SRC-MKV, JEC H.B. 2757 77(R)BILL ANALYSIS Senate Research CenterH.B. 2757 By: Ritter (Bernsen) Intergovernmental Relation 5/10/2001 Committee Report (Amended) DIGEST AND PURPOSE Current law entitles land used to produce plant or animal products under natural conditions to be designated for agricultural use for ad valorem tax appraisal purposes. Large nurseries located in rural communities in Texas have the potential to supply commercial plant outlets around the country and to help stimulate development in the community. However, the land on which these greenhouses are located is not eligible for an agricultural use determination. H.B. 2757 entitles a person who owns land in certain counties on which a greenhouse for growing florist items is located to an agricultural use determination for ad valorem tax appraisal purposes. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 23C, Tax Code, by adding Section 23.425, as follows: Sec. 23.425. ELIGIBILITY OF LAND USED FOR GROWING FLORIST ITEMS IN CERTAIN COUNTIES. (a) Provides that this section applies only to certain land. (b) Entitles a person who owns land described by Subsection (a) to have the land designated for agricultural use under this subchapter if the land otherwise qualifies for the designation under Section 23.42 and the person who owns the land that is not using it in conjunction with or contiguous to land being used to conduct retail sales of florist items. Provides that for purposes of Section 23.41, a greenhouse described by Subsection (a)(2) is an appurtenance to the land. (c) Defines "florist item" and "greenhouse." SECTION 2. Effective date: January 1, 2002. Makes application of this Act prospective.