BILL ANALYSIS

H.B. 3822

By: Darby

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

It has been noted that if a landowner executes a possession and use agreement prior to a governmental entity acquiring title to the parcel by deed or condemnation judgment, the landowner will continue to be liable for property taxes until one of the later proration events occurs, even though the owner has forgone the right to use or possess the property because of the agreement. H.B. 3822 seeks to address this issue by providing for the prorated calculation of the amount of the property tax due on certain property under a possession and use agreement. 

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. 3822 amends the Tax Code to provide for the prorated calculation of the amount of the property tax due on property of which the federal government, the state, or a political subdivision of the state takes possession under a possession and use agreement or in an eminent domain condemnation proceeding pending the results of further litigation. 

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2019.