LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session May 1, 1995 TO: Honorable Tom Craddick, Chair IN RE: House Bill No. 1847 Committee on Ways & Means By: Black House of Representatives Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on House Bill No. 1847 (Relating to the qualification of land for appraisal as open-space land for ad valorem tax purposes.) this office has determined the following: The bill would amend Section 23.51, Tax Code, to define a "ratite" as "livestock". Ratites (ostrich and emu) are currently included within the definition of "exotic fowl". The bill would also change the spelling of "nilga" to nilgai". The Texas Constitution and Tax Code provide that certain kinds of farm and ranch land be appraised, not at market value, but at its productivity value --a value based solely on the land's capacity to produce agricultural products. To qualify land for agricultural appraisal, the owner must show that the land is devoted principally to an agricultural use. Agricultural use includes "raising or keeping exotic animals for the production of human food of fiber, leather, pelts, or other tangible products having a commercial value." The raising or keeping of ratites would qualify as an agriculture under either definition. No fiscal implication to the State or units of local government is anticipated. Source: Comptroller of Public Accounts LBB Staff: JK, BR, DF