78R3291 JD-D
By: Wilson H.B. No. 480
A BILL TO BE ENTITLED
AN ACT
relating to eligibility of land located in certain municipalities
to be appraised for ad valorem tax purposes as land designated for
agricultural use, open-space land, timber land, or restricted-use
timber land.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 23.42, Tax Code, is amended by amending
Subsection (a) and adding Subsection (a-1) to read as follows:
(a) Except as provided by Subsection (a-1), an [An]
individual is entitled to have land the individual [he] owns
designated for agricultural use if, on January 1:
(1) the land has been devoted exclusively to or
developed continuously for agriculture for the three years
preceding the current year;
(2) the individual [he] is using and intends to use the
land for agriculture as an occupation or a business venture for
profit during the current year; and
(3) agriculture is the individual's [his] primary
occupation and primary source of income.
(a-1) Land is not eligible to be designated for agricultural
use if the land is located inside the corporate limits of an
incorporated city or town having a population of 500,000 or more.
SECTION 2. Section 23.56, Tax Code, is amended to read as
follows:
Sec. 23.56. LAND INELIGIBLE FOR APPRAISAL AS OPEN-SPACE
LAND. Land is not eligible for appraisal as provided by this
subchapter if:
(1) the land is located inside the corporate limits of
an incorporated city or town, unless the city or town has a
population of less than 500,000 and:
(A) the city or town is not providing the land
with governmental and proprietary services substantially
equivalent in standard and scope to those services it provides in
other parts of the city or town with similar topography, land
utilization, and population density; or
(B) the land has been devoted principally to
agricultural use continuously for the preceding five years;
(2) the land is owned by an individual who is a
nonresident alien or by a foreign government if that individual or
government is required by federal law or by rule adopted pursuant to
federal law to register his ownership or acquisition of that
property; or
(3) the land is owned by a corporation, partnership,
trust, or other legal entity if the entity is required by federal
law or by rule adopted pursuant to federal law to register its
ownership or acquisition of that land and a nonresident alien or a
foreign government or any combination of nonresident aliens and
foreign governments own a majority interest in the entity.
SECTION 3. Section 23.77, Tax Code, is amended to read as
follows:
Sec. 23.77. LAND INELIGIBLE FOR APPRAISAL AS TIMBER LAND.
Land is not eligible for appraisal as provided by this subchapter
if:
(1) the land is located inside the corporate limits of
an incorporated city or town, unless the city or town has a
population of less than 500,000 and:
(A) the city or town is not providing the land
with governmental and proprietary services substantially
equivalent in standard and scope to those services it provides in
other parts of the city or town with similar topography, land
utilization, and population density; or
(B) the land has been devoted principally to
production of timber or forest products continuously for the
preceding five years;
(2) the land is owned by an individual who is a
nonresident alien or by a foreign government if that individual or
government is required by federal law or by rule adopted pursuant to
federal law to register his ownership or acquisition of that
property; or
(3) the land is owned by a corporation, partnership,
trust, or other legal entity if the entity is required by federal
law or by rule adopted pursuant to federal law to register its
ownership or acquisition of that land and a nonresident alien or a
foreign government or any combination of nonresident aliens and
foreign governments own a majority interest in the entity.
SECTION 4. Subchapter H, Chapter 23, Tax Code, is amended by
adding Section 23.98025 to read as follows:
Sec. 23.98025. LAND INELIGIBLE FOR APPRAISAL AS
RESTRICTED-USE TIMBER LAND. Land is not eligible for appraisal as
provided by this subchapter if the land is located inside the
corporate limits of an incorporated city or town having a
population of 500,000 or more.
SECTION 5. This Act takes effect January 1, 2004, and
applies only to an ad valorem tax year that begins on or after that
date.