SWB C.S.H.B. 2669 75(R)BILL ANALYSIS


WAYS & MEANS
C.S.H.B. 2669
By: Patterson, L.P. "Pete"
5-5-97
Committee Report (Substituted)



BACKGROUND 

Under Subchapter B, Chapter 23, Tax Code (Special Appraisal Provisions),
no provisions for tax relief currently exist for land which the use has
been restricted by a governmental entity so that the land cannot be used
as the owner originally planned.  The proliferation of environmental laws,
rules and regulations over the past several decades may have created
unfair tax treatment for many landowners if their property is still valued
as if it had a more valuable use. 

PURPOSE

The bill provides ad valorem tax relief for property owners whose property
has been made relatively undevelopable by governmental actions but whose
property appraisal for ad valorem tax purposes has not changed to
accurately reflect the impact of the governmental action. The bill also
provides provisions for the sale of such land. 

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 B, Chapter 23, Tax Code (Special Appraisal
Provisions), by adding Section 23.21. LAND USE OF WHICH IS RESTRICTED BY
GOVERNMENTAL ENTITY, providing that land is appraised at a nominal value
under the following conditions: 

1)  the land use is restricted by a government and can include
restrictions to preserve wildlife; 
  2)  the restriction must be without the owner's consent, and
                        3)  the restriction effectively prohibits valuable
use. 

(b) Provides that if land appraised under Subsection (a) is sold, the
seller shall notify the chief appraiser of that fact.  Provides that if
the sale price exceeds the appraised value, additional taxes will be
imposed equal to the difference between the amount of taxes imposed for
the five years before the sale and the amount that would have been imposed
had the land been appraised at the sales price in each of those years,
plus interest at an annual rate of seven percent calculated from the dates
on which the differences would have become due. 

  (c) Provides that a tax lien attaches to the land on the date of the
sale. 

  (d) Provides that the additional tax imposed under Subsection (b) does
not apply to a year: 

(1) for which an additional tax under Subsection (b) has already been
imposed; or 
  (2) in which the land was not appraised under Subsection (a).

 (e) Provides that if the sale applies only to a part of land appraised
under Subsection (a), the additional tax applies only to that part and
equals the difference between the amount of taxes imposed on that part and
the amount that would have been imposed had that part been taxed on the
basis of the sale price. 

  (f) Provides that the assessor for each taxing unit shall prepare and
deliver a bill for the additional taxes plus interest as soon as
practicable.  Provides that the taxes and interest become delinquent if
not paid before the next February 1 that is at least 20 days after the
date the bill is delivered. 

(g) Establishes that the sanctions provided by Subsection (b) do not apply
if the land is sold for a  right-of-way or is condemned. 

SECTION 2.Effective date: January 1, 1998.

SECTION 3.Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 2669 provides provisions for the sale of land which were not
included in H.B. 2669.