Texas Senate Bill SB701

Texas 2019 - 86th Regular

Caption

Relating to the qualification of land for appraisal for ad valorem tax purposes as timber land or restricted-use timber land.

Impact

This bill is significant in its potential to affect local taxation policies and support the forestry industry by allowing landowners to continue benefiting from reduced property taxes while engaging in dual-use of their land. By maintaining the eligibility for appraisal, it protects the interests of timber land owners against punitive tax repercussions that may arise from the introduction of oil and gas operations. The adjustments could lead to a more favorable economic situation for those in the timber business, promoting continued investment in land dedicated to timber production.

Summary

SB701 seeks to amend the Tax Code of Texas regarding the appraisal of land used as timber land or restricted-use timber land for ad valorem tax purposes. It specifically aims to clarify the criteria under which land qualifies for such appraisal. The bill introduces provisions that would ensure land used partially for timber production maintains its qualification for lower tax rates, even when other activities, such as oil and gas extraction, occur on the same parcel. Such a modification intends to protect landowners involved in forestry from losing their tax benefits due to additional land use activities.

Contention

One notable point of contention surrounding SB701 is its implications for local governance and land management practices. Critics may argue that allowing oil and gas operations on previously timber-designated land without losing appraisal benefits might encourage practices that could detrimentally impact forestry resources. Furthermore, the bill's provision to not consider certain land uses in appraisal decisions could lead to debates on land rights and how land is utilized within communities, sparking concerns over potential environmental repercussions.