BILL ANALYSIS

H.B. 3198

By: Darby

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Interested parties contend that the rollback tax provisions affecting land that has been appraised as agricultural land for property tax purposes could negatively affect oil and gas operations.  H.B. 3198 seeks to provide protections against rollback taxes on land whose use changes as a result of certain oil and gas operations.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

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

ANALYSIS

H.B. 3198 amends the Tax Code to except a change of land use that occurs as a result of a lessee conducting oil and gas operations under a lease over which the Railroad Commission of Texas has jurisdiction from certain sanctions imposed on land that had been appraised as agricultural land and for which the use changes.

EFFECTIVE DATE

September 1, 2017.