BILL ANALYSIS

S.J.R. 16

By: Estes

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Currently, landowners can qualify for several property tax valuation options based on land management practices. One of the more frequently used options is the open-space valuation option, commonly referred to as the agricultural exemption. Interested parties assert that adding water stewardship purposes to such options will give land owners a tool to better manage their property and incentivize land owners to invest in projects that improve water quality and quantity for the state.

S.J.R. 16 seeks to propose a constitutional amendment providing for the appraisal for property tax purposes of open-space land devoted to water stewardship purposes on the basis of its productive capacity.

RULEMAKING AUTHORITY

It is the committee's opinion that this resolution does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

S.J.R. 16 proposes an amendment to the Texas Constitution to include open-space land devoted to water stewardship within the scope of a provision requiring the legislature to provide by general law for the taxation of open-space land on the basis of the land's productive capacity when devoted to certain purposes. The resolution creates a temporary provision, set to expire January 1, 2013, making this proposed amendment effective January 1, 2012. The resolution sets out the required ballot language.

ELECTION DATE

The constitutional amendment proposed by this joint resolution will be submitted to the voters at an election to be held November 8, 2011.