VZCAD 1-D-1 Intensity Standards Manual
Revised March 22, 2018
Page 3
Introduction
Special use productive valuation is a value that is based on the ability of the land to produce marketable
products. The purpose of this special use valuation is to promote productive use of land in Texas with the
intention of fostering viable income production from agriculture or timber enterprises, and/or fostering
prudent management activities for qualifying wildlife pursuits.
As you are probably aware, local governments such as cities, counties, and school districts raise a large
portion of their operating revenues through the levying of ad valorem property taxes, or taxes based upon
the value of property. Texas property tax laws give some special considerations to agriculture, timber,
and wildlife management land if the owner files a valid application and provided that the land meets
certain qualification requirements.
You may know this special consideration by the name of an Ag exemption, timber exemption, or wildlife
exemption. But instead of a true exemption, it is actually a special method of valuation.
Simply speaking, it is a special tax appraisal that generally results in a much lower taxable value, and
consequently a lower tax bill, than would result using standard market value appraisal methods. This
special tax appraisal is based upon the productive value of the land instead of the market value, or sales
value.
One of the legal requirements for qualification of land for special use productive valuation is its current
and primary use “to the degree of intensity that is typical to the area.” Degree of intensity is measured by
local farming and ranching practices (stocking rates, planting rates, crop rotation, fertilization methods,
brush and weed control, harvesting and marketing techniques, etc.) which are those of a typically prudent
farm or ranch manager. The land must be producing a product for human or animal consumption, or for
a commercial trade within the agriculture economy of the State of Texas and being farmed or ranched to
the extent typical for agricultural operations within the County. This test is intended to exclude land on
which token agricultural use occurs in an effort to obtain tax relief.
In determining the intensity use of agricultural properties, the property owner should be prepared to
provide the Appraisal District with evidence of production if it is requested. This evidence may be used
to determine the validity of the application and/or prior history of productive use and can include such
things as:
• Lease Agreements
• Bills of Sale
• Invoices for equipment or seed, feed, fertilizer, etc.
• Affidavits
Only land used in the production of a qualifying enterprise is included in the special use valuation. This
will cover land underneath structures that support the productive use of the property such as barns and
silos. These structures or other similar outbuildings are valued separately at their market value.
Appurtenances to the land (dams, fences, water wells or reservoirs, etc.) are not valued separately
however, and are considered a part of the productive valuation.