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A BILL TO BE ENTITLED
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AN ACT
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relating to the appraisal for ad valorem tax purposes of open-space |
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land devoted to water stewardship purposes on the basis of its |
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productive capacity. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 23.51, Tax Code, is amended by amending |
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Subdivision (2) and adding Subdivision (9) to read as follows: |
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(2) "Agricultural use" includes but is not limited to |
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the following activities: cultivating the soil, producing crops for |
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human food, animal feed, or planting seed or for the production of |
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fibers; floriculture, viticulture, and horticulture; raising or |
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keeping livestock; raising or keeping exotic animals for the |
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production of human food or of fiber, leather, pelts, or other |
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tangible products having a commercial value; planting cover crops |
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or leaving land idle for the purpose of participating in a |
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governmental program, provided the land is not used for residential |
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purposes or a purpose inconsistent with agricultural use; and |
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planting cover crops or leaving land idle in conjunction with |
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normal crop or livestock rotation procedure. The term also |
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includes the use of land to produce or harvest logs and posts for |
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the use in constructing or repairing fences, pens, barns, or other |
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agricultural improvements on adjacent qualified open-space land |
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having the same owner and devoted to a different agricultural use. |
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The term also includes the use of land for wildlife management or |
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water stewardship. |
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(9) "Water stewardship" means: |
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(A) actively using land that at the time the |
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water-stewardship use began was appraised as qualified open-space |
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land under this subchapter or as qualified timber land under |
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Subchapter E in at least three of the following ways to promote and |
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sustain water quality and conservation of water resources: |
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(i) erosion control; |
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(ii) habitat stewardship benefiting water |
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quality or conservation; |
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(iii) restoration of native aquatic and |
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riparian animal and plant species; |
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(iv) implementation of water-efficient |
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irrigation practices; |
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(v) riparian and wetland habitat and buffer |
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restoration and protection; |
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(vi) allowance of groundwater and surface |
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water monitoring for data collection purposes in accordance with |
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state water planning or groundwater management area planning; and |
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(vii) invasive aquatic plant and animal |
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control; |
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(B) maintaining a water right on deposit in the |
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Texas Water Trust in accordance with Section 15.7031, Water Code, |
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if the source of supply or point of diversion is located on land |
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that at the time the water right was deposited was appraised as |
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qualified open-space land under this subchapter or as qualified |
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timber land under Subchapter E; or |
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(C) holding a water right that authorizes the use |
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of water for instream flows dedicated to environmental needs or bay |
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and estuary inflows as provided by Section 11.0237, Water Code, if |
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the source of supply or point of diversion is located on land that, |
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at the time the water right was amended to authorize that use, was |
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appraised as qualified open-space land under this subchapter or as |
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qualified timber land under Subchapter E. |
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SECTION 2. Section 23.52(g), Tax Code, is amended to read as |
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follows: |
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(g) The category of land that qualifies under Section |
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23.51(7) or 23.51(9) is the category of the land under this |
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subchapter or Subchapter E, as applicable, before the |
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wildlife-management use or water-stewardship use, as applicable, |
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began. |
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SECTION 3. Subchapter D, Chapter 23, Tax Code, is amended by |
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adding Section 23.5215 to read as follows: |
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Sec. 23.5215. STANDARDS FOR QUALIFICATION OF LAND FOR |
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APPRAISAL BASED ON WATER-STEWARDSHIP USE. (a) The State Soil and |
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Water Conservation Board, with the assistance of the comptroller, |
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shall develop standards for determining whether land qualifies |
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under Section 23.51(9) for appraisal under this subchapter. The |
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comptroller by rule shall adopt the standards developed by the |
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State Soil and Water Conservation Board and distribute those rules |
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to each appraisal district. On request of the State Soil and Water |
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Conservation Board, the Texas AgriLife Extension Service shall |
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assist the board in developing the standards. |
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(b) The standards adopted under Subsection (a) may require |
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that a tract of land be a specified minimum size or contain specific |
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water-related attributes or that the owner of the land hold water |
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rights authorizing appropriation of a specified minimum amount of |
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water from a source of supply or point of diversion located on the |
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land for the land to qualify under Section 23.51(9) for appraisal |
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under this subchapter, taking into consideration one or more of the |
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following factors: |
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(1) the activities listed in Section 23.51(9); |
