SWB H.B. 1723 75(R)BILL ANALYSIS


WAYS & MEANS
H.B. 1723
By: Telford
4-18-97
Committee Report (Unamended)



BACKGROUND 

When land is converted from crop production to timber production it is
classified as timberland and appraised at a higher value, despite the fact
that it takes 15 years to grow a harvestable crop of trees.  Currently,
there is no tax incentive to convert agriculture land to timberland. 

PURPOSE

The bill would allow landowners who convert their crop and  pasture lands
to timber to continue to retain their agricultural classification and
appraisal for at least 15 years. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency or
institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.Amends Subchapter D, Chapter 23, Tax Code (Appraisal of
Agricultural Land), by adding Section 23.59.  APPRAISAL OF OPEN-SPACE LAND
THAT IS CONVERTED TO TIMBER PRODUCTION. 

(a) Provides that a landowner whose land has been appraised under this
subchapter for at least five preceding years who converts to timber
production after September 1, 1997, may elect to have the land continue to
be appraised under this subchapter for 15 years after the date of the
conversion, so long as the land qualifies for appraisal as timber land
under Subchapter E.  Provides that in that event, the land is deemed to be
the same category of land under this subchapter as it was immediately
before conversion to timber production. 

(b) Provides that the election to convert to timber production must be
made by a new application filed as provided by Section 23.54, Tax Code
(Application), and remains in effect for 15 years or until a change in use
of the land occurs. 

  (c) Provides that this section applies to appraisal of land converted to
timber production only until the end of the tax year in which the 15th
anniversary of the date of the conversion occurs.  Provides that in the
16th and subsequent years, the land shall be appraised as timber land as
provided by Subchapter E, so long as it qualifies as timber land under
Subchapter E. 

SECTION 2.Effective date: Sept. 1, 1997.

SECTION 3.Emergency Clause.