87R9910 DRS-D
 
  By: Rogers, Shine, King of Hemphill H.B. No. 4004
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a study by Texas A&M University of the appraisal of
  agricultural land for ad valorem tax purposes.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  STUDY ON TAX APPRAISAL OF AGRICULTURAL LAND. (a)
  The president of Texas A&M University shall designate a department
  or entity at the university to conduct a study of the methods and
  procedures for appraising agricultural land for ad valorem tax
  purposes.
         (b)  The study must consider the feasibility and effect of:
               (1)  authorizing the comptroller of public accounts to
  accept actual agricultural production data, including data
  regarding expenses and income from production of crops and
  livestock, from an appraisal district in developing rules for the
  appraisal of agricultural land for ad valorem tax purposes;
               (2)  determining net to land value by averaging the
  annual net income that a class of land would likely generate over a
  10-year period;
               (3)  requiring all of the production expenses incurred
  by a property owner and a tenant, regardless of whether the expenses
  are shared expenses between the property owner and the tenant, to be
  considered when appraising agricultural land;
               (4)  requiring a person appraising agricultural land
  for taxation to have knowledge and experience in agricultural land
  valuation; and
               (5)  requiring each appraisal review board to have
  equal membership from rural and non-rural areas.
         SECTION 2.  REPORT. Not later than January 1, 2023, Texas
  A&M University shall submit a report on the results of the study to
  the lieutenant governor, the speaker of the house of
  representatives, and each standing committee of the legislature
  with jurisdiction over agricultural matters.
         SECTION 3.  EXPIRATION. This Act expires September 1, 2023.
         SECTION 4.  EFFECTIVE DATE.  This Act takes effect
  immediately if it receives a vote of two-thirds of all the members
  elected to each house, as provided by Section 39, Article III, Texas
  Constitution.  If this Act does not receive the vote necessary for
  immediate effect, this Act takes effect September 1, 2021.