73R9713 JSA-D
By Patterson H.B. No. 1754
Substitute the following for H.B. No. 1754:
By ____________________ C.S.H.B. No. 1754
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to ad valorem taxation of agricultural land.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 23.51(1), Tax Code, is amended to read as
1-5 follows:
1-6 (1) "Qualified open-space land" means land that is
1-7 currently devoted principally to agricultural use to the degree of
1-8 intensity generally accepted in the area and that has been devoted
1-9 principally to agricultural use or to production of timber or
1-10 forest products to the degree of intensity generally accepted in
1-11 the area for five of the preceding seven years or land that is used
1-12 principally as an ecological laboratory by a public or private
1-13 college or university. Qualified open-space land includes all
1-14 appurtenances to the land. For the purposes of this subdivision,
1-15 appurtenances to the land means private roads, dams, reservoirs,
1-16 water wells, canals, ditches, terraces, and other reshapings of the
1-17 soil, fences, and riparian water rights.
1-18 SECTION 2. Section 23.55, Tax Code, is amended to read as
1-19 follows:
1-20 Sec. 23.55. Change of Use of Land. (a) If the use of land
1-21 that has been appraised as provided by this subchapter changes, an
1-22 additional tax is imposed on the land. The amount of the
1-23 additional tax is equal to:
2-1 (1) the difference between the taxes imposed on the
2-2 land for each of the five years preceding the year in which the
2-3 change of use occurs that the land was appraised as provided by
2-4 this subchapter and the taxes <tax> that would have been imposed
2-5 had the land been taxed on the basis of market value in each of
2-6 those years, if Subdivisions (2) through (7) do not apply;
2-7 (2) the difference, if any, between the taxes imposed
2-8 on the land for the year preceding the year in which the change of
2-9 use occurs and the taxes that would have been imposed had the land
2-10 been taxed on the basis of market value in that year, if:
2-11 (A) when the change of use occurs, the land is
2-12 owned solely by an individual or individuals, including individuals
2-13 owning undivided interests in the land;
2-14 (B) when the change of use occurs, the land or
2-15 each separate interest in the land has not been transferred for
2-16 consideration in the 15 years before the date the change of use
2-17 occurs; and
2-18 (C) the land was appraised as provided by
2-19 Subchapter C or this subchapter in each of the 10 years preceding
2-20 the date the change of use occurs;
2-21 (3) 1.2 times the difference between the taxes imposed
2-22 on the land for each of the five years preceding the year in which
2-23 the change of use occurs that the land was appraised as provided by
2-24 this subchapter and the taxes that would have been imposed had the
2-25 land been taxed on the basis of market value in each of those
3-1 years, if the person who owns the land when the change in use
3-2 occurs acquired the land for consideration and the change of use
3-3 occurs on or after the fourth anniversary of the date the person
3-4 acquired the land and before the fifth anniversary of that date;
3-5 (4) 1.4 times the difference between the taxes imposed
3-6 on the land for each of the five years preceding the year in which
3-7 the change of use occurs that the land was appraised as provided by
3-8 this subchapter and the taxes that would have been imposed had the
3-9 land been taxed on the basis of market value in each of those
3-10 years, if the person who owns the land when the change in use
3-11 occurs acquired the land for consideration and the change of use
3-12 occurs on or after the third anniversary of the date the person
3-13 acquired the land and before the fourth anniversary of that date;
3-14 (5) 1.6 times the difference between the taxes imposed
3-15 on the land for each of the five years preceding the year in which
3-16 the change of use occurs that the land was appraised as provided by
3-17 this subchapter and the taxes that would have been imposed had the
3-18 land been taxed on the basis of market value in each of those
3-19 years, if the person who owns the land when the change in use
3-20 occurs acquired the land for consideration and the change of use
3-21 occurs on or after the second anniversary of the date the person
3-22 acquired the land and before the third anniversary of that date;
3-23 (6) 1.8 times the difference between the taxes imposed
3-24 on the land for each of the five years preceding the year in which
3-25 the change of use occurs that the land was appraised as provided by
4-1 this subchapter and the taxes that would have been imposed had the
4-2 land been taxed on the basis of market value in each of those
4-3 years, if the person who owns the land when the change in use
4-4 occurs acquired the land for consideration and the change of use
4-5 occurs on or after the first anniversary of the date the person
4-6 acquired the land and before the second anniversary of that date;
4-7 and
4-8 (7) two times the difference between the taxes imposed
4-9 on the land for each of the five years preceding the year in which
4-10 the change of use occurs that the land was appraised as provided by
4-11 this subchapter and the taxes that would have been imposed had the
4-12 land been taxed on the basis of market value in each of those
4-13 years, if the person who owns the land when the change in use
4-14 occurs acquired the land for consideration and the change of use
4-15 occurs before the first anniversary of the date the person acquired
4-16 the land.
