qualifying uses include growing crops, raising livestock, beekeeping, and wildlife management. The application deadline is April 30.
Watch out for rollback taxes. If you stop farming the land and switch it to another use, you owe back taxes. That means paying the difference between what you paid and what you would have paid at market value—for the prior three years, plus interest. This is set by Texas Tax Code §23.46, as changed by HB 1743 in 2019. Check current rules with BCAD before buying rural land. Visit bcad.org for Bexar County eligibility details.
Source to confirm: BCAD – Agricultural Eligibility Requirements