The Honorable John E. Fitzgibbon Opinion No. H-863

Webb County Attorney P. 0. Box 577 Re: Use of comparable Laredo, Texas 78040 sales in assessing value of land used for agricultural purposes.
Dear Mr. Fitzqibbon:
You explain that Webb County isundertaking aproject to reevaluate and reappraise all property in the county. You ask:
In assessing agriculture and ranching land,

should the tax assessor look at comparable sales of land inuse and tobe inuse for aqricalture, farming and ranching purposes along with other agriculture use factors, and if comparable sales are tobe considered, is such compatible with Section 1-D of Article VIII of the Texas Constitution? First, it iswell tonote that agricultural land is evaluated and assessed in the samemanner and on the same basis as other property unless the owner has timely invoked the provision of section l-d, article 8of theTexas Constitution, and has shown in aproper administrative or judicial proceeding that the agricultural use of the land is thebusiness which constitutes his primary occupation and hisprimary source of income. The elements of such proof are discussed in the very recent case of Gragg v. Cayuqa-Ind. Sch. Dist'.,. 19Tex. Sup. Ct. J. 347 (June 16,3976). .UGsthe special Constitutional provision is applicable, then thegeneral taxation section, article 8, section 1, controls. Itreads inpertinent part:

~3638The Honorable John E. Fitzgibbon - page 2 (H-863)

Taxation shall be equal and uhiform. All property in this State, whether owned by natural persons or corporations, other than municipal, shall be taxed inproportion to itsvalue, which shall be ascertained as provided by law. This provision has been interpreted as requiring that assessed valuations be arrived at on thebasis of reasonable cash market value. Whelan v. State, 282 S.W.2d 378 (Tex.Sup. 1955). - The special provision regarding agricultural land reads, inpart: All land owned by natural persons which is

designated for agricultural use in accordance with the provisions of this Section shall be assessed for all tax purposes on the consideration of only those factors relative to such agricultural use. Tex. Const. art. 8, j;l-d.
We do not believe this provision requires that assessed valuations of property designated as agricultural lands be arrived at on abasis different from "reasonable cashmarket value" except to the extent that it requires theassessor to assume that thehighest and best use of the land isan agricultural use. We ascertain nothing in the constitutional language that would prevent an assessor from considering sales of comparable land similarly used (andtobe used) tohelp in arriving at aproper valuation.
In Antonio

# !k%-=r 466 S.W.2d 1 (Tex.Civ. App. -- San

,writ ref'd n.r.e.) an attack wasmade on certain "agricultural use" valuations which were based on actual market value, using recent comparable sales (adjusted to recognize any non-agricultural use factors) as ameasure. In rejecting the attack, the San Antonio Court of Civil Appeals said: .L.

.. .

p.3639The Honorable John E. Fitzgibbon -page 3(H-863)

We do not think the adoption of theAgricultural Use Amendment completely changes accepted methods of valuation ofproperty. TheAgricultural Use Amendment does nomore than require that agricultural usevaluation be based on the assumption that the land can be used only for agricultural purposes. Stated differently, invaluing agricultural land for taxpurposes, itmust be assumed that agricultural use represents thehighest and best use towhich the land 

### canbeput. The possibility that the land can reasonably be put to ahigher use which would increase itsvalue must be ignored. Id. at 7.

- Accordingly, we answer 

### your questions in the affirmative.
SUMMARY Comparable sales of land used for agricultural purposes, if available and if truly reflective of agricultural use factors, should **be** utilized by the tax assessor, along with other agricultural use factors, invaluing landpursuant to the Agricultural Use Amendnent of the Texas Constitution. Very truly yours,

General of Texas

C. ROBERT B
jwb **p. 3640**