H.J.R. 72 78(R)    BILL ANALYSIS


H.J.R. 72
By: Kuempel
Local Government Ways and Means
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Under current law, Texas requires a buyer of agricultural land, which has
lost its qualification as open-space land for tax purposes, to re-apply
for and create a new 5-year history before its value as open-space land or
agricultural land can be considered. If land loses its qualification as
open-space land, under the Tax Code, it is subject to a rollback tax
penalty because of the change in usage of the land. This legislation would
allow new owners of previously qualified land that had lost its
qualification as open-space land in the last 10 years the opportunity to
register with the county tax appraiser their intent to convert the land
back to agricultural use as open-space land. The owner would receive an
immediate tax rate valuation change to open-space land. The owner would
then have three years, to re-establish the land to be in total compliance
with the current Tax Code degree of intensity standards. If, at the end of
three years, the landowner has not met the minimum intensity requirements,
the owner would be responsible for paying rollback taxes along with
interest for the three years that he had received the lower open-space
land valuation for tax purposes. 

RULEMAKING AUTHORITY

It is the committee's opinion that this resolution does not expressly
grant any additional rulemaking authority to a state officer, department,
agency, or institution. 

ANALYSIS

House Joint Resolution 72  provides for a constitutional amendment to
accompany House Bill 1821. HJR 72 amends section 1-d-1, Article VIII of
the Constitution to allow the legislature to enact legislation providing a
buyer of agricultural land, upon purchasing the land, the opportunity to
register with the county tax appraiser their intent to convert the land
back to agricultural use that would qualify it as open-space  land, and
immediately receive a tax rate valuation change on the basis of its
productive capacity. The new owner must be in full compliance with the
open-space land qualifications within three years. 

FOR ELECTION

The proposed constitutional amendment shall be submitted to the voters at
an election to be held November 4, 2003.