By:  Culberson                                        H.B. No. 2672
       72R2526 JD-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the ineligibility of certain land for appraisal as
    1-3  open-space land.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 23.56, Tax Code, is amended to read as
    1-6  follows:
    1-7        Sec. 23.56.  LAND INELIGIBLE FOR APPRAISAL AS OPEN-SPACE
    1-8  LAND.  Land is not eligible for appraisal as provided by this
    1-9  subchapter if:
   1-10              (1)  the land is located inside the corporate limits of
   1-11  an incorporated city or town, unless:
   1-12                    (A)  the city or town is not providing the land
   1-13  with governmental and proprietary services substantially equivalent
   1-14  in standard and scope to those services it provides in other parts
   1-15  of the city or town with similar topography, land utilization, and
   1-16  population density; or
   1-17                    (B)  the land has been devoted principally to
   1-18  agricultural use continuously for the preceding five years;
   1-19              (2)  the land is owned by an individual who is a
   1-20  nonresident alien or by a foreign government if that individual or
   1-21  government is required by federal law or by rule adopted pursuant
   1-22  to federal law to register his ownership or acquisition of that
   1-23  property; <or>
   1-24              (3)  the land is owned by a corporation, partnership,
    2-1  trust, or other legal entity if the entity is required by federal
    2-2  law or by rule adopted pursuant to federal law to register its
    2-3  ownership or acquisition of that land and a nonresident alien or a
    2-4  foreign government or any combination of nonresident aliens and
    2-5  foreign governments own a majority interest in the entity; or
    2-6              (4)  the land is not wholly owned by one or more
    2-7  individuals each of whom as a farmer or rancher gains, or attempts
    2-8  to gain, a livelihood from the operation of a farm or ranch on the
    2-9  land.  In this subdivision, an individual operates as a farmer or
   2-10  rancher if the individual is directly involved in, or gives
   2-11  continuing supervision to, the cultivation of the land or crops on
   2-12  the land or the raising of livestock on the land.
   2-13        SECTION 2.  (a)  This Act takes effect September 1, 1991, and
   2-14  applies to taxes imposed for tax years beginning on or after
   2-15  January 1, 1992.
   2-16        (b)  The change in law made by this Act does not affect the
   2-17  validity of an appraisal of land under Subchapter D, Chapter 23,
   2-18  Tax Code, as it existed before the effective date of this Act.
   2-19        (c)  If land appraised under Subchapter D, Chapter 23, Tax
   2-20  Code, as it existed before the effective date of this Act, becomes
   2-21  ineligible for appraisal as open-space land under the change in law
   2-22  made by this Act, the ineligibility is not a change of use of land
   2-23  under Section 23.55, Tax Code.
   2-24        SECTION 3.  The importance of this legislation and the
   2-25  crowded condition of the calendars in both houses create an
   2-26  emergency and an imperative public necessity that the
   2-27  constitutional rule requiring bills to be read on three several
    3-1  days in each house be suspended, and this rule is hereby suspended.