Texas farmers and ranchers can be granted property tax relief on their land. They may
apply to the Shelby County Appraisal District for agricultural productivity appraisal and
for a lower appraisal of their land-based on how much they produce, versus what their
land would sell for on the open market.

The Texas Constitution authorizes two types of agricultural productivity appraisals, 1-d1 and 1-d, named after the section in which they were authorized. For 1-d-1 appraisal,
property owners must use the land for agriculture or timber and the land’s use must
meet the degree of intensity generally accepted in the area. Owners must also show
that the land was used for this purpose at least five of the preceding seven years. 1-d-1
the appraisal does not restrict ownership to individuals and does not require agriculture to
be the owner’s primary business. Most landowners apply for the 1-d-1 appraisal.
Under 1-d appraisal, the land must have been used for this purpose at least three years
and the owner must be an individual versus a corporation, partnership, agency or
organization. The land must also be the owner’s primary source of income.
Penalties in the form of a rollback tax, or the difference between the taxes paid under
productivity appraisal and the taxes that would have been paid if the land had been put
on the tax roll at market value, will be imposed if qualified land is taken out of agriculture
or timber production.

A rollback tax occurs when a landowner switches the land’s use to non-agricultural.
These rollback taxes under 1-d-1 are based on the five tax years preceding the year of
change. Under 1-d appraisal, the rollback extends back for three years.

Texas law allows farmers and ranchers to use the land for wildlife management and still
receive the special appraisal, but the land must be qualified for agriculture use in the
preceding year. Land under wildlife management must also meet acreage size
requirements and special use qualifications.

The deadline to apply for productivity appraisal is April 30. If the last day for the
performance of an act is a Saturday, Sunday or legal state or national holiday, the act is
timely if performed on the next regular business day. Owners of land qualified as 1-d
must file a new application every year. Owners of land qualified as 1-d-1 need not file
again in later years unless the chief appraiser requests a new application.

For more information about productivity appraisal and application forms, contact the
Shelby County Appraisal District at (936) 598-6171, online at www.shelbycad.com.
Information is also available on the state Comptroller’s Property Tax Assistance
Division’s website at comptroller.texas.gov/taxes/property-tax/.