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.