By: Wilson H.B. No. 2474
73R6825 SMH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the ad valorem taxation of open-space, recreational,
1-3 park, and scenic land; providing a penalty.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter D, Chapter 23, Tax Code, is amended by
1-6 adding Section 23.521 to read as follows:
1-7 Sec. 23.521. AGRICULTURE AS PRIMARY SOURCE OF INCOME. A
1-8 person is not entitled to have land the person owns appraised under
1-9 this subchapter unless agriculture is the person's primary source
1-10 of income.
1-11 SECTION 2. Section 23.54, Tax Code, is amended by adding
1-12 Subsection (k) to read as follows:
1-13 (k) An application for appraisal of land under this
1-14 subchapter is a public record.
1-15 SECTION 3. Section 23.55(a), Tax Code, is amended to read as
1-16 follows:
1-17 (a) If the use of land that has been appraised as provided
1-18 by this subchapter changes, an additional tax is imposed on the
1-19 land:
1-20 (1) in an amount equal to the difference between the
1-21 taxes imposed on the land for each of the five years preceding the
1-22 year in which the change of use occurs that the land was appraised
1-23 as provided by this subchapter and the tax that would have been
1-24 imposed had the land been taxed on the basis of market value in
2-1 each of those years, plus interest at an annual rate of seven
2-2 percent calculated from the dates on which the differences would
2-3 have become due; and
2-4 (2) if the person who owns the land when the use
2-5 changes is not an individual, in an additional amount equal to the
2-6 amount calculated under Subdivision (1).
2-7 SECTION 4. Section 23.18, Tax Code, is amended by amending
2-8 Subsection (a) and adding Subsection (e) to read as follows:
2-9 (a) Because many residential subdivisions are developed on
2-10 the basis of a nonprofit corporation or association maintaining
2-11 nominal ownership to property, such as swimming pools, <parks,>
2-12 meeting halls, parking lots, tennis courts, or other similar
2-13 property, that is held for the use, benefit, and enjoyment of the
2-14 members of the organization, that nominally owned property is to be
2-15 appraised as provided by this section on the basis of a nominal
2-16 value to avoid double taxation of the property that would result
2-17 from taxation on the basis of market value of both the property of
2-18 the organization and the residential units or lots of the members
2-19 of the organization, whose property values are enhanced by the
2-20 right to use the organization's property.
2-21 (e) This section does not apply to:
2-22 (1) a golf course; greenbelt; bicycling, jogging, or
2-23 walking trail; open parkland; outdoor ball park; or playing field;
2-24 or
2-25 (2) open land not used primarily in connection with a
2-26 building, swimming pool, or other improvement designed for
2-27 activities that require the covering of the ground with a permanent
3-1 covering.
3-2 SECTION 5. Section 23.81(1), Tax Code, is amended to read as
3-3 follows:
3-4 (1) "Recreational, park, or scenic use" means use for
3-5 <individual or group sporting activities, for park or> camping
3-6 activities, for development of historical, archaeological, or
3-7 scientific sites, or for the conservation and preservation of
3-8 scenic areas. The term does not include:
3-9 (A) a golf course; bicycling, jogging, or
3-10 walking trail; ball park; or playing field; or
3-11 (B) a greenbelt that is part of a platted
3-12 residential subdivision.
3-13 SECTION 6. Section 23.82, Tax Code, is amended by adding
3-14 Subsection (d) to read as follows:
3-15 (d) A voluntary restriction filed under Subsection (a) may
3-16 be revoked by the owner of the land by filing a written instrument
3-17 revoking the restriction with the county clerk of the county in
3-18 which the land is located, if the land was appraised under this
3-19 subchapter in a tax year but is determined to be ineligible for
3-20 appraisal under this subchapter in a subsequent tax year because of
3-21 a change in this subchapter made by the legislature. This
3-22 subsection does not apply to a restriction made for consideration,
3-23 including a restriction contained in a covenant in a deed conveying
3-24 an interest in land for consideration, or to a restriction that is
3-25 made or revocable under Title 11, Property Code.
3-26 SECTION 7. Section 23.86, Tax Code, is amended by adding
3-27 Subsection (e) to read as follows:
4-1 (e) The sanctions provided by Subsection (a) do not apply if
4-2 a deed restriction is revoked under Section 23.82(d) or if land is
4-3 diverted to another use after a change in this subchapter made by
4-4 the legislature made the previously eligible land ineligible for
4-5 appraisal under this subchapter.
4-6 SECTION 8. This Act takes effect January 1, 1994.
4-7 SECTION 9. The importance of this legislation and the
4-8 crowded condition of the calendars in both houses create an
4-9 emergency and an imperative public necessity that the
4-10 constitutional rule requiring bills to be read on three several
4-11 days in each house be suspended, and this rule is hereby suspended.