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A BILL TO BE ENTITLED
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AN ACT
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relating to the eligibility of certain land for appraisal for ad |
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valorem tax purposes on the basis of its productivity value and the |
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consequences for those purposes of a change of use or sale of the |
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land. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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ARTICLE 1. REPEAL OF CERTAIN ELIGIBILITY AND ADDITIONAL TAX |
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PROVISIONS IN SUBCHAPTERS C AND D, CHAPTER 23, TAX CODE |
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SECTION 1.01. Section 1.07(d), Tax Code, is amended to read |
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as follows: |
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(d) A notice required by Section 11.43(q), 11.45(d), |
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23.44(d), [23.46(c) or (f),] 23.54(e), 23.541(c), [23.55(e),] |
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23.551(a), 23.57(d), 23.76(e), 23.79(d), or 23.85(d) must be sent |
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by certified mail. |
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SECTION 1.02. Section 23.20(g), Tax Code, is amended to |
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read as follows: |
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(g) A waiver of a special appraisal of property under |
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Subchapter [C, D,] E, F, or G [of this chapter] does not constitute |
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a change of use of the property or diversion of the property to |
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another use for purposes of the imposition of additional taxes |
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under any of those subchapters. |
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SECTION 1.03. Section 23.42(a), Tax Code, is amended to |
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read as follows: |
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(a) An individual is entitled to have land the individual |
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[he] owns designated for agricultural use if, on January 1: |
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(1) [the land has been devoted exclusively to or |
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developed continuously for agriculture for the three years |
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preceding the current year; |
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[(2)] the individual is using and intends to use the |
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land for agriculture as an occupation or a business venture for |
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profit during the current year; and |
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(2) [(3)] agriculture is the individual's primary |
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occupation and primary source of income. |
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SECTION 1.04. Sections 23.51(1) and (7), Tax Code, are |
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amended to read as follows: |
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(1) "Qualified open-space land" means land that is |
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[currently] devoted principally to agricultural use to the degree |
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of intensity generally accepted in the area [and that has been |
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devoted principally to agricultural use or to production of timber |
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or forest products for five of the preceding seven years] or land |
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that is used principally as an ecological laboratory by a public or |
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private college or university [and that has been used principally |
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in that manner by a college or university for five of the preceding |
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seven years]. Qualified open-space land includes all appurtenances |
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to the land. For the purposes of this subdivision, appurtenances to |
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the land means private roads, dams, reservoirs, water wells, |
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canals, ditches, terraces, and other reshapings of the soil, |
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fences, and riparian water rights. [Notwithstanding the other |
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provisions of this subdivision, land that is currently devoted |
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principally to wildlife management as defined by Subdivision (7)(B) |
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or (C) to the degree of intensity generally accepted in the area |
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qualifies for appraisal as qualified open-space land under this |
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subchapter regardless of the manner in which the land was used in |
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any preceding year.] |
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(7) "Wildlife management" means: |
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(A) actively using land in a manner that meets |
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the standards developed under Section 23.521 [that at the time the |
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wildlife-management use began was appraised as qualified |
