Texas House Bill HB2996

Texas 2019 - 86th Regular

Caption

Relating to the eligibility of land located in a residential subdivision for appraisal for ad valorem tax purposes as qualified open-space land.

Impact

The passage of HB 2996 could have significant implications for landowners in Texas, particularly those in residential subdivisions who engage in agricultural activities or wildlife management. By allowing this land to be appraised as open-space land, it could provide financial relief through reduced property taxes. This change aims to recognize the agricultural and environmental contributions such lands can offer as opposed to treating them simply as developed residential properties.

Summary

House Bill 2996 seeks to amend the Tax Code regarding the appraisal eligibility of land located in residential subdivisions for ad valorem tax purposes as qualified open-space land. Under the proposed changes, residential land could be appraised as open-space if it meets specific criteria, namely that the city does not provide governmental services comparable to those in its other areas and that the land has been used principally for agricultural purposes or wildlife management for at least five years.

Contention

Notably, there may be points of contention surrounding this bill, particularly regarding the definition and assessment of what constitutes 'governmental and proprietary services'. Critics may argue that the bill could be exploited by property owners to qualify for tax breaks under dubious circumstances. Furthermore, there may be discussions around the impacts on local tax revenues, as allowing more land to be classified as open-space could reduce taxable property in certain municipalities.