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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 to continue to be appraised for |
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ad valorem tax purposes as qualified open-space land if the land |
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begins to be used for oil and gas operations. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter D, Chapter 23, Tax Code, is amended by |
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adding Section 23.524 to read as follows: |
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Sec. 23.524. OIL AND GAS OPERATIONS ON LAND. The |
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eligibility of land for appraisal under this subchapter does not |
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end because a lessee under an oil and gas lease begins conducting |
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oil and gas operations over which the Railroad Commission of Texas |
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has jurisdiction on the land if the portion of the land on which oil |
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and gas operations are not being conducted otherwise continues to |
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qualify for appraisal under this subchapter. |
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SECTION 2. The change in law made by this Act does not |
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affect an additional tax imposed as a result of a change of use of |
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land appraised under Subchapter D, Chapter 23, Tax Code, that |
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occurred before the effective date of this Act. |
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SECTION 3. This Act takes effect on the date on which the |
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constitutional amendment proposed by the 85th Legislature, Regular |
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Session, 2017, authorizing the legislature to provide that the |
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eligibility of open-space land for ad valorem taxation on the basis |
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of its productive capacity does not end because an oil and gas |
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lessee begins conducting oil and gas operations on the land if the |
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land otherwise continues to be devoted to farm, ranch, or wildlife |
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management purposes or timber production is approved by the voters. |
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If that amendment is not approved by the voters, this Act has no |
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effect. |