TO: | Honorable Tracy O. King, Chair, House Committee on Agriculture & Livestock |
FROM: | Ursula Parks, Director, Legislative Budget Board |
IN RE: | HB1306 by Rodriguez, Eddie (Relating to the eligibility of land for appraisal for ad valorem tax purposes as qualified open-space land.), Committee Report 1st House, Substituted |
However, there would be fiscal implications beginning in FY 2016.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2014 | $0 |
2015 | $0 |
2016 | ($2,029,000) |
2017 | ($6,727,000) |
2018 | ($11,866,000) |
Fiscal Year | Probable Savings/(Cost) from Foundation School Fund 193 |
Probable Revenue (Loss) from School Districts |
Probable Revenue (Loss) from Counties |
Probable Revenue (Loss) from Cities |
---|---|---|---|---|
2014 | $0 | $0 | $0 | $0 |
2015 | $0 | $0 | $0 | $0 |
2016 | ($2,029,000) | ($3,264,000) | ($1,608,000) | ($1,785,000) |
2017 | ($6,727,000) | ($4,402,000) | ($3,369,000) | ($3,746,000) |
2018 | ($11,866,000) | ($5,684,000) | ($5,294,000) | ($5,896,000) |
Fiscal Year | Probable Revenue Gain/(Loss) from Other Special Districts |
---|---|
2014 | $0 |
2015 | $0 |
2016 | ($1,174,000) |
2017 | ($2,459,000) |
2018 | ($3,860,000) |
This bill would amend Section 23.51 of the Tax Code, regarding property taxation, appraisal methods and procedure, and definitions.
The bill would revise the qualification standards for appraisal of open space land (agricultural productivity valuation). The bill would provide that the term agricultural use also includes producing fruits and vegetables and using land for a non-profit community garden. "Nonprofit community garden" means land owned or leased by a nonprofit entity and gardened by a cooperative group of people residing in a neighborhood or community for the purpose of providing without profit fresh produce for the benefit of the residents of the neighborhood or community.
The Comptroller would be required to consult with the Texas A&M AgriLife Extension Service and individuals selected by the comptroller who are nonprofit community garden stakeholders to develop guidelines for determining whether land qualifies as a nonprofit community garden when located in a county with a population of one million or more.
The bill would take effect on September 1, 2013.
The negative fiscal impact after 2018 would increase because of the open space five year history of agricultural use requirement. Many taxpayers, upon learning of the tax savings afforded by the changes proposed by the bill would begin an agricultural use that would permit them to qualify after the required five year agricultural use period.
Source Agencies: | 304 Comptroller of Public Accounts
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LBB Staff: | UP, SZ, SD, SJS
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