But land that is classified by each appraisal district as “Ag” is only taxed on the value it derives from agricultural activity. Consequently, you’ll see large plots of land in the middle of the suburbs and the city that are bailed for hay or that contain a corn field. So then the owner is only subject to pay taxes on the amount the hay or corn produced.
This is meant to protect and encourage agricultural operations, incentivize the maintenance of rural land, and shield residents that are subject to being overtaken by sprawl. But it’s also used to protect land investment, including large ranches owned by hedge funds and foreign nationals.
If the land is sold and developed, some back taxes are owed when the land is no longer city considered Agricultural. But that gets passed on the purchaser and is rarely assessed against the seller.