By Nixon S.B. No. 532
75R4634 JD-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the appraisal of timberland for ad valorem tax
1-3 purposes.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 23.72, Tax Code, is amended to read as
1-6 follows:
1-7 Sec. 23.72. Qualification for Productivity Appraisal. Land
1-8 qualifies for appraisal as provided by this subchapter if it is
1-9 currently and actively devoted principally to production of timber
1-10 or forest products to the degree of intensity generally accepted in
1-11 the area with intent to produce income [and has been devoted
1-12 principally to production of timber or forest products or to
1-13 agricultural use that would qualify the land for appraisal under
1-14 Subchapter C or D of this chapter for five of the preceding seven
1-15 years].
1-16 SECTION 2. Sections 23.73(a) and (c), Tax Code, are amended
1-17 to read as follows:
1-18 (a) The appraised value of qualified timber land is
1-19 determined on the basis of the category of the land, using accepted
1-20 income capitalization methods applied to average net to land.
1-21 Until the end of the 12th year following the first year in which
1-22 the timber land qualifies for appraisal under this subchapter after
1-23 one or more years in which the land did not qualify for appraisal
1-24 under this subchapter, the [The] appraised value so determined may
2-1 not exceed the lesser of:
2-2 (1) the market value of the land as determined by
2-3 other appraisal methods; or
2-4 (2) the appraised value of the land according to
2-5 Subchapter D as if the land qualified for appraisal under that
2-6 subchapter.
2-7 (c) For the purposes of Subsection (a) and Section 23.76 of
2-8 this code, the chief appraiser also shall determine the market
2-9 value of qualified timber land and the appraised value of the
2-10 timber land according to Subchapter D as if the land qualified for
2-11 appraisal under that subchapter. The chief appraiser shall record
2-12 [both the market value and the appraised value] in the appraisal
2-13 records:
2-14 (1) the market value of the land;
2-15 (2) the appraised value of the land according to this
2-16 subchapter; and
2-17 (3) the appraised value of the land according to
2-18 Subchapter D as if the land qualified for appraisal under that
2-19 subchapter.
2-20 SECTION 3. This Act takes effect January 1, 1998.
2-21 SECTION 4. The importance of this legislation and the
2-22 crowded condition of the calendars in both houses create an
2-23 emergency and an imperative public necessity that the
2-24 constitutional rule requiring bills to be read on three several
2-25 days in each house be suspended, and this rule is hereby suspended.