The value of a real estate agricultural exemption

What is typically called an ag exemption is really an assessment valuation based on the income the land can be expected to produce, rather than its market value, Larry Hammonds, chief appraiser for the Parker County Appraisal District, said.

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Pasture that has been improved will be assigned a greater value per acre than native pasture, he said, but the average productivity value assigned is around $100 per acre. Market values for the same land could be as high as $20,000 per acre.

“If you average all the market values from Peaster to Millsap to Aledo, you get an average of about $5,000 per acre,” he said. “The tax savings is just huge if you’ve got ag.”

For example, an individual with a one-acre tract with the average market value of $5,000 would pay about $115 in local taxes annually. The same tract valued according to productivity standards — at $100 per acre — requires an annual tax payment of only $2.30.

Exemptions apply only to vacant land, however, Hammonds said. Houses and barns are taxed according to their market value.

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How to qualify for agricultural exemption in HUNT County, TX.  Below is information specific to Hunt County.  To find out the minimal requirements for your County, you can either look online or give them a call.

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what do I need to qualify for an Ag exemption?