H.B. No. 1409
 
 
 
 
AN ACT
  relating to the qualification of land for appraisal for ad valorem
  tax purposes as timber land or restricted-use timber land.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 23.72, Tax Code, is amended to read as
  follows:
         Sec. 23.72.  QUALIFICATION FOR PRODUCTIVITY APPRAISAL. (a)
  Land qualifies for appraisal as provided by this subchapter if it is
  currently and actively devoted principally to production of timber
  or forest products to the degree of intensity generally accepted in
  the area with intent to produce income and has been devoted
  principally to production of timber or forest products or to
  agricultural use that would qualify the land for appraisal under
  Subchapter C or D [of this chapter] for five of the preceding seven
  years.
         (b)  In determining whether land is currently and actively
  devoted principally to the production of timber or forest products
  to the degree of intensity generally accepted in an area, a chief
  appraiser may not consider the purpose for which a portion of a
  parcel of land is used if the portion is:
               (1)  used for the production of timber or forest
  products, including a road, right-of-way, buffer area, or
  firebreak; or
               (2)  subject to a right-of-way that was taken through
  the exercise of the power of eminent domain.
         (c)  For the purpose of the appraisal of land under this
  subchapter, a portion of a parcel of land described by Subsection
  (b) is considered land that qualifies for appraisal under this
  subchapter if the remainder of the parcel of land qualifies for
  appraisal under this subchapter.
         SECTION 2.  Subchapter E, Chapter 23, Tax Code, is amended by
  adding Section 23.765 to read as follows:
         Sec. 23.765.  OIL AND GAS OPERATIONS ON LAND. The
  eligibility of land for appraisal under this subchapter does not
  end because a lessee under an oil and gas lease begins conducting
  oil and gas operations over which the Railroad Commission of Texas
  has jurisdiction on the land if the portion of the land on which oil
  and gas operations are not being conducted otherwise continues to
  qualify for appraisal under this subchapter.
         SECTION 3.  Section 23.9802, Tax Code, is amended by adding
  Subsections (d) and (e) to read as follows:
         (d)  In determining whether land qualifies for appraisal as
  provided by this subchapter, a chief appraiser may not consider the
  purpose for which a portion of a parcel of land is used if the
  portion is:
               (1)  used for the production of timber or forest
  products, including a road, right-of-way, buffer area, or
  firebreak; or
               (2)  subject to a right-of-way that was taken through
  the exercise of the power of eminent domain.
         (e)  For the purpose of the appraisal of land under this
  subchapter, a portion of a parcel of land described by Subsection
  (d) is considered land that qualifies for appraisal under this
  subchapter if the remainder of the parcel of land qualifies for
  appraisal under this subchapter.
         SECTION 4.  Subchapter H, Chapter 23, Tax Code, is amended by
  adding Section 23.9808 to read as follows:
         Sec. 23.9808.  OIL AND GAS OPERATIONS ON LAND. The
  eligibility of land for appraisal under this subchapter does not
  end because a lessee under an oil and gas lease begins conducting
  oil and gas operations over which the Railroad Commission of Texas
  has jurisdiction on the land if the portion of the land on which oil
  and gas operations are not being conducted otherwise continues to
  qualify for appraisal under this subchapter.
         SECTION 5.  (a) Sections 23.72 and 23.9802, Tax Code, as
  amended by this Act, apply only to the appraisal of land for ad
  valorem tax purposes for a tax year that begins on or after the
  effective date of this Act.
         (b)  Sections 23.765 and 23.9808, Tax Code, as added by this
  Act, do not affect an additional tax imposed as a result of a change
  of use of land appraised under Subchapter E or H, Chapter 23, Tax
  Code, that occurred before the effective date of this Act.
         SECTION 6.  This Act takes effect September 1, 2019.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1409 was passed by the House on April
  09, 2019, by the following vote:  Yeas 143, Nays 1, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 1409 was passed by the Senate on May
  2, 2019, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor