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