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open-space land under this subchapter or as qualified timber land |
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under Subchapter E] in at least three of the following ways to |
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propagate a sustaining breeding, migrating, or wintering |
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population of indigenous wild animals for human use, including |
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food, medicine, or recreation: |
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(i) habitat control; |
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(ii) erosion control; |
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(iii) predator control; |
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(iv) providing supplemental supplies of |
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water; |
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(v) providing supplemental supplies of |
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food; |
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(vi) providing shelters; and |
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(vii) making of census counts to determine |
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population; |
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(B) actively using land to protect federally |
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listed endangered species under a federal permit if the land is: |
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(i) included in a habitat preserve and is |
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subject to a conservation easement created under Chapter 183, |
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Natural Resources Code; or |
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(ii) part of a conservation development |
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under a federally approved habitat conservation plan that restricts |
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the use of the land to protect federally listed endangered species; |
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or |
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(C) actively using land for a conservation or |
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restoration project to provide compensation for natural resource |
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damages pursuant to the Comprehensive Environmental Response, |
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Compensation, and Liability Act of 1980 (42 U.S.C. Section 9601 et |
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seq.), the Oil Pollution Act of 1990 (33 U.S.C. Section 2701 et |
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seq.), the Federal Water Pollution Control Act (33 U.S.C. Section |
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1251 et seq.), or Chapter 40, Natural Resources Code. |
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SECTION 1.05. Sections 23.52(e) and (g), Tax Code, are |
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amended to read as follows: |
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(e) The [For the purposes of Section 23.55 of this code, |
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the] chief appraiser [also] shall determine the market value of |
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qualified open-space land and shall record both the market value |
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and the appraised value in the appraisal records. |
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(g) The category of land that qualifies under Section |
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23.51(7) is the native pasture category [of the land under this |
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subchapter or Subchapter E, as applicable, before the |
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wildlife-management use began]. |
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SECTION 1.06. Section 23.524(e), Tax Code, is amended to |
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read as follows: |
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(e) Notwithstanding Subsection (b) or (c), the eligibility |
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of [For the purposes of this subchapter, a change of use of the] |
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land subject to this section for appraisal under this subchapter is |
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considered to have ended [occurred] on the day the period |
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prescribed by Subsection (c) begins if the owner has not fully |
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complied with the terms of the agreement described by Subsection |
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(b) on the date the agreement ends. |
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SECTION 1.07. Sections 23.551(a) and (d), Tax Code, are |
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amended to read as follows: |
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(a) If land appraised as provided by this subchapter is |
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owned by an individual 65 years of age or older, before making a |
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determination that [a change in use of] the land is no longer |
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eligible for appraisal under this subchapter [has occurred], the |
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chief appraiser shall deliver a written notice to the owner stating |
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that the chief appraiser believes [a change in use of] the land may |
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no longer be eligible for appraisal under this subchapter [have |
