BILL ANALYSIS

C.S.H.B. 2535

By: Sanford

Ways & Means

Committee Report (Substituted)

BACKGROUND AND PURPOSE

Concerns have been raised regarding inconsistencies in the appraisal of certain real property that includes improvements for noncommercial food production. Certain chief appraisers include the value of these improvements in the value of the real property. However, owners of such improvements argue the improvements are similar to trade fixtures, which are excluded from the value of real property. C.S.H.B. 2535 seeks to provide increased uniformity in appraisals by requiring that certain improvements used for the noncommercial production of food for personal consumption be excluded from the market value of real property.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

C.S.H.B. 2535 amends the Tax Code to require a chief appraiser, in determining the market value of real property, to analyze the effect on that value of, and exclude from that value, the value of any chicken coops or rabbit pens used for the noncommercial production of food for personal consumption.  

EFFECTIVE DATE

January 1, 2022.

COMPARISON OF ORIGINAL AND SUBSTITUTE

While C.S.H.B. 2535 may differ from the original in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

The substitute limits the category of improvements used for the noncommercial production of food for personal consumption the value of which must be excluded from the market value of real property from any improvement used for that purpose, as in the original, to only chicken coops and rabbit pens.