By:  Ratliff                                  S.B. No. 765

         97S0460/1                           

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to appraisal for property tax purposes of open-space land

 1-2     that is converted to production of timber.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Subchapter D, Chapter 23, Tax Code, is amended by

 1-5     adding Section 23.59 to read as follows:

 1-6           Sec. 23.59.  APPRAISAL OF OPEN-SPACE LAND THAT IS CONVERTED

 1-7     TO TIMBER PRODUCTION.  (a)  If land that has been appraised under

 1-8     this subchapter for at least five preceding years is converted to

 1-9     production of timber after September 1, 1997, the owner may elect

1-10     to have the land continue to be appraised under this subchapter for

1-11     15 years after the date of the conversion, so long as the land

1-12     qualifies for appraisal as timber land under Subchapter E. In that

1-13     event, the land is deemed to be the same category of land under

1-14     this subchapter as it was immediately before conversion to timber

1-15     production.

1-16           (b)  The election must be made by a new application filed as

1-17     provided by Section 23.54 and remains in effect for 15 years or

1-18     until a change in use of the land occurs.

1-19           (c)  This section applies to the appraisal of land converted

1-20     to timber production only until the end of the tax year in which

1-21     the 15th anniversary of the date of the conversion occurs.  In the

1-22     16th and subsequent years, the land shall be appraised as timber

1-23     land as provided by Subchapter E, so long as it qualifies as timber

 2-1     land under Subchapter E.

 2-2           SECTION 2.  This Act takes effect September 1, 1997.

 2-3           SECTION 3.  The importance of this legislation and the

 2-4     crowded condition of the calendars in both houses create an

 2-5     emergency and an imperative public necessity that the

 2-6     constitutional rule requiring bills to be read on three several

 2-7     days in each house be suspended, and this rule is hereby suspended.