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