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occurred]. |
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(d) If the chief appraiser does not receive a response on or |
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before the 60th day after the date the notice is mailed, the chief |
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appraiser must make a reasonable effort to locate the owner and |
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determine whether the land remains eligible to be appraised as |
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provided by this subchapter before determining that [a change in |
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use of] the land is no longer eligible for appraisal under this |
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subchapter [has occurred]. |
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SECTION 1.08. Section 31.01(c), Tax Code, is amended to |
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read as follows: |
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(c) The tax bill or a separate statement accompanying the |
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tax bill shall: |
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(1) identify the property subject to the tax; |
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(2) state the appraised value, assessed value, and |
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taxable value of the property; |
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(3) if the property is land appraised as provided by |
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Subchapter [C, D,] E[,] or H, Chapter 23, state the market value and |
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the taxable value for purposes of deferred or additional taxation |
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as provided by Section [23.46, 23.55,] 23.76[,] or 23.9807, as |
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applicable; |
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(4) state the assessment ratio for the taxing unit; |
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(5) state the type and amount of any partial exemption |
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applicable to the property, indicating whether it applies to |
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appraised or assessed value; |
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(6) state the total tax rate for the taxing unit; |
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(7) state the amount of tax due, the due date, and the |
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delinquency date; |
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(8) explain the payment option and discounts provided |
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by Sections 31.03 and 31.05, if available to the taxing unit's |
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taxpayers, and state the date on which each of the discount periods |
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provided by Section 31.05 concludes, if the discounts are |
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available; |
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(9) state the rates of penalty and interest imposed |
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for delinquent payment of the tax; |
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(10) include the name and telephone number of the |
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assessor for the taxing unit and, if different, of the collector for |
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the taxing unit; |
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(11) for real property, state for the current tax year |
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and each of the preceding five tax years: |
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(A) the appraised value and taxable value of the |
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property; |
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(B) the total tax rate for the taxing unit; |
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(C) the amount of taxes imposed on the property |
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by the taxing unit; and |
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(D) the difference, expressed as a percent |
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increase or decrease, as applicable, in the amount of taxes imposed |
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on the property by the taxing unit compared to the amount imposed |
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for the preceding tax year; and |
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(12) for real property, state the differences, |
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expressed as a percent increase or decrease, as applicable, in the |
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following for the current tax year as compared to the fifth tax year |
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before that tax year: |
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(A) the appraised value and taxable value of the |
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property; |
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(B) the total tax rate for the taxing unit; and |
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(C) the amount of taxes imposed on the property |
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by the taxing unit. |
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SECTION 1.09. Section 41.41(a), Tax Code, as effective |
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until January 1, 2027, is amended to read as follows: |
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(a) A property owner is entitled to protest before the |
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appraisal review board the following actions: |
