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.