88R10599 CJC-F
 
  By: Guillen H.B. No. 2397
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the eligibility of certain property to continue to
  qualify for an ad valorem tax exemption or special appraisal
  following certain changes in ownership.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 11.43, Tax Code, is amended by adding
  Subsection (c-1) to read as follows:
         (c-1)  For purposes of Subsection (c), ownership of the
  property is not considered to have changed if ownership of the
  property is transferred from the former owner to the surviving
  spouse or a surviving child of the former owner.
         SECTION 2.  Section 23.54, Tax Code, is amended by adding
  Subsection (e-1) to read as follows:
         (e-1)  For purposes of Subsection (e), the ownership of land
  that was appraised under this subchapter in the preceding tax year
  is not considered to have changed if, after the ownership of the
  land is transferred from the former owner to the new owner:
               (1)  the new owner uses the land in materially the same
  way as the former owner used the land during the preceding tax year;
  and
               (2)  the use described by Subdivision (1) is overseen
  or conducted by the same individuals who oversaw or conducted that
  use during the preceding tax year.
         SECTION 3.  Section 23.541, Tax Code, is amended by adding
  Subsection (a-1) and amending Subsection (b) to read as follows:
         (a-1)  Notwithstanding Subsection (a), the chief appraiser
  shall accept and approve or deny an application for appraisal under
  this subchapter after the deadline for filing the application has
  passed if:
               (1)  the land that is the subject of the application was
  appraised under this subchapter in the preceding tax year;
               (2)  the new owner uses the land in materially the same
  way as the former owner used the land during the preceding tax year;
  and
               (3)  the application is filed not later than the first
  anniversary of the date ownership of the land was transferred from
  the former owner to the new owner.
         (b)  If appraisal under this subchapter is approved when the
  application is filed late, the owner is liable for a penalty of 10
  percent of the difference between the amount of tax imposed on the
  property and the amount that would be imposed if the property were
  taxed at market value. The penalty prescribed by this subsection
  does not apply to a late application filed under Subsection (a-1).
         SECTION 4.  This Act takes effect January 1, 2024.