Special Valuation 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.
Disclaimer: All information contained herein, is considered in the public domain and is distributed without warranty of any kind, implied, expressed or statutory. The Brazoria Appraisal District makes no claims, promises or guarantees about the accuracy, completeness, or adequacy of this information and expressly disclaims liability for any errors and omissions. Data should be considered a 'work in progress'. Additionally, the Brazoria County Appraisal District does not endorse nor assumes any responsibility for the content of any site linked from any page on our website.