Property classification is the category your property falls into for tax purposesâresidential, commercial, agricultural, industrial, or other designations. Classification affects how your property is valued, what exemptions apply, and sometimes the tax rate.
Most homeowners are classified as residential (or "single-family residential"), but classification matters if your property has mixed uses or could qualify for special treatment like agricultural valuation.
Incorrect classification can lead to wrong valuation methods, missed exemptions, or inappropriate tax treatment. Check that your classification matches your property's actual use.
Your property classification determines the valuation approach the county uses. Wrong classification = wrong value.
Check for these issues:
⢠Home classified as commercial (higher value)
⢠Residential land valued as commercial potential
⢠Agricultural property losing ag exemption improperly
⢠Mixed-use property classified incorrectly
Special opportunities:
⢠Rural property may qualify for agricultural valuation
⢠Wildlife management can maintain ag status
⢠Timber land has special provisions
If your property qualifies for a special classification, the tax savings can be substantialâoften thousands per year. Review your notice to confirm correct classification.
Common property classifications:
Residential:
⢠Single-family homes
⢠Condos and townhomes
⢠Duplexes (2-4 units often)
⢠Valued using residential comparable sales
Commercial:
⢠Retail, office, industrial
⢠Multi-family apartments (5+ units)
⢠Often valued using income approach
Agricultural (Ag Exemption):
⢠Land used for farming/ranching
⢠Valued based on agricultural productivity, not market value
⢠Significantly lower values than residential/commercial
Vacant Land:
⢠Unimproved parcels
⢠Valued based on highest and best use
Check your Notice of Appraised Value or property record card. The classification or property type is listed, often as a code (like "A1" for residential). Your appraisal district can explain what each code means.
Classification changes require meeting specific criteria. For agricultural valuation, you must apply and demonstrate qualifying agricultural use. For other changes, contact your appraisal district. Improper classification can be corrected through the protest process.
Residential properties are typically valued using comparable sales (what similar homes sold for). Commercial properties often use income approach (based on rental income potential). Commercial valuation methods can produce higher values for the same property.