| TO: | Honorable Fred Hill, Chair, House Committee on Local Government Ways and Means |
| FROM: | John Keel, Director, Legislative Budget Board |
| IN RE: | HB3050 by Hunter (Relating to excepting land of certain charitable organizations from the additional tax imposed on the change of use of land appraised for ad valorem tax purposes as open-space land.), As Introduced |
The bill would amend Section 23.55 of the Tax Code to provide that land changed to a non-agricultural purpose would not trigger a change of use in the property relative to application of the "rollback tax" penalty, if the land was owned by a qualified charitable organization and the organization converted the land to a qualifying use under Section 11.18 (d)(19) as a retirement community within five years of the change of use. These amounts do not impact the amount of taxable property values reported by the Comptroller to the Commissioner of Education. As a result, no fiscal implication to the State is anticipated.
The penalty is equal to the difference between the property taxes imposed on the land for each of the preceding five years, preceding the year in which the change of use occurs, and the tax that would have been imposed had the land been taxed on the basis of market value in each of those years, plus interest at an annual rate of seven percent. Passage of this bill would result in a revenue loss to taxing units in instances where a change of use under current law would trigger application of the rollback penalty.
| Source Agencies: | 304 Comptroller of Public Accounts
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| LBB Staff: | JK, SD, WP, DLBe
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