BILL ANALYSIS


                                                        H.B. 1884
                                                By: Oakley (Cain)
                                                          Finance
                                                          5-25-95
                              Senate Committee Report (Unamended)
BACKGROUND

Section 23.55, 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 7 percent interest, 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, if the owner claims that it is part
of a 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

As proposed, H.B. 1884 exempts 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 grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 23.55, Tax Code, by adding Subsections
(j) and (k), as follows:

     (j)  Provides that the sanctions provided by Subsection (a) do
     not apply to a change in the use of land if the land is
     located in an unincorporated area of a county with a
     population of less than 10,000; the land does not exceed five
     acres, the land is owned by a not-for-profit cemetery
     organization, the cemetery organization dedicates the land for
     a cemetery purpose; the cemetery organization has not
     dedicated more than five acres of land in the county for a
     cemetery purpose in the five years preceding the date the
     cemetery organization dedicates the land for a cemetery
     purpose; and the land is adjacent to a cemetery that has been
     in existence for more than 100 years.
     
     (k)  Defines "cemetery," "cemetery organization," and
     "cemetery purpose."
     
     SECTION 2.     Makes application of this Act prospective.

SECTION 3. Emergency clause.
           Effective date: upon passage.