75R12456 SMH-D By Patterson, Turner of Coleman, King, H.B. No. 2669 Rabuck, Chisum, et al. Substitute the following for H.B. No. 2669: By Heflin C.S.H.B. No. 2669 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the appraisal for ad valorem tax purposes of land that 1-3 does not have any valuable use because of a restriction imposed by 1-4 a governmental entity. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Subchapter B, Chapter 23, Tax Code, is amended by 1-7 adding Section 23.21 to read as follows: 1-8 Sec. 23.21. LAND USE OF WHICH IS RESTRICTED BY GOVERNMENTAL 1-9 ENTITY. (a) Land is appraised at a nominal value if: 1-10 (1) the use of the land is subject to a restriction 1-11 imposed by a governmental entity, including a restriction to 1-12 preserve wildlife habitat; 1-13 (2) the owner of the land has not consented to the 1-14 restriction; and 1-15 (3) the effect of the restriction is to prohibit all 1-16 valuable uses of the land. 1-17 (b) If land appraised under Subsection (a) is sold, the 1-18 seller shall notify the chief appraiser of the sale and the sale 1-19 price not later than the 30th day after the effective date of the 1-20 sale. The chief appraiser may require the seller to provide 1-21 evidence of the sale price. If the sale price exceeds the 1-22 appraised value, an additional tax is imposed on the land equal to 1-23 the difference between the amount of taxes imposed on the land for 1-24 each of the five years preceding the year in which the land is sold 2-1 and the amount of taxes that would have been imposed had the land 2-2 been appraised at the sale price in each of those years, plus 2-3 interest at an annual rate of seven percent calculated from the 2-4 dates on which the differences would have become due. 2-5 (c) A tax lien attaches to the land on the date of the sale 2-6 to secure payment of the additional tax and interest imposed by 2-7 Subsection (b) and any penalties incurred. The lien exists in 2-8 favor of all taxing units for which the additional tax is imposed. 2-9 (d) The additional tax imposed by Subsection (b) does not 2-10 apply to a year: 2-11 (1) for which an additional tax under Subsection (b) 2-12 has already been imposed; or 2-13 (2) in which the land was not appraised under 2-14 Subsection (a). 2-15 (e) If the sale applies to only part of a parcel that has 2-16 been appraised under Subsection (a), the additional tax applies 2-17 only to that part of the parcel and equals the difference between 2-18 the amount of taxes imposed on that part of the parcel and the 2-19 amount of taxes that would have been imposed had that part been 2-20 taxed on the basis of the sale price. 2-21 (f) The assessor for each taxing unit shall prepare and 2-22 deliver a bill for the additional taxes plus interest as soon as 2-23 practicable. The taxes and interest are due and become delinquent 2-24 and incur penalties and interest as provided by law for ad valorem 2-25 taxes imposed by the taxing unit if not paid before the next 2-26 February 1 that is at least 20 days after the date the bill is 2-27 delivered to the owner of the land. 3-1 (g) The sanctions provided by Subsection (b) do not apply if 3-2 the land is sold for a right-of-way or is condemned. 3-3 SECTION 2. This Act takes effect January 1, 1998. 3-4 SECTION 3. The importance of this legislation and the 3-5 crowded condition of the calendars in both houses create an 3-6 emergency and an imperative public necessity that the 3-7 constitutional rule requiring bills to be read on three several 3-8 days in each house be suspended, and this rule is hereby suspended.