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(1) determination of the appraised value of the |
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owner's property or, in the case of land appraised as provided by |
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Subchapter C, D, E, or H, Chapter 23, determination of its appraised |
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or market value; |
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(2) unequal appraisal of the owner's property; |
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(3) inclusion of the owner's property on the appraisal |
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records; |
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(4) denial to the property owner in whole or in part of |
|
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a partial exemption; |
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(4-a) determination that the owner's property does not |
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qualify for the circuit breaker limitation on appraised value |
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provided by Section 23.231; |
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(5) determination that the owner's land does not |
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qualify for appraisal as provided by Subchapter C, D, E, or H, |
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Chapter 23; |
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(6) identification of the taxing units in which the |
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owner's property is taxable in the case of the appraisal district's |
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appraisal roll; |
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(7) determination that the property owner is the owner |
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of property; |
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(8) a determination that a change in use of land |
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appraised under Subchapter [C, D,] E[,] or H, Chapter 23, has |
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occurred; or |
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(9) any other action of the chief appraiser, appraisal |
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district, or appraisal review board that applies to and adversely |
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affects the property owner. |
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SECTION 1.10. Section 41.41(a), Tax Code, as effective |
|
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January 1, 2027, is amended to read as follows: |
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(a) A property owner is entitled to protest before the |
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appraisal review board the following actions: |
|
|
(1) determination of the appraised value of the |
|
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owner's property or, in the case of land appraised as provided by |
|
|
Subchapter C, D, E, or H, Chapter 23, determination of its appraised |
|
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or market value; |
|
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(2) unequal appraisal of the owner's property; |
|
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(3) inclusion of the owner's property on the appraisal |
|
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records; |
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(4) denial to the property owner in whole or in part of |
|
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a partial exemption; |
|
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(5) determination that the owner's land does not |
|
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qualify for appraisal as provided by Subchapter C, D, E, or H, |
|
|
Chapter 23; |
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(6) identification of the taxing units in which the |
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owner's property is taxable in the case of the appraisal district's |
|
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appraisal roll; |
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(7) determination that the property owner is the owner |
|
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of property; |
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(8) a determination that a change in use of land |
|
|
appraised under Subchapter [C, D,] E[,] or H, Chapter 23, has |
|
|
occurred; or |
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(9) any other action of the chief appraiser, appraisal |
|
|
district, or appraisal review board that applies to and adversely |
|
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affects the property owner. |
|
|
SECTION 1.11. Section 41.44(a), Tax Code, is amended to |
|
|
read as follows: |
|
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(a) Except as provided by Subsections (b), (c), (c-1), and |
|
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(c-2), to be entitled to a hearing and determination of a protest, |
|
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the property owner initiating the protest must file a written |
|
|
notice of the protest with the appraisal review board having |
|
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authority to hear the matter protested: |
|
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(1) not later than May 15 or the 30th day after the |
|
|
date that notice to the property owner was delivered to the property |
|
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owner as provided by Section 25.19, whichever is later; |
|
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(2) in the case of a protest of a change in the |
|
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appraisal records ordered as provided by Subchapter A of this |
|
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chapter or by Chapter 25, not later than the 30th day after the date |
|
