78R4111 JD-D
By: Rangel H.B. No. 847
A BILL TO BE ENTITLED
AN ACT
relating to the eligibility of land to be appraised as open-space
land for ad valorem tax purposes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. 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:
(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; or
(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 that does not derive at least 10
percent of its income from agricultural production [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 2. This Act takes effect January 1, 2004, and
applies only to the appraisal of land for ad valorem tax purposes
for a tax year that begins on or after that date.