Under Texas law, which of the following is TRUE about agricultural use (ag) valuation for property tax purposes?
Correct Answer
B) Agricultural land is appraised at its productivity value (based on agricultural income capacity) rather than market value, resulting in lower taxes
Under Texas Tax Code §23.41-§23.57, qualifying agricultural land is appraised based on its productivity value (capacity to produce agricultural income) rather than its market value. This typically results in significantly lower appraised values and therefore lower taxes.
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