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A BILL TO BE ENTITLED
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AN ACT
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relating to the additional ad valorem tax and interest imposed as a |
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result of a change of use of certain land. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 23.55(a), Tax Code, is amended to read as |
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follows: |
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(a) If the use of land that has been appraised as provided by |
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this subchapter changes, an additional tax is imposed on the land |
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equal to the difference between the taxes imposed on the land for |
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each of the three [five] years preceding the year in which the |
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change of use occurs that the land was appraised as provided by this |
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subchapter and the tax that would have been imposed had the land |
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been taxed on the basis of market value in each of those years, plus |
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interest at an annual rate of five [seven] percent calculated from |
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the dates on which the differences would have become due. For |
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purposes of this subsection, the chief appraiser may not consider |
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any period during which land is owned by the state in determining |
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whether a change in the use of the land has occurred. |
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SECTION 2. Section 23.76(a), Tax Code, is amended to read as |
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follows: |
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(a) If the use of land that has been appraised as provided by |
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this subchapter changes, an additional tax is imposed on the land |
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equal to the difference between the taxes imposed on the land for |
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each of the three [five] years preceding the year in which the |
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change of use occurs that the land was appraised as provided by this |
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subchapter and the tax that would have been imposed had the land |
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been taxed on the basis of market value in each of those years, plus |
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interest at an annual rate of five [seven] percent calculated from |
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the dates on which the differences would have become due. |
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SECTION 3. The changes in law made by this Act apply only to |
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a change of use of land appraised under Subchapter D or E, Chapter |
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23, Tax Code, that occurs on or after the effective date of this |
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Act. A change in the use of land appraised under Subchapter D or E, |
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Chapter 23, Tax Code, that occurs before the effective date of this |
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Act is governed by the law in effect on the date the change of use |
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occurred, and the former law is continued in effect for that |
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purpose. |
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SECTION 4. This Act takes effect September 1, 2019. |