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.