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House Bill 561 |
House Author: Workman et al. |
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Effective: 6-14-13 |
Senate Sponsor: Seliger |
Under current law, a landowner who converts land previously appraised as agricultural land to another use is subject to an additional tax equal to the difference between the taxes imposed on the land on the basis of its agricultural use for each of the five years preceding the year in which the change of use occurs and the tax that would have been imposed had the land been taxed on the basis of market value in each of those years, plus interest at an annual rate of seven percent calculated from the dates on which the differences would have become due. House Bill 561 amends the Tax Code to provide an exemption from those sanctions for land owned by an organization that qualifies as a school if the organization converts the land within five years to a use for which the land is eligible for a property tax exemption as property used for school purposes.