Agriculture Valuation FAQ
- A property owner acquired four contiguous tracts over the years. The tracts are not divided by fences; in fact, they are used together as a single ranch operation. How should the property owner file the application(s) for special appraisal as 1-d-1 land?
- The chief appraiser in an appraisal district established a blanket policy that no parcel smaller than 10 acres in size may qualify for special agricultural appraisal. A property owner has an orchard that has 9.5 acres of pecan trees. May this tract qualify?
- After several years of losing money on failed crops, a property owner decides to place acreage in a federal farm subsidy program. Under the program, the farmer is only permitted to grow cover crops. He or she receives payments for participation in the program. The farmer’s land has qualified for 1-d-1 appraisal for several years. Does the land still qualify?
- A landowner has a large unfenced acreage tract where deer and other native wildlife roam and eat natural vegetation. The land is leased for deer hunting, and the property owner receives $5,000 per year from the leases and $10,000 per year from mineral interests and Social Security benefits. Does the tract qualify?
- A property owner has been digging up yaupon bushes that are growing wild on the land and sells the bushes to a retail nursery for use in residential landscaping. Does the land qualify?
- A property owner has a large tract populated by wild quail and pheasant. The property owner does not grow anything or graze cattle but leases the land for hunting purposes. Does the tract qualify?
- A property owner maintains a number of bee hives over six acres. The honey is sold as a commercial venture. Do the six acres qualify?
- A landowner grows poinsettias on his or her land. By early November of each year, the poinsettias are shipped to markets for sale during the Christmas season. The farmer grows lilies and ferns in a nursery and sells them to local florists all year long. Does this tract qualify?
- A landowner grows roses in a commercial operation. Some rose bushes are sold wholesale to dealers, and others are sold directly to the public. A blizzard killed all of the rose bushes and eroded some of the land. As a result, as of Jan. 1 there was no actual cultivation of the land, but the property owner replanted in the spring. Does the tract qualify?
- A property owner plants grapevines, intending to eventually sell grapes to a domestic winery. Over the course of six years he or she has planted hundreds of acres of vineyards. So far, the owner has not realized any income because the vines were too immature. Does the tract qualify?
- A 70-acre fenced tract is, by deed, a single tract. For the past five years, the property owner cultivated a vegetable garden on three acres and small grains on 17 acres. The remaining 50 acres is used for fishing, swimming and camping by family and friends. Does the tract qualify?
- Land is used for growing peaches in a commercial-scale operation. Is the land eligible for productivity appraisal, and how are the peaches or trees listed in the property records?
- A property owner uses land for the commercial breeding and raising of catfish. The operation includes a series of large fish tanks (man-made ponds) where the different sized fish are kept. Does any or all of this tract qualify for special appraisal?
- A farmer owns many acres of land upon which grow Christmas trees. The entire tract is devoted to raising the trees to be sold each year for profit. Does the tract qualify?
- A farmer grows many acres of Saint Augustine and other lawn grasses that are cut and sold as sod. Does the sod farm qualify for agricultural appraisal?
- A small tract is used to board horses used by their owners for pleasure riding and show competition. The land has a riding ring, and the remaining land is available for pleasure riding. The property owner does not graze the horses on the land. May the land qualify for a special use appraisal?
- A property owner has a large tract containing a large herd of axis deer. The deer are enclosed by a security fence more than six feet tall. At scheduled times throughout the year, young deer are harvested. The meat and hides are sold to commercial dealers for human use and consumption. The property owner permits recreational hunting when the herd size becomes unmanageable. Does the tract qualify for special use appraisal?
- Thoroughbred horses are bred and raised on a 500-acre tract of land. The horses graze on 450 acres; 40 acres are used to raise grain to feed the horses; and a stable where the horses and supplies related to them are kept occupies five acres. Another five acres are set aside for training the horses to race and includes a running track. The land is primarily used to breed and raise horses and is used to the degree of intensity typical for the area. May all or part of the land qualify for special use appraisal?
- A rancher grazes cattle over a large tract and devotes the majority of time and resources to raising cattle and growing feed for them. During part of the year, the property is leased for hunting wild game and game birds. Although the rancher principally devotes the land to cattle ranching, the income from the hunting leases is substantially greater than the income from cattle ranching. Does the tract qualify for agricultural appraisal?
Conroe, TX 77305
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Pursuant to Sec. 11.1825(r) of the Texas Property Tax Code, The Montgomery County Appraisal District gives public notice of the capitalization rate to be used for the 2021 Tax Year to value properties receiving exemptions under this section. Rent restricted properties vary widely. These variations can have an effect on the valuation of the property. A basic capitalization rate of 10.0% will be used to value these properties; although adjustments may be made on the individual property characteristics and the information provided to the chief appraiser as required under Sections 11.182(d) and (g) of the Property Tax Code.