SRC-MAX H.B. 1723 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 1723
By: Telford (Ratliff)
State Affairs
5-12-97
Engrossed


DIGEST 
 
Currently, the appraised value for land that is dedicated to timber
production is significantly higher than that of land dedicated to
open-space agriculture.  Owners who convert land formerly used for
open-space agriculture to land used for timber production must pay a
considerably higher  amount in property taxes per acre than they paid
previous to the conversion.  However, there is no annual return from
timber for at least 12 to 15 years after planting.  This bill requires a
new standard for determining the taxable value of certain timberland.  

PURPOSE

As proposed, H.B. 1723 sets forth provisions regarding the appraisal for
property tax purposes of open-space land that is converted to the
production of timber.   

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 23D, Tax Code, by adding Section 23.59, as
follows: 

Sec.  23.59.  APPRAISAL OF OPEN-SPACE LAND THAT IS CONVERTED TO TIMBER
PRODUCTIONS.  Authorizes an owner to elect to have certain land continue
to be appraised under this subchapter for 15 years after the date the land
is converted to the production of timber, so long as the land qualifies
for appraisal as timber land under Subchapter E. Provides that in  the
event the land is deemed to be the same category of land under this
subchapter as it was immediately before conversion to timber production.
Requires the election to be made by a new application filed as provided by
Section 23.54 and remains in effect for 15 years or until a change in use
of the land occurs. Provides that this section applies to the appraisal of
land converted to timber production only until a certain date. Requires
the land to be appraised as timber land as provided by Subchapter E, so
long as it qualifies as timber land under Subchapter E in the 16th and
subsequent years.    

SECTION 2. Effective date: September 1, 1997.

SECTION 3. Emergency clause.