Texas Timber Exemption

30 Apr 2025

Texas landowner and his timber | Plateau Wildlife

A Guide to Wildlife Management

Managing land in Texas comes with both great responsibility and significant opportunities. With about 37% of Texas lands covered in forests, owning timberland has considerable ecological and economic value. Fortunately, the Texas Timber Exemption offers landowners a powerful way to conserve their forests, support wildlife management efforts, and enjoy substantial tax benefits.

This guide will unpack the details of the Texas Timber Exemption, which is in reality a special valuation and not an exemption, including eligibility criteria, associated tax benefits, its eligibility for wildlife management, and practical steps to apply for it. Whether you’re a new landowner or simply looking to better understand this unique program, you’ll find everything you need to know right here.

What Is the Texas Timber Exemption?

The Texas Timber Exemption is a property tax benefit offered to eligible landowners who manage their timberland with the intent to produce income. This exemption is designed to protect open space land that provides timber and wildlife habitat by encouraging forestry practices to produce commercial timber.

Through this exemption, timberland is appraised at its qualified productivity value rather than its market value, significantly lowering property taxes. For landowners, this reduces financial pressure, enabling more effective long-term management of both timber and wildlife.

Understanding the exemption’s benefits and requirements is key to making the most of this opportunity, particularly as stewards of Texas’ rich ecological heritage.

Eligibility Criteria for the Exemption

Not every land parcel qualifies for the Texas Timber Exemption. Meeting the state’s specific criteria is necessary to claim this unique tax benefit. Here’s what you need to know to determine eligibility:

Purpose of Use: Your land must be primarily and actively used for timber production, including the growth or harvesting of trees for commercial purposes. This can also include related activities such as replanting and managing forest regeneration. The landowner must intend to produce income from the timber.
Land Size: While there are no universal size requirements, your land must be large enough to support reasonable timber operations. County appraisal districts must evaluate the intensity of use before granting eligibility.
History of Timber Operation: To qualify, your land should have a documented history of timber management. Typically, the state requires proof that your land has been dedicated to timber production for at least five of the last seven years.

By meeting these criteria, you position yourself to maximize the benefits of the Texas Timber Exemption.

Wildlife Management Use: Land currently under a timber valuation can also qualify to convert to wildlife management use by meeting the criteria for a wildlife valuation in their ecoregion.

Tax Benefits for Landowners

The most attractive aspect of the Texas Timber Exemption is its potential to reduce property taxes. Here’s what landowners can expect in financial terms by participating in the program:

Reduced Appraised Value: Instead of appraising timberland based on its market value (which can be high due to development potential), it is assessed based on its productivity value for timber growth. This dramatically reduces the taxable basis.

Long-Term Financial Stability: The reduced tax burden enables landowners to focus on timber production without the pressure to sell land to cover the property tax liability.

Much like agricultural valuations, the timber special valuation is intended to help protect open space land from conversion to development.

The Role of Wildlife Management

As long as timber production for income is your primary goal for your property, the timber tax valuation is a good fit. However, wildlife management use can be integrated with timber production as a secondary use. Here’s how it fits and how landowners benefit:

Habitat Preservation: Less intensive timber production with greater flexibility on how and when trees are harvested can help by creating and preserving habitats for local species. By managing timberland with wildlife in mind, landowners directly contribute to cleaner air, healthier soil, and water retention—all of which support local wildlife.

Greater Flexibility: Without the need to meet local timber intensity requirements, landowners are free to conduct activities that best fit their property goals.

Qualified Wildlife Management Activities: Landowners can include activities such as planting native grasses, installing bird boxes, and even actively managing their timber for wildlife. Not only do these efforts support biodiversity, but they may improve eligibility under enhanced wildlife use appraisals.

Conservation Efforts and Long-Term Impact

The Texas Timber Exemption plays a significant role in environmental conservation statewide. By incentivizing the protection of open space land, it encourages landowners to protect forests in ways that benefit present and future generations.

Key conservation outcomes include:

Preventing deforestation by maintaining timberland for forestry use, wildlife management use, or both.
Reducing urban sprawl and loss of green spaces.
Protecting biodiversity and supporting native species.

The program aligns ecological health with financial benefits, rewarding landowners who contribute to broader environmental goals.

How to Apply for the Texas Timber Exemption

Applying for the Texas Timber Exemption may seem daunting, but it’s relatively straightforward when broken into clear steps. Here’s how you can get started:

Check Eligibility: Review your land’s purpose, history, and size against the eligibility criteria to ensure it qualifies.
Obtain the Application: Request a timber-use valuation application from your local county appraisal district office or use Form 50-167 provided by the Comptroller.
Provide Supporting Evidence: Prepare a timber management plan for your property along with any other evidence of timber production (restocking efforts, timber harvest dates, timber sales contracts, etc.) and your intent to produce income to provide with your application .
Submit Application Before the Deadline: Applications must typically be filed by April 30. Missing this deadline could result in lost property tax benefits. Late applications may be filed with a penalty.
Work with a Forestry Expert: For optimal results, consider hiring a professional forester to prepare your timber plan and a property tax professional or legal expert in property taxes to guide you through the application process.

Make the Most of Your Timber

The Texas Timber Exemption is more than just a tax benefit—it’s a vital incentive for land management and protection. By taking the proper steps to qualify, you can reduce your tax burden while actively contributing to the preservation of Texas’s invaluable natural resources.

At Plateau Land & Wildlife Management, we’re here to help you navigate the process. With over 25 years of experience, we’ve been the trusted partner for landowners across Texas, offering unmatched expertise in wildlife law and rural land management. Since 1997, our team of certified wildlife biologists, registered property tax consultants, and professional field technicians has assisted thousands of landowners in protecting and enhancing their property. Whether you’re managing wildlife, timber, or other open-space requirements, Plateau can provide the guidance and services you need to succeed.

We’ve worked with more than 7,500 landowners across 159 counties, covering over 1.45 million acres of land to date. No other company in Texas offers the depth of knowledge or the variety of services that Plateau provides.

If you need further assistance or expert guidance on the Texas Timber Exemption, don’t hesitate to contact us or your local forestry professional or tax advisor. With Plateau on your side, your land—and its future—will thank you.