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notice of the change is delivered to the property owner; |
|
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(3) in the case of a determination that a change in the |
|
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use of land appraised under Subchapter [C, D,] E[,] or H, Chapter |
|
|
23, has occurred, not later than the 30th day after the date the |
|
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notice of the determination is delivered to the property owner; |
|
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(4) in the case of a determination of eligibility for a |
|
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refund under Section 23.1243, not later than the 30th day after the |
|
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date the notice of the determination is delivered to the property |
|
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owner; or |
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(5) in the case of a protest of the modification or |
|
|
denial of an application for an exemption under Section 11.35, or |
|
|
the determination of an appropriate damage assessment rating for an |
|
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item of qualified property under that section, not later than the |
|
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30th day after the date the property owner receives the notice |
|
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required under Section 11.45(e). |
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|
SECTION 1.12. Section 60.022, Agriculture Code, is amended |
|
|
to read as follows: |
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|
Sec. 60.022. CONTENTS OF PETITION. A petition filed under |
|
|
Section 60.021 must: |
|
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(1) describe the boundaries of the proposed district |
|
|
by metes and bounds or by lot and block number, if there is a |
|
|
recorded map or plat and survey of the area; |
|
|
(2) include a name for the proposed district, which |
|
|
must include the term "Agricultural Development District"; |
|
|
(3) be signed by the landowners of any land to be |
|
|
included within the proposed district and provide an acknowledgment |
|
|
consistent with Section 121.001, Civil Practice and Remedies Code, |
|
|
that the landowners desire the land to be included in the district; |
|
|
(4) include the names of at least five persons who are |
|
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willing and qualified to serve as temporary directors of the |
|
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district; |
|
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(5) name each county in which any agricultural |
|
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facilities to be owned by the district are to be located; |
|
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(6) name each municipality in which any part of the |
|
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district is to be located; |
|
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(7) state the general nature of the proposed |
|
|
development and the cost of the development as then estimated by the |
|
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petitioners; |
|
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(8) state the necessity and feasibility of the |
|
|
proposed district and whether the district will serve the public |
|
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purpose of furthering agricultural interests; |
|
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(9) include a pledge that the district will make |
|
|
payments in lieu of taxes to any school district and county in which |
|
|
any real property to be owned by the district is located, in [as |
|
|
follows: |
|
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[(A)] annual payments to each entity that are |
|
|
equal to the amount of taxes imposed on the real property by the |
|
|
entity in the year of the district's creation; and |
|
|
[(B) a payment to each entity equal to the amount |
|
|
that would be due under Section 23.55, Tax Code, on the district's |
|
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date of creation; and] |
|
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(10) include a pledge that, if the district employs |
|
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more than 50 persons, the district will make payments in lieu of |
|
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taxes to any school district, in addition to those made under |
|
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Subdivision (9), in an amount negotiated between the district and |
|
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the school district. |
|
|
SECTION 1.13. Section 21.0421(e), Property Code, is amended |
|
|
to read as follows: |
|
|
(e) This section does not[: |
|
|
[(1)] authorize groundwater rights appraised |
|
|
separately from the real property under this section to be |
|
|
appraised separately from real property for property tax appraisal |
|
|
purposes[; or |
|
|
[(2) subject real property condemned for the purpose |
|
|
described by Subsection (a) to an additional tax as provided by |
|
|
Section 23.46 or 23.55, Tax Code]. |
|
|
SECTION 1.14. Subsection (a), Section 23.46, Tax Code, is |
|
|
transferred to Section 23.41, Tax Code, and redesignated as |
|
|
Subsection (c), Section 23.41, Tax Code, to read as follows: |
|
|
(c) [(a)] When appraising land designated for agricultural |
|
|
use, the chief appraiser also shall appraise the land at its market |
|
|
value and shall record both the market value and the value based on |
|
|
its capacity to produce agricultural products in the appraisal |
|
|
records. |
|
|
SECTION 1.15. The following provisions of the Tax Code are |
|
|
repealed: |
|
|
(1) the heading to Section 23.46; |
|
|
(2) Sections 23.46(b), (c), (d), (e), (e-1), (f), and |
|
|
(g); |
|
|
(3) Sections 23.47(c) and (d); |
|
|
(4) Section 23.55; and |
|
|
(5) Sections 23.58(c) and (d). |
|
|
