Agricultural Appraisal Information
(see bottom of page for a list of applicable forms)
Until the 1960’s, Texas farm and ranch land was taxed on its market value—the price a buyer would pay for it in an ordinary market transaction. As Texas became more urbanized, however, farm and ranch land in many cases increased dramatically in value, especially in developing areas. Even if a farmer or rancher never intended to develop his land, its value increased because it could be developed.
Concerned that taxes could become so high that farmers and ranchers would be forced to abandon agriculture, voters in 1966 approved the first agricultural appraisal law. A constitutional amendment added Section 1-d to Article VIII of the constitution. This section provides that certain kinds of farm land be appraised not at their market value but at their productivity value—a value based solely on the land’s capacity to produce agricultural products. In many cases, this amendment substantially reduces taxation of land that qualifies.
Section 1-d is very restrictive. It applies only to land owned by families or individuals. Agriculture must be the owner’s primary occupation and primary source of income. In early years, procedures for administering the special appraisal varied widely. In 1978, voters again amended the constitution, adding a second, more liberal, agricultural appraisal law, Section 1-d-1, that substantially expanded eligibility for productivity appraisal. Corporations as well as individuals may qualify under 1-d-1. The income and occupation tests don’t apply, and the law also applies to timber land. The new constitutional amendment took effect in 1979. In enacting the Property Tax Code that same year, the legislature adopted Secs. 23.51-23.57, implementing Section 1-d-1.
The Property Tax Code assigns most agricultural appraisal responsibilities to the chief appraiser. However, Sections 23.41 and 23.52 of the Tax Code direct the Comptroller’s Property Tax Assistance Division (PTAD) to develop agricultural appraisal manuals for both 1-d and 1-d-1 land and distribute them to appraisal districts. Section 23.52 of the Tax Code also directs the Comptroller’s Property Tax Assistance Division (PTAD) to develop procedures for verifying that land qualifies for agricultural appraisal.
Information, in part, taken from the Property Tax Manual for the Appraisal of Agricultural Land, published by the Property Tax Assistance Division (PTAD) of the Texas Comptroller of Public Accounts.
Answers to the Questions You’re Asking
How do you file for agricultural appraisal?
Land Used for Agriculture
Application for 1-d-1 (Open-Space) Agricultural Use Appraisal
Agricultural Use Questionnaire for 1-d-1 Agricultural Land
Application for 1-d (Open-Space) Agricultural Use Appraisal
BCAD Agricultural Requirements
Notice of Change of Use (Waiver of Notice & Protest)
Wildlife Management Use
Application for Wildlife Management Use
(must also include 1-d-1 (Open-Space) Agricultural Use Appraisal Application)
Agriculture Property Tax Conversion for Wildlife Management
For more information regarding Wildlife Management Qualifications, Guidelines, or Forms, visit the official Texas Parks & Wildlife website.
