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A BILL TO BE ENTITLED
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AN ACT
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relating to the appraisal for ad valorem tax purposes of certain |
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land on the basis of the land's productivity value when a portion of |
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the land is taken for a right-of-way through an exercise of the |
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power of eminent domain. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 23, Tax Code, is amended by |
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adding Section 23.424 to read as follows: |
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Sec. 23.424. ELIGIBILITY OF LAND SUBJECT TO RIGHT-OF-WAY. |
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A designation of land for agricultural use under this subchapter |
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does not end if: |
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(1) a portion of the land is taken through the exercise |
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of the power of eminent domain for use as a right-of-way; and |
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(2) the portion of the land not taken through the |
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exercise of the power of eminent domain, regardless of the size of |
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that portion, otherwise qualifies for the designation. |
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SECTION 2. Section 23.46(e-1), Tax Code, is amended to read |
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as follows: |
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(e-1) A portion of a parcel of land is not diverted to |
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nonagricultural use for purposes of Subsection (c) because the |
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portion is subject to a right-of-way [that is less than 200 feet |
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wide and] that was taken by condemnation if the remainder of the |
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parcel of land qualifies for appraisal under this subchapter. |
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SECTION 3. Subchapter D, Chapter 23, Tax Code, is amended by |
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adding Section 23.527 to read as follows: |
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Sec. 23.527. QUALIFICATION OF LAND SUBJECT TO RIGHT-OF-WAY. |
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The eligibility of land for appraisal under this subchapter does |
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not end if: |
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(1) a portion of the land is taken through the exercise |
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of the power of eminent domain for use as a right-of-way; and |
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(2) the portion of the land not taken through the |
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exercise of the power of eminent domain, regardless of the size of |
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that portion, otherwise qualifies for appraisal under this |
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subchapter. |
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SECTION 4. The changes in law made by this Act apply only to |
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the appraisal of land for ad valorem tax purposes for an ad valorem |
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tax year that begins on or after the effective date of this Act. |
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SECTION 5. This Act takes effect January 1, 2026. |