CS C.S.S.B. 1033 75(R)BILL ANALYSIS


WAYS & MEANS
C.S.S.B. 1033
By: Harris (Hawley)
5-8-97
Committee Report (Substituted)



BACKGROUND 

Property that receives an agricultural appraisal under Chapter 23,
Subchapter D, Tax Code (Appraisal of Agricultural Land), incurs a change
of use penalty or "rollback" tax if it no longer qualifies for an
agriculture exemption.  Current law specifically excepts right-of-way
transactions and condemnations from the rollback tax.  These exceptions
exist to insure that property owners are not penalized when their property
is taken over for public use.  These public use exceptions do not provide
protection to property owners who donate or dedicate their property for
public use, such as dedicating land for a city park. 

PURPOSE

The bill exempts property, that is donated to this state to be used for a
public purpose, from the change of use tax penalty. 

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 Section 23.55(f), Tax Code (Change of Use of Land), to
provide that a transfer of property to the state or a political
subdivision of the state for a public purpose will not trigger the
"rollback" tax. 

SECTION 2.  Effective Date:  January 1, 1998.

SECTION 3.Emergency Clause.



COMPARISON OF ORIGINAL TO SUBSTITUTE

There are no substantial differences between the substitute and the
original bill.