Texas House Bill HB4148

Texas 2021 - 87th Regular

Caption

Relating to the repeal of the additional ad valorem taxes imposed as a result of certain changes in the use of certain land.

Impact

The impact of HB 4148 on state laws primarily involves the repeal of certain sections of the Tax Code that impose additional taxes on land when its designated use is altered. Specifically, sections regarding additional tax rates upon the sale or repurposing of agricultural land will be eliminated. This change is aimed at making the tax structure more favorable for landowners, particularly those over 65, who might otherwise face sudden tax increases due to changes in land use.

Summary

House Bill 4148 focuses on the repeal of additional ad valorem taxes that are imposed when there are changes in the use of certain land. This bill seeks to amend existing provisions in the Tax Code, particularly those related to lands previously designated for agricultural use. Under the proposed legislation, the complexity of land use changes and the accompanying tax responsibilities are streamlined, which is anticipated to alleviate the financial burdens on landowners transitioning their properties to uses outside of agricultural designations.

Contention

While the bill is presented as a means to assist landowners, it may not come without contention. There are concerns regarding the potential implications for local governments and tax revenues, as repealing such taxes could diminish funding sources allocated for public goods and services. Opponents of the bill may argue that while it provides immediate relief for landowners, it shifts the fiscal responsibility onto local communities, thereby raising questions about sustainable funding for services relied upon by constituents.