SECTION 1.16. (a) Sections 23.42(a), 23.51(1) and (7), and |
|
|
23.52(g), 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) The repeal of Sections 23.46 and 23.55, Tax Code, by |
|
|
this Act does not affect an additional tax imposed as a result of a |
|
|
change of use or sale of land appraised under Subchapter C or D, |
|
|
Chapter 23, Tax Code, that occurred before the effective date of |
|
|
this Act, and the former law is continued in effect for purposes of |
|
|
that tax. |
|
|
ARTICLE 2. REPEAL OF CERTAIN ELIGIBILITY AND ADDITIONAL TAX |
|
|
PROVISIONS IN SUBCHAPTER D, CHAPTER 23, TAX CODE |
|
|
SECTION 2.01. Section 1.07(d), Tax Code, is amended to read |
|
|
as follows: |
|
|
(d) A notice required by Section 11.43(q), 11.45(d), |
|
|
23.44(d), 23.46(c) or (f), 23.54(e), 23.541(c), [23.55(e),] |
|
|
23.551(a), 23.57(d), 23.76(e), 23.79(d), or 23.85(d) must be sent |
|
|
by certified mail. |
|
|
SECTION 2.02. Section 23.20(g), Tax Code, is amended to |
|
|
read as follows: |
|
|
(g) A waiver of a special appraisal of property under |
|
|
Subchapter C, [D,] E, F, or G [of this chapter] does not constitute |
|
|
a change of use of the property or diversion of the property to |
|
|
another use for purposes of the imposition of additional taxes |
|
|
under any of those subchapters. |
|
|
SECTION 2.03. Sections 23.51(1) and (7), Tax Code, are |
|
|
amended to read as follows: |
|
|
(1) "Qualified open-space land" means land that is |
|
|
[currently] devoted principally to agricultural use to the degree |
|
|
of intensity generally accepted in the area [and that has been |
|
|
devoted principally to agricultural use or to production of timber |
|
|
or forest products for five of the preceding seven years] or land |
|
|
that is used principally as an ecological laboratory by a public or |
|
|
private college or university [and that has been used principally |
|
|
in that manner by a college or university for five of the preceding |
|
|
seven years]. Qualified open-space land includes all appurtenances |
|
|
to the land. For the purposes of this subdivision, appurtenances to |
|
|
the land means private roads, dams, reservoirs, water wells, |
|
|
canals, ditches, terraces, and other reshapings of the soil, |
|
|
fences, and riparian water rights. [Notwithstanding the other |
|
|
provisions of this subdivision, land that is currently devoted |
|
|
principally to wildlife management as defined by Subdivision (7)(B) |
|
|
or (C) to the degree of intensity generally accepted in the area |
|
|
qualifies for appraisal as qualified open-space land under this |
|
|
subchapter regardless of the manner in which the land was used in |
|
|
any preceding year.] |
|
|
(7) "Wildlife management" means: |
|
|
(A) actively using land in a manner that meets |
|
|
the standards developed under Section 23.521 [that at the time the |
|
|
wildlife-management use began was appraised as qualified |
|
|
open-space land under this subchapter or as qualified timber land |
|
|
under Subchapter E] in at least three of the following ways to |
|
|
propagate a sustaining breeding, migrating, or wintering |
|
|
population of indigenous wild animals for human use, including |
|
|
food, medicine, or recreation: |
|
|
(i) habitat control; |
|
|
(ii) erosion control; |
|
|
(iii) predator control; |
|
|
(iv) providing supplemental supplies of |
|
|
water; |
|
|
(v) providing supplemental supplies of |
|
|
food; |
|
|
(vi) providing shelters; and |
|
|
(vii) making of census counts to determine |
|
|
population; |
|
|
(B) actively using land to protect federally |
|
|
listed endangered species under a federal permit if the land is: |
|
|
(i) included in a habitat preserve and is |
|
|
subject to a conservation easement created under Chapter 183, |
|
|
Natural Resources Code; or |
|
|
(ii) part of a conservation development |
|
|
under a federally approved habitat conservation plan that restricts |
|
|
the use of the land to protect federally listed endangered species; |
|
|
or |
|
|
(C) actively using land for a conservation or |
|
|
restoration project to provide compensation for natural resource |
|
|
damages pursuant to the Comprehensive Environmental Response, |
|
|
Compensation, and Liability Act of 1980 (42 U.S.C. Section 9601 et |
|
|
seq.), the Oil Pollution Act of 1990 (33 U.S.C. Section 2701 et |
|
|
seq.), the Federal Water Pollution Control Act (33 U.S.C. Section |
|
|
1251 et seq.), or Chapter 40, Natural Resources Code. |
|
|
SECTION 2.04. Sections 23.52(e) and (g), Tax Code, are |
|
|
amended to read as follows: |
|
|
(e) The [For the purposes of Section 23.55 of this code, |
|
|
the] chief appraiser [also] shall determine the market value of |
|
|
qualified open-space land and shall record both the market value |
|
|
and the appraised value in the appraisal records. |
|
|
(g) The category of land that qualifies under Section |
|
|
23.51(7) is the native pasture category [of the land under this |
|
|
subchapter or Subchapter E, as applicable, before the |
|
|
wildlife-management use began]. |
|
|
SECTION 2.05. Section 23.524(e), Tax Code, is amended to |
|
|
read as follows: |
|
|
(e) Notwithstanding Subsection (b) or (c), the eligibility |
|
|
of [For the purposes of this subchapter, a change of use of the] |
|
|
land subject to this section for appraisal under this subchapter is |
|
|
considered to have ended [occurred] on the day the period |
|
|
prescribed by Subsection (c) begins if the owner has not fully |
|
|
complied with the terms of the agreement described by Subsection |
|
|
(b) on the date the agreement ends. |
|
|
SECTION 2.06. Sections 23.551(a) and (d), Tax Code, are |
|
|
amended to read as follows: |
|
|
(a) If land appraised as provided by this subchapter is |
|
|
owned by an individual 65 years of age or older, before making a |
|
|
determination that [a change in use of] the land is no longer |
|
|
eligible for appraisal under this subchapter [has occurred], the |
|
|
chief appraiser shall deliver a written notice to the owner stating |
|
|
that the chief appraiser believes [a change in use of] the land may |
|
|
no longer be eligible for appraisal under this subchapter [have |
|
|
occurred]. |
|
|
