By: Madla S.B. No. 480
A BILL TO BE ENTITLED
AN ACT
relating to excepting certain land from the additional tax imposed
on the change of use of land appraised for ad valorem tax purposes
as open-space land.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 23.55, Tax Code, is amended by amending
Subsection (f) and adding Subsections (m) and (n) to read as
follows:
(f) The sanctions provided by Subsection (a) of this section
do not apply if the change of use occurs as a result of:
(1) a sale for right-of-way;
(2) a condemnation; [or]
(3) a transfer of the property to the state or a
political subdivision of the state to be used for a public purpose;
or
(4) a transfer of the property from the state, a
political subdivision of the state, or a nonprofit corporation
created by a municipality with a population of more than one million
under the Development Corporation Act of 1979 (Article 5190.6,
Vernon's Texas Civil Statutes) to an individual or a business
entity for purposes of economic development if the comptroller
determines that the economic development is likely to generate for
deposit in the general revenue fund in the next fiscal biennium an
amount of taxes and other revenues that equals or exceeds 20 times
the amount of additional taxes and interest that would have been
imposed under Subsection (a) had the sanctions provided by that
subsection applied to the transfer.
(m) For purposes of determining whether a transfer of land
qualifies for the exemption from additional taxes provided by
Subsection (f)(4), on an application of the entity transferring or
proposing to transfer the land or of the individual or entity to
which the land is transferred or proposed to be transferred, the
comptroller shall determine the amount of taxes and other revenues
likely to be generated as a result of the economic development for
deposit in the general revenue fund in the next fiscal biennium. If
the comptroller determines that the amount of those revenues is
likely to equal or exceed 20 times the amount of additional taxes
and interest that would be imposed under Subsection (a) if the
sanctions provided by that subsection applied to the transfer, the
comptroller shall issue a letter to the applicant stating the
comptroller's determination and shall send a copy of the letter by
regular mail to the chief appraiser.
(n) Within one year of the conclusion of the fiscal biennium
for which the comptroller issued a letter as provided under
Subsection (m), the board of directors of the appraisal district,
by official board action, may direct the chief appraiser to request
the comptroller to determine if the amount of revenues was equal to
or exceeded 20 times the amount of taxes and interest that would
have been imposed under Subsection (a). The comptroller shall
issue a finding as to whether the amount of revenue met the
projected increases. The chief appraiser shall review the results
of the comptroller's finding and shall make a determination as to
whether sanctions under Subsection (a) should be imposed. If the
chief appraiser determines that the sanctions provided by
Subsection (a) shall be imposed, the sanctions shall be based on the
date of the transfer of the property under Subsection (f)(4).
SECTION 2. (a) This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this Act takes effect September 1, 2003.
(b) The change in law made by this Act applies only to a
change of use of land that occurs on or after the effective date of
this Act. A change of use of land that occurs before the effective
date of this Act is governed by the law as it existed immediately
before the effective date of this Act, and that law is continued in
effect for that purpose.
COMMITTEE AMENDMENT NO. 1
Amend S.B. No. 480 as follows:
(1) In SECTION 1 of the bill, in proposed Section
23.55(f)(4), Tax Code (Senate engrossed version, page 1, line 23),
strike "in the next fiscal biennium" and substitute "during the
next two fiscal bienniums".
(2) In SECTION 1 of the bill, in proposed Section 23.55(m),
Tax Code (Senate engrossed version, page 2, line 11), strike "in the
next fiscal biennium" and substitute "during the next two fiscal
bienniums".
(3) In SECTION 1 of the bill, in proposed Section 23.55(n),
Tax Code (Senate engrossed version, page 2, line 19), strike
"fiscal biennium" and substitute "two fiscal bienniums".
78R16764 RCJ-D Hill