SRC-TJG C.S.S.B. 480 78(R)BILL ANALYSIS


Senate Research CenterC.S.S.B. 480
78R11621 RCJ-DBy: Madla
Finance
4/25/2003
Committee Report (Substituted)


DIGEST AND PURPOSE 

Currently, if the use of land that has been appraised changes, an
additional tax is imposed on the land equal to the difference between the
taxes imposed on the land for each of the five years preceding the year in
which the change  of use occurs that the land was appraised and the tax
that would have been imposed had the land been taxed on the basis of
market value in each of those years, plus interest at an annual rate of
seven percent calculated from the dates on which the differences would
have become due.  However, an exemption exists which states this tax does
not apply if there is a transfer of property to the state or a political
subdivision of the state to be used for a public purpose.  C.S.S.B. 480
would exempt certain land from the additional tax imposed on the change of
use on land appraised for ad valorem tax purposes as open-space land if
the property is the subject of transfer from the state or a political
subdivision of the state to an individual or a business entity for
purposes of economic development. 

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 Section 23.55, Tax Code, by amending Subsection (f) and
adding Subsections (m) and (n), as follows: 

(f) Provides that the sanctions provided by Subsection (a) of this section
do not apply if the change of use occurs as a result of certain actions.
Makes a nonsubstantive change.  

(m) Requires the comptroller of public accounts (comptroller), for
purposes of determining whether a transfer of land qualifies for the
exemption from additional taxes provided by Subsection (f)(4), on the
application of the entity transferring or proposing to transfer the land
or of the individual or entity to which the land is transferred or
proposed to be transferred, to determine the amount of taxes and other
revenues likely to be generated as a result of the economic development
for deposit in the general revenue fund in the next fiscal biennium.
Requires the comptroller, if the comptroller determines that the amount of
those revenues is likely to equal or exceed 20 times the amount of
additional taxes and interest that would be imposed under Subsection (a)
if the sanctions provided by that subsection applied to the transfer, to
issue a letter to the applicant stating the comptroller's determination
and send a copy of the letter by regular mail to the chief appraiser. 

(n) Authorizes the board of directors of the appraisal district (board),
by official board action, to direct the chief appraiser to request the
comptroller to determine if the amount of revenues was equal to or
exceeded 20 times the amount of taxes and interest that would have been
imposed under Subsection (a), within one year of the conclusion of the
fiscal biennium for which the comptroller issued a letter as provided
under Subsection (m).  Requires the comptroller to issue a finding as to
whether sanctions under Subsection (a) should be imposed.  Requires the
sanctions to be based on the date of transfer of the property, pursuant to
Subsection (f)(4), if the chief appraiser determines that the sanctions
provided by Subsection (a) shall be imposed. 
 
SECTION 2.  (a) Effective date: upon passage or September 1, 2003.

(b) Makes application of this Act prospective.