By Saunders                                           H.B. No. 1387
       74R5666 JD-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to ad valorem taxation of agricultural, recreational,
    1-3  park, or scenic land; providing a penalty.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 23.51(1), Tax Code, is amended to read as
    1-6  follows:
    1-7              (1)  "Qualified open-space land" means land that is
    1-8  currently devoted principally to agricultural use to the degree of
    1-9  intensity generally accepted in the area and that has been devoted
   1-10  principally to agricultural use or to production of timber or
   1-11  forest products to the degree of intensity generally accepted in
   1-12  the area for five of the preceding seven years or land that is used
   1-13  principally as an ecological laboratory by a public or private
   1-14  college or university.  Qualified open-space land includes all
   1-15  appurtenances to the land.  For the purposes of this subdivision,
   1-16  appurtenances to the land means private roads, dams, reservoirs,
   1-17  water wells, canals, ditches, terraces, and other reshapings of the
   1-18  soil, fences, and riparian water rights.
   1-19        SECTION 2.  Section 23.54(e), Tax Code, is amended to read as
   1-20  follows:
   1-21        (e)  If a person fails to file a valid application on time,
   1-22  the land is ineligible for appraisal as provided by this subchapter
   1-23  for that year.  Once an application is filed and appraisal under
   1-24  this subchapter is allowed, the land is eligible for appraisal
    2-1  under this subchapter for five <in subsequent> years without a new
    2-2  application unless the ownership of the land changes or its
    2-3  eligibility under this subchapter ends.  Before February 1 of the
    2-4  year following the fifth year in which land is appraised under this
    2-5  subchapter pursuant to an application, the chief appraiser shall
    2-6  deliver to the owner of the land a notice that a new application
    2-7  for appraisal under this subchapter must be filed in order for the
    2-8  land to continue to be appraised under this subchapter.   If
    2-9  <However,> the chief appraiser <if he> has good cause to believe
   2-10  the land's eligibility under this subchapter has ended, the chief
   2-11  appraiser may require a person allowed appraisal under this
   2-12  subchapter in a prior year to file a new application to confirm
   2-13  that the land is currently eligible under this subchapter by
   2-14  delivering a written notice that a new application is required,
   2-15  accompanied by the application form, to the person who filed the
   2-16  application that was previously allowed.
   2-17        SECTION 3.  Subchapter D, Chapter 23, Tax Code, is amended by
   2-18  adding Section 23.545 to read as follows:
   2-19        Sec. 23.545.  INSPECTIONS.  The chief appraiser, a taxing
   2-20  unit for which the chief appraiser appraises the land, or an
   2-21  employee or agent of the chief appraiser or taxing unit may, on
   2-22  presentation of proper credentials, enter land appraised under this
   2-23  subchapter or for which an application for appraisal under this
   2-24  subchapter has been filed for the current year at any reasonable
   2-25  time to inspect and investigate the use of the land to determine
   2-26  whether or not it is eligible for appraisal under this subchapter.
   2-27        SECTION 4.  Subchapter D, Chapter 23, Tax Code, is amended by
    3-1  adding Section 23.551 to read as follows:
    3-2        Sec. 23.551.  ADDITIONAL PENALTY.  (a)  If a person acquires
    3-3  land for consideration and, while the person owns the land and
    3-4  before the end of the 10th year after the year of acquisition, the
    3-5  use of the land changes so that an additional tax is imposed on the
    3-6  land under Section 23.55, a penalty is imposed on the land for each
    3-7  year that the land was owned by the person and appraised as
    3-8  provided by this subchapter equal to twice the sum of the
    3-9  additional tax and interest imposed under Section 23.55, if any,
   3-10  for that year.
   3-11        (b)  A tax lien attaches to the land on the date the change
   3-12  of use occurs to secure payment of the penalty imposed by this
   3-13  section.  The lien exists in favor of all taxing units for which
   3-14  the penalty is imposed.
   3-15        (c)  The procedures specified in Section 23.55(e) for notice,
   3-16  protest, and payment of additional taxes and interest apply to the
   3-17  penalty provided by this section.
   3-18        SECTION 5.  Subchapter D, Chapter 23, Tax Code, is amended by
   3-19  adding Section 23.58 to read as follows:
   3-20        Sec. 23.58.  QUESTIONNAIRE.  (a)  The chief appraiser of an
   3-21  appraisal district established for a county with a population of
   3-22  500,000 or more may mail a questionnaire to each person owning land
   3-23  in the county appraised under this subchapter requesting
   3-24  information pertinent to the appraisal of land under this
   3-25  subchapter, including:
   3-26              (1)  the identity of the person;
   3-27              (2)  the legal description of the land;
    4-1              (3)  the date the person acquired the land;
    4-2              (4)  the person's purpose in acquiring and holding the
    4-3  land;
    4-4              (5)  the use to which the land was being put when the
    4-5  person acquired the land;
    4-6              (6)  the use to which the person is putting the land;
    4-7              (7)  the primary occupation of the person;
    4-8              (8)  the primary source of income of the person;
    4-9              (9)  the value of the land as appraised under this
   4-10  subchapter; or
   4-11              (10)  the market value of the land.