4-17 (b) Interest is due on an additional tax imposed under
4-18 Subsection (a). For each year for which the difference between the
4-19 taxes imposed and the taxes that would have been imposed had the
4-20 land been taxed on the basis of market value is used to calculate
4-21 the amount or a portion of the amount of the additional tax,
4-22 interest is imposed on the portion of the additional tax
4-23 attributable to that year under Subsection (a)<, plus interest> at
4-24 an annual rate of seven percent calculated from the delinquency
4-25 date for the taxes imposed in that year <dates on which the
5-1 differences would have become due>.
5-2 (c) <(b)> A tax lien attaches to the land on the date the
5-3 change of use occurs to secure payment of the additional tax and
5-4 interest imposed by this section and any penalties incurred. The
5-5 lien exists in favor of all taxing units for which the additional
5-6 tax is imposed.
5-7 (d) <(c)> The additional tax imposed by this section does
5-8 not apply to a year for which the tax has already been imposed.
5-9 (e) <(d)> If the change of use applies to only part of a
5-10 parcel that has been appraised as provided by this subchapter, the
5-11 additional tax applies only to that part of the parcel and equals
5-12 the difference between the taxes imposed on that part of the parcel
5-13 and the taxes that would have been imposed had that part been taxed
5-14 on the basis of market value.
5-15 (f) <(e)> A determination that a change in use of the land
5-16 has occurred is made by the chief appraiser. The chief appraiser
5-17 shall deliver a notice of the determination to the owner of the
5-18 land as soon as possible after making the determination and shall
5-19 include in the notice an explanation of the owner's right to
5-20 protest the determination. If the owner does not file a timely
5-21 protest or if the final determination of the protest is that the
5-22 additional taxes are due, the assessor for each taxing unit shall
5-23 prepare and deliver a bill for the additional taxes plus interest
5-24 as soon as practicable. The taxes and interest are due and become
5-25 delinquent and incur penalties and interest as provided by law for
6-1 ad valorem taxes imposed by the taxing unit if not paid before the
6-2 next February 1 that is at least 20 days after the date the bill is
6-3 delivered to the owner of the land.
6-4 (g) <(f)> The sanctions provided by Subsection (a) of this
6-5 section do not apply if the change of use occurs as a result of a
6-6 sale for right-of-way or a condemnation.
6-7 (h) <(g)> If the use of the land changes to a use that
6-8 qualifies under Subchapter E of this chapter, the sanctions
6-9 provided by Subsection (a) of this section do not apply.
6-10 (i) <(h)> Additional taxes, if any, for a year in which land
6-11 was designated for agricultural use as provided by Subchapter C of
6-12 this chapter (or Article VIII, Section 1-d, of the constitution)
6-13 are determined as provided by that subchapter, and the additional
6-14 taxes imposed by this section do not apply for that year.
6-15 (j) <(i)> The use of land does not change for purposes of
6-16 Subsection (a) of this section solely because the owner of the land
6-17 claims it as part of his residence homestead for purposes of
6-18 Section 11.13 of this code.
6-19 SECTION 3. This Act takes effect January 1, 1994, and
6-20 applies to the imposition of an additional property tax payable
6-21 under Subchapter D, Chapter 23, Tax Code, as a result of a change
6-22 of use of agricultural land that occurs on or after that date. An
6-23 additional tax imposed for a change of use of agricultural land
6-24 that occurs before the effective date of this Act is governed by
6-25 the law in effect immediately before the effective date of this
7-1 Act, and that law is continued in effect for the purpose of the
7-2 imposition, administration, and collection of that tax, including
7-3 penalties and interest.
7-4 SECTION 4. The importance of this legislation and the
7-5 crowded condition of the calendars in both houses create an
7-6 emergency and an imperative public necessity that the
7-7 constitutional rule requiring bills to be read on three several
7-8 days in each house be suspended, and this rule is hereby suspended.