BILL ANALYSIS

H.B. 1743

By: King, Tracy O.

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Concerns have been raised that the additional tax and interest imposed on open-space land or timber land when a change in use occurs is outdated and excessive. H.B. 1743 seeks to reduce this tax burden by lowering the rate of the additional tax imposed on such property.

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. 1743 amends the Tax Code to decrease from five to three the number of years preceding a change of use of land appraised for property tax purposes as open-space land or timber land on which the amount of additional tax imposed on the land for the change of use is based and to decrease from seven percent to five percent the annual interest rate added to that additional tax.  

EFFECTIVE DATE

September 1, 2019.