BILL ANALYSIS H.B. 627 By: Willis April 28, 1995 Committee Report (Unamended) BACKGROUND Chapter 23, Tax Code, provides for property tax appraisal methods and procedures. Section 23.55 imposes a "rollback" tax on agricultural land appraised on its productivity value, when the owner changes the use of the land from an agricultural purpose. The rollback tax equals the difference between the taxes the owner actually paid and the taxes the owner would have paid on the property's market value for the previous five years plus interest. Section 11.22(h)(3), Tax Code, defines "disabled veteran" as a veteran of the armed services of the United States who is classified as disabled by the Veterans' Administration or its successor or the branch of the armed services in which the veteran served and whose disability is service-connected. In its report to the 74th Legislature, the Interim Committee on Veterans Affairs ascertained that the constitutional requirement of a five-year "rollback" has caused a disabled veteran much hardship in attempting to sell his farm land when the opportunity arises. PURPOSE This bill proposes to eliminate the additional "rollback" tax on certain land owned by a disabled veteran or unmarried surviving spouse when a change of land use occurs or the land is sold. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter D (Appraisal of Agricultural Land), Chapter 23, Tax Code, by adding Section 23.551 CERTAIN VETERANS LAND EXEMPTED FROM SANCTIONS. (a) Provides an exemption from the "rollback" tax imposed under Section 23.55(a) for land owned by a disabled veteran who purchased the land through the Veteran's Land Program and has owned it 20 years before a change of use occurs or before the sale of the land occurs. This exemption would also apply to an unmarried surviving spouse. (b) Provides that "disabled veteran" has the meaning assigned in Section 11.22(h), Tax Code. SECTION 2. Emergency clause SUMMARY OF COMMITTEE ACTION Public notice was posted in accordance with the rules, and a public hearing was held on April 25, 1995. By a record vote of 9 ayes, 0 nays, 0 present not voting, and 2 absent, the committee voted to report H.B. 627 to the House without amendment with the recommendation that it do pass. Testimony received in favor of the bill: Samuel Bier, representing himself and the DAV and DAVA (Auxiliary), Dept. of Texas Bill McLemore, representing himself and the Texas Assn. County Veterans Service Officers