Texas House Bill HJR12

Texas 2021 - 87th 2nd C.S.

Caption

Proposing a constitutional amendment repealing the provision that subjects land designated for agricultural use to an additional tax when the land is diverted to a purpose other than agricultural use or sold.

Impact

If passed, the amendment would significantly change the financial landscape for property owners involved in agriculture, allowing greater autonomy over their land without the punitive tax consequences that currently exist. The change is set to take effect for tax years beginning on or after January 1, 2023, which suggests a timely alteration in how land transacted for non-agricultural uses is taxed. This move aligns with efforts to encourage landowners to develop or sell their land for non-agricultural purposes, thereby potentially stimulating local economies and offering more development options.

Summary

HJR12 proposes a constitutional amendment aimed at repealing a provision within Section 1-d(f), Article VIII of the Texas Constitution. This provision currently imposes an additional tax on land designated for agricultural use when it is diverted to purposes outside agriculture or sold. The repeal is intended to alleviate the financial burden placed on landowners who may want to change the use of their agricultural property. By removing this additional tax, the bill seeks to promote flexibility and economic development for landowners by enabling them to pursue alternative land uses without the fear of incurring extra tax liabilities.

Contention

There may be concerns surrounding the implications of repealing this provision, particularly regarding local agricultural economies. Opponents could argue that such a repeal might lead to increased development pressures on agricultural land, which could subsequently undermine local food production or agricultural operations. Additionally, discussions among stakeholders may reveal differing opinions on the appropriateness of easing tax burdens against the potential loss of valuable agricultural land to non-agricultural development. As such, the discussion around HJR12 may reflect a broader debate on land preservation versus economic development needs within the state.