78R8395 KCR-F


By:  Flores                                                       H.B. No. 2255



A BILL TO BE ENTITLED

AN ACT

relating to the payment of deferred taxes on certain agricultural 
land.     
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 23.46(c), Tax Code, is amended to read as 
follows:       
	(c)  If land that has been designated for agricultural use in 
any year is sold or diverted to a nonagricultural use, the total 
amount of additional taxes for the three years preceding the year in 
which the land is sold or diverted plus interest at the rate 
provided for delinquent taxes becomes due.  A determination that 
the land has been diverted to a nonagricultural use is made by the 
chief appraiser.  For purposes of this subsection, the chief 
appraiser may not consider any period during which land is owned by 
the state in determining whether the land has been diverted to a 
nonagricultural use.  The chief appraiser shall deliver a notice of 
the determination to the owner of the land as soon as possible after 
making the determination and shall include in the notice an 
explanation of the owner's right to protest the determination.  If 
the owner does not file a timely protest or if the final 
determination of the protest is that the additional taxes are due, 
the assessor for each taxing unit shall prepare and deliver a bill 
for the additional taxes plus interest as soon as practicable after 
the change of use occurs.  If the additional taxes are due because 
of a sale of the land, the assessor for each taxing unit shall 
prepare and deliver the bill as soon as practicable after the sale 
occurs.  The taxes and interest are due and become delinquent and 
incur penalties and interest as provided by law for ad valorem taxes 
imposed by the taxing unit if not paid before the first day of the 
next month that will provide a period of at least 21 days after the 
date of mailing of the bill [next February 1 that is at least 20 days 
after the date the bill is delivered to the owner of the land].
	SECTION 2.  Section 23.55(e), Tax Code, is amended to read as 
follows:       
	(e)  A determination that a change in use of the land has 
occurred is made by the chief appraiser.  The chief appraiser shall 
deliver a notice of the determination to the owner of the land as 
soon as possible after making the determination and shall include 
in the notice an explanation of the owner's right to protest the 
determination.  If the owner does not file a timely protest or if 
the final determination of the protest is that the additional taxes 
are due, the assessor for each taxing unit shall prepare and deliver 
a bill for the additional taxes plus interest as soon as 
practicable.  The taxes and interest are due and become delinquent 
and incur penalties and interest as provided by law for ad valorem 
taxes imposed by the taxing unit if not paid before the first day of 
the next month that will provide a period of at least 21 days after 
the date of mailing of the bill [next February 1 that is at least 20 
days after the date the bill is delivered to the owner of the land].
	SECTION 3.  This Act takes effect January 1, 2004, and 
applies only to an additional tax imposed under Section 23.46 or 
23.55, Tax Code, on or after the effective date of this Act.  An 
additional tax that is imposed before the effective date of this Act 
is governed by the law in effect when the tax was imposed, and that 
law is continued in effect for that purpose.