Relating to the calculation of net to land in the appraisal of open-space land for ad valorem tax purposes.
Impact
The implementation of HB 2428 is expected to affect the appraisal practices of open-space lands in Texas. By defining 'net to land' more explicitly, local chief appraisers are given clearer guidance on calculating property taxes associated with these lands. The bill aims to ensure that the appraisal reflects the true agricultural viability and income potential of the land, which could lead to fairer tax assessments for landowners engaged in activities like farming, ranching, and recreation on open-space land.
Summary
House Bill 2428 aims to amend the calculation of 'net to land' for the appraisal of open-space land utilized for ad valorem tax purposes. The bill modifies the definition of 'net to land' to include average annual net income derived from land use over a five-year period, considering various income sources while allowing deductions for expenses related to agricultural activities. This change is intended to provide a more accurate representation of the economic yield from such lands, focusing on ordinary management practices by the landowners.
Sentiment
The sentiment surrounding HB 2428 appears to be generally positive among supporters, particularly from agricultural stakeholders and property owners. They believe that the bill will enhance the fairness of tax assessments by acknowledging the various income streams associated with open-space land. However, there may be concerns from those who worry about the broader implications for land valuation and local tax revenues, suggesting a need for careful implementation and oversight.
Contention
While there seems to be agreement on the need to refine the definition of 'net to land,' contention may arise regarding how the adjustments affect local tax revenues and the criteria for income calculations. Stakeholders might express differing views on whether the considerations for pest and disease impacts on income should be included, raising issues about the specificity of agricultural practices that might vary widely across regions. Additionally, the timing of the law's application starting in 2022 raises questions about its immediate effects on ongoing tax assessments.
Relating to the procedure for delivery by a chief appraiser of a form for reapplying for the appraisal of land for ad valorem tax purposes as agricultural or open-space land.
Relating to late applications for the appraisal of land for ad valorem tax purposes as qualified open-space land following the death of the owner of the land.