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 is undertaking a project 

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 in use and to be in use for 

aqricalture, farming and ranching purposes 

along with other agriculture use factors, 

and if comparable sales are to be considered, 

is such compatible with Section 1-D of 

Article VIII of the Texas Constitution? 

First, it is well to note that agricultural land is 

evaluated and assessed in the same manner and on the same 

basis as other property unless the owner has timely invoked 

the provision of section l-d, article 8 of the Texas Constitution, and has shown in a proper administrative or judicial 

proceeding that the agricultural use of the land is the business 

which constitutes his primary occupation and his primary 

source of income. The elements of such proof are discussed 

in the very recent case of Gragg v. Cayuqa- Ind. Sch. Dist'.,. 

19 Tex. Sup. Ct. J. 347 (June 16,3976). .UGsthe special 

Constitutional provision is applicable, then the general 

taxation section, article 8, section 1, controls. It reads 

in pertinent part: 

~3638 
The 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 in proportion 

to its value, which shall be ascertained 

as provided by law. 

This provision has been interpreted as requiring that assessed 

valuations be arrived at on the basis of reasonable cash 

market value. Whelan v. State, 282 S.W.2d 378 (Tex. Sup. 1955). - 

The special provision regarding agricultural land reads, 

in part: 

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 a basis different from "reasonable cash market 

value" except to the extent that it requires the assessor to 

assume that the highest and best use of the land is an agricultural use. We ascertain nothing in the constitutional 

language that would prevent an assessor from considering sales 

of comparable land similarly used (and to be used) to help 

in arriving at a proper valuation. 

In 

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

, writ ref'd n.r.e.) an attack was made 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 a measure. 

In rejecting the attack, the San Antonio Court of Civil 

Appeals said: . L. .. . 

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

We do not think the adoption of the Agricultural 

Use Amendment completely changes accepted 

methods of valuation of property. The Agricultural Use Amendment does no more than 

require that agricultural use valuation be 

based on the assumption that the land can be 

used only for agricultural purposes. Stated 

differently, in valuing agricultural land for 

tax purposes, it must be assumed that agricultural use represents the highest and best 

use to which the land can be put. The possibility 

that the land can reasonably be put to a higher 

use which would increase its value 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, in valuing land pursuant to the 

Agricultural Use Amendnent of the Texas 

Constitution. 

Very truly yours, 

General of Texas 

C. ROBERT B 

jwb 

p. 3640