SRC-JEC S.B. 1272 77(R)BILL ANALYSIS


Senate Research CenterS.B. 1272
By: Bernsen
Intergovernmental Relations
4/11/2001
Committee Report (Amended)


DIGEST AND PURPOSE 

Currently, agriculture is defined as "the use of land to produce plant or
animal products, including fish or poultry products, under natural
conditions...."  Large nurseries located in rural Texas supply commercial
plant outlets throughout the United States, providing economic benefits in
counties where they are located.  These nurseries produce plant products in
greenhouses that can be up to 10 acres in size. Even though such
greenhouses are used to produce commercial plant products, the land on
which the greenhouses are located is currently ineligible for an
agricultural use determination.  S.B. 1272 allows land located in a county
with a population of 35,000 or less on which a greenhouse for growing
wholesale florist items is located to be designated as agricultural use 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 land:  that is
located in a county with a population of 35,000 or less; and on which a
greenhouse for growing florist items solely for wholesale purposes is
located. 

(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 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.


SUMMARY OF COMMITTEE CHANGES

Differs from the original by inserting the phrase "solely for wholesale
purposes" in section 23.425(a) and the phrase "and the person who owns the
land is not using in conjunction with or contiguous to land being used to
conduct retail sales of florist items" in Section 23.425(b).