78R4532 JD-F

By:  Staples                                                      S.B. No. 1364



A BILL TO BE ENTITLED

AN ACT

relating to the additional tax imposed on land appraised for ad 
valorem taxation as timber land that is claimed as part of a 
residence homestead or diverted to certain other uses.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 23.76, Tax Code, is amended by adding 
Subsections (h)-(k) to read as follows:
	(h)  The use of land does not change for purposes of 
Subsection (a) solely because the owner of the land claims it as 
part of the owner's residence homestead for purposes of Section 
11.13.
	(i)  The sanctions provided by Subsection (a) do not apply to 
land owned by an organization that qualifies as a religious 
organization under Section 11.20(c) if the organization converts 
the land to a use for which the land is eligible for an exemption 
under Section 11.20 within five years.
	(j)  The sanctions provided by Subsection (a) do not apply to 
a change in the use of land if:
		(1)  the land is located in an unincorporated area of a 
county with a population of less than 100,000;
		(2)  the land does not exceed five acres;                              
		(3)  the land is owned by a not-for-profit cemetery 
organization;    
		(4)  the cemetery organization dedicates the land for a 
cemetery purpose;
		(5)  the cemetery organization has not dedicated more 
than five acres of land in the county for a cemetery purpose in the 
five years preceding the date the cemetery organization dedicates 
the land for a cemetery purpose; and
		(6)  the land is adjacent to a cemetery that has been in 
existence for more than 100 years.
	(k)  In Subsection (j), "cemetery," "cemetery organization," 
and "cemetery purpose" have the meanings assigned those terms by 
Section 711.001, Health and Safety Code.
	SECTION 2.  (a)  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 in effect when the change of 
use occurs, and that law is continued in effect for that purpose.