By: Luna S.B. No. 677
73R6214 JSA-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the ad valorem tax appraisal of property owned or used
1-3 for certain park or recreational purposes.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 23.18, Tax Code, is amended by amending
1-6 Subsection (a) and adding Subsection (e) to read as follows:
1-7 (a) Because many residential subdivisions are developed on
1-8 the basis of a nonprofit corporation or association maintaining
1-9 nominal ownership to property, such as swimming pools, <parks,>
1-10 meeting halls, parking lots, tennis courts, or other similar
1-11 property, that is held for the use, benefit, and enjoyment of the
1-12 members of the organization, that nominally owned property is to be
1-13 appraised as provided by this section on the basis of a nominal
1-14 value to avoid double taxation of the property that would result
1-15 from taxation on the basis of market value of both the property of
1-16 the organization and the residential units or lots of the members
1-17 of the organization, whose property values are enhanced by the
1-18 right to use the organization's property.
1-19 (e) This section does not apply to:
1-20 (1) a golf course; greenbelt; bicycling, jogging, or
1-21 walking trail; open parkland; outdoor ball park; or playing field;
1-22 or
1-23 (2) open land not used primarily in connection with a
1-24 building, swimming pool, or other improvement designed for
2-1 activities that require the covering of the ground with a permanent
2-2 covering.
2-3 SECTION 2. Section 23.81(1), Tax Code, is amended to read as
2-4 follows:
2-5 (1) "Recreational, park, or scenic use" means use for
2-6 <individual or group sporting activities, for park or> camping
2-7 activities, for development of historical, archaeological, or
2-8 scientific sites, or for the conservation and preservation of
2-9 scenic areas. The term does not include:
2-10 (A) a golf course; bicycling, jogging, or
2-11 walking trail; ball park; or playing field; or
2-12 (B) a greenbelt that is part of a platted
2-13 residential subdivision.
2-14 SECTION 3. Section 23.82, Tax Code, is amended by adding
2-15 Subsection (d) to read as follows:
2-16 (d) A voluntary restriction filed under Subsection (a) may
2-17 be revoked by the owner of the land by filing a written instrument
2-18 revoking the restriction with the county clerk of the county in
2-19 which the land is located, if the land was appraised under this
2-20 subchapter in a tax year but is determined to be ineligible for
2-21 appraisal under this subchapter in a subsequent tax year because of
2-22 a change in this subchapter made by the legislature. This
2-23 subsection does not apply to a restriction made for consideration,
2-24 including a restriction contained in a covenant in a deed conveying
2-25 an interest in land for consideration, or to a restriction that is
2-26 made or revocable under Title 11, Property Code.
2-27 SECTION 4. Section 23.86, Tax Code, is amended by adding
3-1 Subsection (e) to read as follows:
3-2 (e) The sanctions provided by Subsection (a) do not apply if
3-3 a deed restriction is revoked under Section 23.82(d) or if land is
3-4 diverted to another use after a change in this subchapter made by
3-5 the legislature made the previously eligible land ineligible for
3-6 appraisal under this subchapter.
3-7 SECTION 5. This Act takes effect January 1, 1994.
3-8 SECTION 6. The importance of this legislation and the
3-9 crowded condition of the calendars in both houses create an
3-10 emergency and an imperative public necessity that the
3-11 constitutional rule requiring bills to be read on three several
3-12 days in each house be suspended, and this rule is hereby suspended.