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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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Subdivision (2) 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; 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. |
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SECTION 2. Subchapter D, Chapter 23, Tax Code, is amended by |
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adding Sections 23.5215 to read as follows: |
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Sec. 23.5215. GUIDELINES FOR UNCOMMON AGRICULTURAL USES. |
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(a) The comptroller, in consultation with the Texas A&M AgriLife |
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Extension Service, individuals selected by the comptroller who |
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represent appraisal districts, and individuals selected by the |
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comptroller who represent small-scale producers, shall develop |
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guidelines for determining the degree of intensity for different |
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types of production methods and under what conditions the |
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cumulative effect of multiple agricultural uses of a tract of land |
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meets the degree of intensity generally accepted in the area. |
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(b) The comptroller, in consultation with the Texas A&M |
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AgriLife Extension Service, individuals selected by the |
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comptroller who represent appraisal districts, and individuals |
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selected by the comptroller who represent small-scale producers, |
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shall develop guidelines for determining under what conditions land |
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under 10 acres in size used for the production of fruits, |
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vegetables, poultry, hogs, sheep, or goats qualifies for appraisal |
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under this subchapter. The guidelines must provide that land under |
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10 acres in size that qualifies for appraisal under this subchapter |
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solely on the basis of the guidelines developed under this section |
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may not subsequently qualify under Section 23.51(7) for appraisal |
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under this subchapter if the owner changes the use of the land to |
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wildlife management. |
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(c) The guidelines developed under this section may include |
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recordkeeping requirements consistent with normal practices of |
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agricultural operations. |
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(d) The comptroller in developing guidelines under this |
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section may consider the following factors: |
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(1) the financial investment of a producer in an |
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agricultural use of a tract of land; |
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(2) the degree of active management of a producer in |
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the agricultural use of a tract of land; |
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(3) the percentage of a tract of land used by a |
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producer for agricultural uses; and |
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(4) any other factor the comptroller considers |
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appropriate. |
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(e) The comptroller, in cooperation with appraisal |
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districts, shall provide educational resources to chief appraisers |
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to assist with the appraisal of land using the guidelines developed |
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under this section. |
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(f) The comptroller shall convene stakeholder groups to |
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review the guidelines created under this section at least once |
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every 10 years, and shall issue new guidelines as appropriate. |
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SECTION 3. (a) Not later than September 1, 2018, the |
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comptroller shall develop standards required by Section 23.5215, |
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Tax Code, as added by this Act, and shall distribute those standards |
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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, 2019. |
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SECTION 5. This Act takes effect September 1, 2017. |