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(2) the region in this state in which the land is |
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located; and |
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(3) any other factor the State Soil and Water |
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Conservation Board determines is relevant. |
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(c) The standards adopted under Subsection (a) may include |
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specifications for a written management plan to be developed by a |
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landowner if the landowner receives a request for a written |
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management plan from a chief appraiser as part of a request for |
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additional information under Section 23.57. |
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(d) In determining whether land qualifies under Section |
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23.51(9) for appraisal under this subchapter, the chief appraiser |
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and the appraisal review board shall apply the standards adopted |
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under Subsection (a) and, to the extent they do not conflict with |
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those standards, the appraisal manuals developed and distributed |
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under Section 23.52(d). |
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SECTION 4. Section 23.56, Tax Code, is amended to read as |
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follows: |
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Sec. 23.56. LAND INELIGIBLE FOR APPRAISAL AS OPEN-SPACE |
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LAND. (a) Land is not eligible for appraisal as provided by this |
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subchapter if: |
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(1) the land is located inside the corporate limits of |
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an incorporated city or town, unless: |
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(A) the city or town is not providing the land |
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with governmental and proprietary services substantially |
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equivalent in standard and scope to those services it provides in |
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other parts of the city or town with similar topography, land |
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utilization, and population density; |
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(B) the land has been devoted principally to |
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agricultural use continuously for the preceding five years; or |
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(C) the land: |
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(i) has been devoted principally to |
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agricultural use or to production of timber or forest products |
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continuously for the preceding five years; and |
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(ii) is used for wildlife management or |
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water stewardship; |
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(2) the land is owned by an individual who is a |
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nonresident alien or by a foreign government if that individual or |
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government is required by federal law or by rule adopted pursuant to |
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federal law to register his ownership or acquisition of that |
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property; or |
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(3) the land is owned by a corporation, partnership, |
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trust, or other legal entity if the entity is required by federal |
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law or by rule adopted pursuant to federal law to register its |
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ownership or acquisition of that land and a nonresident alien or a |
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foreign government or any combination of nonresident aliens and |
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foreign governments own a majority interest in the entity. |
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(b) Land is not eligible for appraisal as provided by this |
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subchapter on the basis of use for water stewardship if: |
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(1) the land was appraised as qualified open-space |
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land under this subchapter at the time the water-stewardship use |
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began and the land is developed to a degree that precludes the land |
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from eligibility for appraisal under this subchapter on a basis |
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other than use for water stewardship; or |
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(2) the land was appraised as qualified timber land |
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under Subchapter E at the time the water-stewardship use began and |
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the land is developed to a degree that precludes the land from |
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eligibility for appraisal under that subchapter. |
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SECTION 5. Section 23.60(a), Tax Code, is amended to read as |
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follows: |
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(a) An owner of qualified open-space land, other than land |
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used for wildlife management or water stewardship, on which the |
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Texas Animal Health Commission has established a temporary |
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quarantine of at least 90 days in length in the current tax year for |
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the purpose of regulating the handling of livestock and eradicating |
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ticks or exposure to ticks at any time during a tax year is entitled |
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to a reappraisal of the owner's land for that year on written |
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request delivered to the chief appraiser. |
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SECTION 6. (a) This Act applies only to the appraisal of |
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land for ad valorem tax purposes for a tax year that begins on or |
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after the effective date of this Act. |
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(b) As soon as practicable after the effective date of this |
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Act the State Soil and Water Conservation Board, with the |
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assistance of the comptroller, shall develop the standards required |
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by Section 23.5215, Tax Code, as added by this Act. As soon as |
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practicable after those standards are developed, the comptroller by |
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rule shall adopt those standards and distribute those rules to each |
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appraisal district as required by that section. The rules apply |
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only to tax years beginning on or after the effective date of this |
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Act. |
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SECTION 7. This Act takes effect January 1, 2012, but only |
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if the constitutional amendment proposed by the 82nd Legislature, |
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Regular Session, 2011, providing for the appraisal for ad valorem |
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tax purposes of open-space land devoted to water stewardship |
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purposes on the basis of its productive capacity is approved by the |
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voters. If that amendment is not approved by the voters, this Act |
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has no effect. |