By: Coleman H.B. No. 3403
A BILL TO BE ENTITLED
AN ACT
relating to the qualification for appraisal and the appraisal of
qualified restricted-use timber land.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 23.9802, Tax Code, is amended to read as
follows:
Sec. 23.9802. QUALIFICATION FOR APPRAISAL AS
RESTRICTED-USE TIMBER LAND. (a) Land qualifies for appraisal as
provided by this subchapter if the land is in an aesthetic
management zone, critical wildlife habitat zone, or streamside
management zone.
(b) Land qualifies for appraisal as provided by this
subchapter if:
(1) timber was harvested from the land in a year in
which the land was appraised under Subchapter E; and
(2) the land has been regenerated for timber
production to the degree of intensity generally accepted in the
area for commercial timber land and with intent to produce income.
(c) Land ceases to qualify for appraisal under Subsection
(b) on the [10th] 5th anniversary of the date the timber was
harvested under Subsection (b)(1). This subsection does not
disqualify the land from qualifying for appraisal under this
section in a tax year following that anniversary based on the
circumstances existing in that subsequent tax year.
(d) A maximum of 1000 acres, within a county, owned by or
controlled by any one person, legal or natural, may qualify for
appraisal under Subsection (b) in any tax year. A person, legal or
natural, related to the person qualifying for appraisal under
Subsection (b) may not qualify for appraisal under Subsection (b)
in the same tax year for a parcel of land under common control. For
purposes of this Subsection, "person related to" has the meaning as
provided in Section 9.102(63)(A) and (D) and Section 9.102(64) of
the Texas Business & Commerce Code. Real property owned by any
person, not an individual, shall be deemed to be owned by the
person, legal or natural, who controls such person.
SECTION 2. Section 23.9803, Tax Code, is amended to read as
follows:
Sec. 23.9803. APPRAISAL OF QUALIFIED RESTRICTED-USE TIMBER
LAND. (a) Except as provided by Subsection (b), the appraised
value of qualified restricted-use timber land is [one-half]
three-fourths of the appraised value of the land as determined
under Section 23.73(a).
(b) The appraised value determined under Subsection (a) may
not exceed the lesser of:
(1) the market value of the land as determined by other
appraisal methods; or
(2) the appraised value of the land for the year
preceding the first year of appraisal under this subchapter.
(c) The chief appraiser shall determine the market value of
qualified restricted-use timber land and shall record both the
market value and the appraised value in the appraisal records.
SECTION 3. (a) This act takes effect January 1, 2004.
(b) The change in law made by this Act applies only to the
appraisal of qualified timber land for ad valorem tax purposes for a
tax year that begins on or after the effective date of this Act. The
appraisal of qualified timber land for ad valorem tax purposes for a
tax year that began before the effective date of this Act is
governed by the law in effect when the appraisal of the land was
made, and the former law is continued in effect for that purpose.