(d) If the chief appraiser does not receive a response on or |
|
|
before the 60th day after the date the notice is mailed, the chief |
|
|
appraiser must make a reasonable effort to locate the owner and |
|
|
determine whether the land remains eligible to be appraised as |
|
|
provided by this subchapter before determining that [a change in |
|
|
use of] the land is no longer eligible for appraisal under this |
|
|
subchapter [has occurred]. |
|
|
SECTION 2.07. Sections 31.01(c) and (c-1), Tax Code, are |
|
|
amended to read as follows: |
|
|
(c) The tax bill or a separate statement accompanying the |
|
|
tax bill shall: |
|
|
(1) identify the property subject to the tax; |
|
|
(2) state the appraised value, assessed value, and |
|
|
taxable value of the property; |
|
|
(3) if the property is land appraised as provided by |
|
|
Subchapter C, [D,] E, or H, Chapter 23, state the market value and |
|
|
the taxable value for purposes of deferred or additional taxation |
|
|
as provided by Section 23.46, [23.55,] 23.76, or 23.9807, as |
|
|
applicable; |
|
|
(4) if the property is land appraised as provided by |
|
|
Subchapter D, Chapter 23, state the market value of the land; |
|
|
(5) state the assessment ratio for the taxing unit; |
|
|
(6) [(5)] state the type and amount of any partial |
|
|
exemption applicable to the property, indicating whether it applies |
|
|
to appraised or assessed value; |
|
|
(7) [(6)] state the total tax rate for the taxing |
|
|
unit; |
|
|
(8) [(7)] state the amount of tax due, the due date, |
|
|
and the delinquency date; |
|
|
(9) [(8)] explain the payment option and discounts |
|
|
provided by Sections 31.03 and 31.05, if available to the taxing |
|
|
unit's taxpayers, and state the date on which each of the discount |
|
|
periods provided by Section 31.05 concludes, if the discounts are |
|
|
available; |
|
|
(10) [(9)] state the rates of penalty and interest |
|
|
imposed for delinquent payment of the tax; |
|
|
(11) [(10)] include the name and telephone number of |
|
|
the assessor for the taxing unit and, if different, of the collector |
|
|
for the taxing unit; |
|
|
(12) [(11)] for real property, state for the current |
|
|
tax year and each of the preceding five tax years: |
|
|
(A) the appraised value and taxable value of the |
|
|
property; |
|
|
(B) the total tax rate for the taxing unit; |
|
|
(C) the amount of taxes imposed on the property |
|
|
by the taxing unit; and |
|
|
(D) the difference, expressed as a percent |
|
|
increase or decrease, as applicable, in the amount of taxes imposed |
|
|
on the property by the taxing unit compared to the amount imposed |
|
|
for the preceding tax year; and |
|
|
(13) [(12)] for real property, state the differences, |
|
|
expressed as a percent increase or decrease, as applicable, in the |
|
|
following for the current tax year as compared to the fifth tax year |
|
|
before that tax year: |
|
|
(A) the appraised value and taxable value of the |
|
|
property; |
|
|
(B) the total tax rate for the taxing unit; and |
|
|
(C) the amount of taxes imposed on the property |
|
|
by the taxing unit. |
|
|
(c-1) If for any of the preceding six tax years any |
|
|
information required by Subsection (c)(12) [(c)(11)] or (13) [(12)] |
|
|
to be included in a tax bill or separate statement is unavailable, |
|
|
the tax bill or statement must state that the information is not |
|
|
available for that year. |
|
|
SECTION 2.08. Section 41.41(a), Tax Code, as effective |
|
|
until January 1, 2027, is amended to read as follows: |
|
|
(a) A property owner is entitled to protest before the |
|
|
appraisal review board the following actions: |
|
|
(1) determination of the appraised value of the |
|
|
owner's property or, in the case of land appraised as provided by |
|
|
Subchapter C, D, E, or H, Chapter 23, determination of its appraised |
|
|
or market value; |
|
|
(2) unequal appraisal of the owner's property; |
|
|
(3) inclusion of the owner's property on the appraisal |
|
|
records; |
|
|
(4) denial to the property owner in whole or in part of |
|
|
a partial exemption; |
|
|
(4-a) determination that the owner's property does not |
|
|
qualify for the circuit breaker limitation on appraised value |
|
|
provided by Section 23.231; |
|
|
(5) determination that the owner's land does not |
|
|
qualify for appraisal as provided by Subchapter C, D, E, or H, |
|
|
Chapter 23; |
|
|
(6) identification of the taxing units in which the |
|
|
owner's property is taxable in the case of the appraisal district's |
|
|
appraisal roll; |
|
|
(7) determination that the property owner is the owner |
|
|
of property; |
|
|
(8) a determination that a change in use of land |
|
|
appraised under Subchapter C, [D,] E, or H, Chapter 23, has |
|
|
occurred; or |
|
|
(9) any other action of the chief appraiser, appraisal |
|
|
district, or appraisal review board that applies to and adversely |
|
|
affects the property owner. |
|
|
SECTION 2.09. Section 41.41(a), Tax Code, as effective |
|
|
January 1, 2027, is amended to read as follows: |
|
|
(a) A property owner is entitled to protest before the |
|
|
appraisal review board the following actions: |
|
|
(1) determination of the appraised value of the |
|
|
owner's property or, in the case of land appraised as provided by |
|
|
Subchapter C, D, E, or H, Chapter 23, determination of its appraised |
|
|
or market value; |
|
|
(2) unequal appraisal of the owner's property; |
|
|
(3) inclusion of the owner's property on the appraisal |
|
|
records; |
|
|
(4) denial to the property owner in whole or in part of |
|
|
a partial exemption; |
|
|
(5) determination that the owner's land does not |
|
|
qualify for appraisal as provided by Subchapter C, D, E, or H, |
|
|
Chapter 23; |
|
|
(6) identification of the taxing units in which the |
|
|
owner's property is taxable in the case of the appraisal district's |
|
|
appraisal roll; |
|
|
(7) determination that the property owner is the owner |
|
|
of property; |
|
|
(8) a determination that a change in use of land |
|
|
appraised under Subchapter C, [D,] E, or H, Chapter 23, has |
|
|
occurred; or |
|
|
(9) any other action of the chief appraiser, appraisal |
