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.