Agricultural Eligibility Requirements

Agricultural appraisal applies only to the land itself, not to improvements or structures on the property.

Under the Texas Property Tax Code, land located within city limits is typically not eligible for agricultural appraisal unless the city or town does not provide government and proprietary services (such as water, sewer, fire protection, or police) that are substantially equal to those offered in other parts of the city or town with similar topography, land use, and population density.

Additionally, the land must comply with all legally permissible requirements, including but not limited to:

• Zoning
• Land use planning
• Governmental regulations
• Deed restrictions
• Other legal constraints

Qualification Requirements

To qualify for agricultural appraisal, the property owner must demonstrate to the chief appraiser that the land meets the following criteria:

• Current Agricultural Use: The land must be currently and actively devoted to agricultural use. This must be the primary use of the land.
• Primary Use: The existence of secondary uses does not automatically disqualify the land, provided that agricultural use remains the principal use. For example, if land is primarily used for grazing cattle but is also leased for hunting, it may still qualify. However, if a non-agricultural use becomes the primary use, the property would no longer meet the requirements for agricultural appraisal.
• Degree of Intensity: The land must be used for agricultural purposes at a level of intensity that is typical for the area. This provision aims to prevent landowners from engaging in minimal agricultural activity solely to obtain tax benefits. The law authorizes the chief appraiser to determine the local standard of intensity based on prevailing agricultural practices. This includes consideration of the time, labor, equipment, management, and capital invested compared to similar operations in the region.  
• Time Period Test:
  • Outside city limits: The land must have been primarily used for agricultural purposes for at least five of the preceding seven years.
  • If the city exemption criteria (regarding municipal services) are met, the land must have been continuously and principally devoted to agricultural use for the five immediately preceding years.