BILL ANALYSIS



H.B. 1884
By: Oakley
April 21, 1995
Committee Report (Amended)


BACKGROUND

Section 23.55 (Change of Use of Land), Tax Code, imposes an
additional tax (rollback tax) on changing the use of land that is
designated for agricultural use.  If land is changed from
agricultural use to some other use, the tax imposed equals the
difference between the tax paid, and the tax that would have been
paid, with interest (7%), if the land had not qualified for special
appraisal for the five years preceding the year of change in use. 
The tax does not apply if the use is changed to timber land, or if
the owner claims that it is part of his residence homestead, or if
it is changed as a result of right-of-way or condemnation, but does
apply to a change of use to cemetery use.

PURPOSE

The bill proposes to exempt land meeting certain criteria that is
changed from agricultural use to cemetery use, from rollback taxes.

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 Section 23.55 (Change of Use of Land), Tax Code,
           by adding Subsections (j) and (k).

           (j) Provides that the additional tax imposed by Section
           23.55(a), Tax Code, does not apply to a change in the
           use if: (1) the land is located in an unincorporated
           area of a county with a population of less than 100,000;
           (2) the land does not exceed five acres; (3) the land
           is owned by a cemetery organization; (4) the cemetery
           organization dedicates the land for a cemetery purpose;
           (5) the cemetery organization has not dedicated more
           than five acres of land in the county for cemetery
           purposes in the five preceding years; and (6) the land
           is adjacent to a cemetery that has been in existence for
           more than 100 years.

           (k) Provides that "cemetery", "cemetery organization",
           and "cemetery purpose," have the meanings assigned those
           terms in Section 711.001, Health and Safety Code.

SECTION 2. The change in law by this Act apply only to a change of
           use after the effective date.

SECTION 3. Emergency Clause.

EXPLANATION OF AMENDMENTS

COMMITTEE AMENDMENT #1 would specify that the land which would be
changed to cemetery use is owned by a not for profit cemetery
organization.


SUMMARY OF COMMITTEE ACTION

Public notice was posted in accordance with the rules, and a public
hearing was held on April 18, 1995.  Representative Oakley
explained the bill.  The committee considered amendment #1 by
Representative Heflin.  Without objection, the committee adopted
committee amendment #1. By a record vote of 9 ayes, 0 nays, 0
present not voting and 2 absent, the committee voted to report H.B.
1884 to the House with amendment with the recommendation that it be
sent to the Local & Consent Calendar, and that it do pass.

     Testimony received in favor of the bill:
           Jed Howie, representing the College Mound Cemetery Assn.