Property Valuation
Under Texas Property Tax Code, agricultural land that qualifies for 'ag use' valuation is taxed based on:
AIts market value as development land
BIts productivity value based on actual agricultural income capability✓ Correct
CA flat per-acre rate set by the state
DThe county appraisal district's arbitrary determination
Explanation
Texas provides a 1-d-1 agricultural use appraisal that taxes qualifying agricultural land based on its productive value for agricultural purposes (what a typical operator can produce) rather than market value, significantly reducing taxes on working farms and ranches.
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