In Texas most property is typically taxed based on its fair market value. Water Freedom System Review However, one exception to that rule is land that is in some type of agricultural production. Most people commonly refer to this as an agricultural "exemption". In actuality the property is not "exempt" from property tax and an agricultural valuation is the more appropriate terminology. Where agricultural production is the primary use of a property, the property is appraised on a productivity value as opposed to a fair market value. The resulting difference in valuation is a property appraisal averaging 75 to 90 percent lower than the fair market value.
According to the Texas Comptroller over 144 million acres of land in Texas is currently appraised as agricultural land. Prior to 1995, lands devoted primarily to wildlife management were excluded from this favorable property tax benefit. This resulted in forcing many landowners whose primary occupation and source of income was not agriculture to implement agricultural practices that were not always best for the natural resources in order to maintain their agricultural valuation. One common problem involved the overstocking of cattle on lands that could not support them. This was a result of minimum stocking rates required to maintain a viable livestock operation mandated by the appraisal districts in order to maintain a properties agricultural designation.
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