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A BILL TO BE ENTITLED
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AN ACT
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relating to the eligibility of land for appraisal for ad valorem tax |
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purposes as qualified open-space land. |
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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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Subdivisions (1) and (2) and adding Subdivisions (9) and (10) to |
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read as follows: |
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(1) "Qualified open-space land" means land that is |
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currently devoted principally to agricultural use to the degree of |
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intensity generally accepted in the area and that has been devoted |
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principally to agricultural use or to production of timber or |
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forest products for five of the preceding seven years or land that |
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is used principally as an ecological laboratory by a public or |
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private college or university. A chief appraiser shall distinguish |
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between the degree of intensity required for various agricultural |
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production methods, including uncommon production methods or |
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systems. Qualified open-space land includes all appurtenances to |
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the land. For the purposes of this subdivision, appurtenances to |
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the land means private roads, dams, reservoirs, water wells, |
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canals, ditches, terraces, and other reshapings of the soil, |
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fences, and riparian water rights. Notwithstanding the other |
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provisions of this subdivision, land that is currently devoted |
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principally to wildlife management as defined by Subdivision (7)(B) |
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or (C) to the degree of intensity generally accepted in the area |
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qualifies for appraisal as qualified open-space land under this |
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subchapter regardless of the manner in which the land was used in |
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any preceding year. Land may not be disqualified for appraisal as |
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qualified open-space land under this subchapter solely because the |
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method or system by which the land is used for agricultural purposes |
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constitutes an uncommon production method or system. |
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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; producing fruits and vegetables; floriculture, |
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viticulture, and horticulture; raising or keeping livestock; |
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raising or keeping exotic animals for the production of human food |
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or of fiber, leather, pelts, or other tangible products having a |
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commercial value; planting cover crops or leaving land idle for the |
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purpose of participating in a governmental program, provided the |
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land is not used for residential purposes or a purpose inconsistent |
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with agricultural use; and planting cover crops or leaving land |
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idle in conjunction with normal crop or livestock rotation |
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procedure. The term also includes the use of land to produce or |
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harvest logs and posts for the use in constructing or repairing |
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fences, pens, barns, or other agricultural improvements on adjacent |
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qualified open-space land having the same owner and devoted to a |
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different agricultural use. The term also includes the use of land |
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for wildlife management. The term also includes the use of land to |
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raise or keep bees for pollination or for the production of human |
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food or other tangible products having a commercial value, provided |
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that the land used is not less than 5 or more than 20 acres. The |
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term also includes the use of land for a nonprofit community garden. |
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(9) "Nonprofit community garden" means land owned or |
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leased by a nonprofit entity, as defined by Section 1.002, Business |
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Organizations Code, and gardened by a cooperative group of people |
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residing in a neighborhood or community for the purpose of |
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providing without profit fresh produce for the benefit of the |
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residents of the neighborhood or community. |
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(10) "Uncommon production method or system" means a |
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method or system of agricultural use that is nontraditional or not |
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typical for the area, including small-scale production, |
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diversified agricultural use of a tract, pastured poultry, organic |
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and sustainable production, and rotational grazing. |
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SECTION 2. Subchapter D, Chapter 23, Tax Code, is amended by |
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adding Sections 23.5215 and 23.5216 to read as follows: |
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Sec. 23.5215. STANDARDS FOR QUALIFICATION OF LAND IF |
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UNCOMMON PRODUCTION METHOD OR SYSTEM USED. (a) The comptroller, in |
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consultation with the Texas A&M AgriLife Extension Service, the |
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Department of Agriculture, individuals selected by the comptroller |
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who represent urban and rural appraisal districts, and individuals |
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selected by the comptroller who use uncommon production methods or |
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systems, shall develop standards consistent with the definition |
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provided by Section 23.51(10) for determining whether land used for |
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agricultural purposes by means of an uncommon production method or |
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system qualifies for appraisal under this subchapter. The |
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standards must provide that land that qualifies for appraisal under |
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this subchapter solely on the basis of its use for agricultural |
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purposes by means of an uncommon production method or system may not |
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subsequently qualify under Section 23.51(7) for appraisal under |
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this subchapter if the owner changes the use of the land to wildlife |
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management. The comptroller by rule shall adopt the standards |
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developed under this subsection and distribute those standards to |
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each appraisal district. |
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(b) The standards may take into consideration one or more of |
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the following factors: |
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(1) the uncommon production method or system used; |
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(2) the type of agricultural use being made of the |
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land; |
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(3) the region in this state in which the land is |
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located; and |
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(4) any other factor the comptroller determines is |
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relevant. |
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(c) In determining whether land used for agricultural |
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purposes by means of an uncommon production method or system |
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qualifies 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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Sec. 23.5216. STANDARDS FOR QUALIFICATION OF NONPROFIT |
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COMMUNITY GARDENS. (a) The comptroller, in consultation with the |
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Texas A&M AgriLife Extension Service and individuals selected by |
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the comptroller who are nonprofit community garden stakeholders, |
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shall develop standards consistent with the definition provided by |
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Section 23.51(9) for determining whether land qualifies as a |
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nonprofit community garden for appraisal under this subchapter. |
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The comptroller by rule shall adopt the standards developed under |
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this subsection and distribute those standards to each appraisal |
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district. |
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(b) In determining whether land qualifies as a nonprofit |
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community garden for appraisal under this subchapter, the chief |
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appraiser and the appraisal review board shall apply the standards |
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adopted under Subsection (a) and, to the extent they do not conflict |
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with those standards, the appraisal manuals developed and |
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distributed under Section 23.52(d). |
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SECTION 3. (a) Not later than September 1, 2016, the |
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comptroller, in consultation with the Texas A&M Agrilife Extension |
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Service, the Department of Agriculture, and individuals selected by |
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the comptroller under Section 23.5215, Tax Code, as added by this |
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Act, shall develop standards required by that section and shall |
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distribute those standards to each appraisal district. |
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(b) Not later than September 1, 2016, the comptroller, in |
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consultation with the Texas A&M AgriLife Extension Service and |
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individuals selected by the comptroller who are nonprofit community |
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garden stakeholders, shall develop standards required by Section |
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23.5216, Tax Code, as added by this Act, and shall distribute those |
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standards to each appraisal district. |
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SECTION 4. This Act applies only to the appraisal of land |
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for ad valorem tax purposes for a tax year that begins on or after |
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January 1, 2017. |
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SECTION 5. This Act takes effect September 1, 2015. |