|
|
district, or appraisal review board that applies to and adversely |
|
|
affects the property owner. |
|
|
SECTION 2.10. Section 41.44(a), Tax Code, is amended to |
|
|
read as follows: |
|
|
(a) Except as provided by Subsections (b), (c), (c-1), and |
|
|
(c-2), to be entitled to a hearing and determination of a protest, |
|
|
the property owner initiating the protest must file a written |
|
|
notice of the protest with the appraisal review board having |
|
|
authority to hear the matter protested: |
|
|
(1) not later than May 15 or the 30th day after the |
|
|
date that notice to the property owner was delivered to the property |
|
|
owner as provided by Section 25.19, whichever is later; |
|
|
(2) in the case of a protest of a change in the |
|
|
appraisal records ordered as provided by Subchapter A of this |
|
|
chapter or by Chapter 25, not later than the 30th day after the date |
|
|
notice of the change is delivered to the property owner; |
|
|
(3) in the case of a determination that a change in the |
|
|
use of land appraised under Subchapter C, [D,] E, or H, Chapter 23, |
|
|
has occurred, not later than the 30th day after the date the notice |
|
|
of the determination is delivered to the property owner; |
|
|
(4) in the case of a determination of eligibility for a |
|
|
refund under Section 23.1243, not later than the 30th day after the |
|
|
date the notice of the determination is delivered to the property |
|
|
owner; or |
|
|
(5) in the case of a protest of the modification or |
|
|
denial of an application for an exemption under Section 11.35, or |
|
|
the determination of an appropriate damage assessment rating for an |
|
|
item of qualified property under that section, not later than the |
|
|
30th day after the date the property owner receives the notice |
|
|
required under Section 11.45(e). |
|
|
SECTION 2.11. Section 60.022, Agriculture Code, is amended |
|
|
to read as follows: |
|
|
Sec. 60.022. CONTENTS OF PETITION. A petition filed under |
|
|
Section 60.021 must: |
|
|
(1) describe the boundaries of the proposed district |
|
|
by metes and bounds or by lot and block number, if there is a |
|
|
recorded map or plat and survey of the area; |
|
|
(2) include a name for the proposed district, which |
|
|
must include the term "Agricultural Development District"; |
|
|
(3) be signed by the landowners of any land to be |
|
|
included within the proposed district and provide an acknowledgment |
|
|
consistent with Section 121.001, Civil Practice and Remedies Code, |
|
|
that the landowners desire the land to be included in the district; |
|
|
(4) include the names of at least five persons who are |
|
|
willing and qualified to serve as temporary directors of the |
|
|
district; |
|
|
(5) name each county in which any agricultural |
|
|
facilities to be owned by the district are to be located; |
|
|
(6) name each municipality in which any part of the |
|
|
district is to be located; |
|
|
(7) state the general nature of the proposed |
|
|
development and the cost of the development as then estimated by the |
|
|
petitioners; |
|
|
(8) state the necessity and feasibility of the |
|
|
proposed district and whether the district will serve the public |
|
|
purpose of furthering agricultural interests; |
|
|
(9) include a pledge that the district will make |
|
|
payments in lieu of taxes to any school district and county in which |
|
|
any real property to be owned by the district is located, in [as |
|
|
follows: |
|
|
[(A)] annual payments to each entity that are |
|
|
equal to the amount of taxes imposed on the real property by the |
|
|
entity in the year of the district's creation; and |
|
|
[(B) a payment to each entity equal to the amount |
|
|
that would be due under Section 23.55, Tax Code, on the district's |
|
|
date of creation; and] |
|
|
(10) include a pledge that, if the district employs |
|
|
more than 50 persons, the district will make payments in lieu of |
|
|
taxes to any school district, in addition to those made under |
|
|
Subdivision (9), in an amount negotiated between the district and |
|
|
the school district. |
|
|
SECTION 2.12. Section 21.0421(e), Property Code, is amended |
|
|
to read as follows: |
|
|
(e) This section does not: |
|
|
(1) authorize groundwater rights appraised separately |
|
|
from the real property under this section to be appraised |
|
|
separately from real property for property tax appraisal purposes; |
|
|
or |
|
|
(2) subject real property condemned for the purpose |
|
|
described by Subsection (a) to an additional tax as provided by |
|
|
Section 23.46 [or 23.55], Tax Code. |
|
|
SECTION 2.13. The following provisions of the Tax Code are |
|
|
repealed: |
|
|
(1) Section 23.55; and |
|
|
(2) Sections 23.58(c) and (d). |
|
|
SECTION 2.14. (a) Sections 23.51(1) and (7) and 23.52(g), |
|
|
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) The repeal of Section 23.55, Tax Code, by this Act does |
|
|
not affect an additional tax imposed as a result of a change of use |
|
|
of land appraised under Subchapter D, Chapter 23, Tax Code, that |
|
|
occurred before the effective date of this Act, and the former law |
|
|
is continued in effect for purposes of that tax. |
|
|
ARTICLE 3. EFFECTIVE DATE |
|
|
SECTION 3.01. (a) Except as otherwise provided by this |
|
|
section, this Act takes effect January 1, 2026. |
|
|
(b) Article 1 of this Act takes effect only if the |
|
|
constitutional amendment proposed by the 89th Legislature, Regular |
|
|
Session, 2025, repealing the provisions that require that land be |
|
|
devoted to agricultural use for a specified period to be eligible |
|
|
for appraisal for ad valorem tax purposes on the basis of its |
|
|
productivity value and that subject land appraised on that basis to |
|
|
an additional tax when the land is diverted to a purpose other than |
|
|
agricultural use or sold is approved by the voters. If that |
|
|
amendment is not approved by the voters, Article 1 of this Act has |
|
|
no effect. |
|
|
(c) Article 2 of this Act takes effect only if Article 1 of |
|
|
this Act does not take effect. If Article 1 of this Act takes |
|
|
effect, Article 2 of this Act has no effect. |