Texas House Bill HB3935

Texas 2025 - 89th Regular

• Filed: 3/6/25

Caption

Relating to an exemption from ad valorem taxation of a portion of the appraised value of certain land that is located in a priority groundwater management area and is not irrigated.

Impact

The bill amends the Tax Code, specifically adding Section 11.38 concerning property tax exemptions. It signifies a legislative intent to support land management practices that could benefit overall water conservation strategies in Texas. This legislative change could potentially affect a wide range of agricultural and undeveloped lands, encouraging property owners to maintain their land without the immediate pressure of property taxes, thus facilitating better environmental practices in these sensitive areas.

Summary

House Bill 3935 proposes a new exemption from ad valorem taxation for certain parcels of land located in priority groundwater management areas that are not irrigated. Under the bill, property owners would be entitled to exempt 35 percent of the appraised value of qualifying land, specifically for tracts that meet criteria including being at least half an acre and not covered by certain other appraisal categories. This aims to incentivize the conservation of non-irrigated land in areas where groundwater management is a priority, promoting better stewardship of water resources.

Contention

While supportive voices may praise this tax exemption as a necessary step toward environmental sustainability, there could be potential contention surrounding its implementation. Critics might argue that such exemptions could reduce overall tax revenue, impacting local budgets and services. Additionally, there may be concerns regarding the definitions of land qualifying for the exemption, with some stakeholders fearing it could lead to improper claims or misuse of the exemption provisions, undermining its intended purpose.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 11. Taxable Property And Exemptions
  • Section: New Section