   4-12        (b)  A person to whom a questionnaire under this section is
   4-13  mailed must complete the questionnaire and mail it to the chief
   4-14  appraiser within 60 days of the date of its receipt.  If the person
   4-15  fails to timely complete and mail the questionnaire, the land owned
   4-16  by the person in the county is ineligible for appraisal as provided
   4-17  by this subchapter for that year.
   4-18        (c)  A questionnaire under this section and the information
   4-19  it contains are confidential and not open to public inspection.
   4-20  The questionnaire and the information it contains about specific
   4-21  property or a specific owner may not be disclosed to anyone other
   4-22  than an employee of the appraisal office who appraises property
   4-23  except as authorized by Subsection (d).
   4-24        (d)  Information made confidential by this section may be
   4-25  disclosed:
   4-26              (1)  in a judicial or administrative proceeding
   4-27  pursuant to a lawful subpoena;
    5-1              (2)  to the person who filed the questionnaire or to
    5-2  the person's representative authorized in writing to receive the
    5-3  information;
    5-4              (3)  to the comptroller and the comptroller's employees
    5-5  authorized by the comptroller in writing to receive the information
    5-6  or to an assessor or a chief appraiser if requested in writing;
    5-7              (4)  in a judicial or administrative proceeding
    5-8  relating to property taxation to which the person who filed the
    5-9  questionnaire is a party;
   5-10              (5)  for statistical purposes if in a form that does
   5-11  not identify specific property or a specific property owner; or
   5-12              (6)  if and to the extent the information is required
   5-13  to be included in a public document or record that the appraisal
   5-14  office is required to prepare or maintain.
   5-15        (e)  A person who has access to a questionnaire under this
   5-16  section or who obtains the confidential information the
   5-17  questionnaire contains commits an offense if the person knowingly:
   5-18              (1)  permits inspection of the questionnaire by a
   5-19  person not authorized to inspect it by Subsection (d); or
   5-20              (2)  discloses confidential information contained in
   5-21  the questionnaire to a person not authorized to receive the
   5-22  information by Subsection (d).
   5-23        (f)  An offense under Subsection (e) is a Class B
   5-24  misdemeanor.
   5-25        SECTION 6.  Section 23.81(1), Tax Code, is amended to read as
   5-26  follows:
   5-27              (1)  "Recreational, park, or scenic use" means use for
    6-1  <individual or group sporting activities, for> park or camping
    6-2  activities, for development of historical, archaeological, or
    6-3  scientific sites, or for the conservation and preservation of
    6-4  scenic areas.  The term does not include:
    6-5                    (A)  a golf course; bicycling, jogging, or
    6-6  walking trail; ballpark; or playing field; or
    6-7                    (B)  a greenbelt that is part of a platted
    6-8  residential subdivision.
    6-9        SECTION 7.  Section 23.82, Tax Code, is amended by adding
   6-10  Subsection (d) to read as follows:
   6-11        (d)  A voluntary restriction filed under Subsection (a) may
   6-12  be revoked by the owner of the land by filing a written instrument
   6-13  revoking the restriction with the county clerk of the county in
   6-14  which the land is located, if the land was appraised under this
   6-15  subchapter in a tax year but is determined to be ineligible for
   6-16  appraisal under this subchapter in a subsequent tax year because of
   6-17  a change in this subchapter made by the legislature.  This
   6-18  subsection does not apply to a restriction made for consideration,
   6-19  including a restriction contained in a covenant in a deed conveying
   6-20  an interest in land for consideration, or to a restriction that is
   6-21  made or revocable under Title 11, Property Code.
   6-22        SECTION 8.  Section 23.86, Tax Code, is amended by adding
   6-23  Subsection (e) to read as follows:
   6-24        (e)  The sanctions provided by Subsection (a) do not apply if
   6-25  a deed restriction is revoked under Section 23.82(d) or if land is
   6-26  diverted to another use after a change in this subchapter made by
   6-27  the legislature made the previously eligible land ineligible for
    7-1  appraisal under this subchapter.
    7-2        SECTION 9.  (a)  In order to stagger the renewal dates of
    7-3  applications for appraisal under Subchapter D, Chapter 23, Tax
    7-4  Code, to facilitate the workload of the chief appraiser, the chief
    7-5  appraiser may require the owner of land appraised under Subchapter
    7-6  D, Chapter 23, Tax Code, in 1995 to file a new application in any
    7-7  year before 2000.  For purposes of Section 23.54(e), Tax Code, as
    7-8  amended by this Act, land appraised under Subchapter D, Chapter 23,
    7-9  in 1995 is treated as if an application for that appraisal was
   7-10  filed in 1995.
   7-11        (b)  The penalty provided by Section 23.551, Tax Code, as
   7-12  added by this Act, applies to land the use of which changes on or
   7-13  after the effective date of this Act regardless of whether the
   7-14  person acquired the land before, on, or after the effective date of
   7-15  this Act.
   7-16        SECTION 10.  This Act takes effect January 1, 1996.
   7-17        SECTION 11.  The importance of this legislation and the
   7-18  crowded condition of the calendars in both houses create an
   7-19  emergency and an imperative public necessity that the
   7-20  constitutional rule requiring bills to be read on three several
   7-21  days in each house be suspended, and this rule is hereby suspended.