Proposing a constitutional amendment repealing the provision which 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, HJR68 will lead to a significant change in how agricultural land is taxed, removing the additional tax liability that currently exists when land is repurposed. The proposed amendment is set to take effect on January 1, 2018, impacting all tax years starting from that date. By repealing this provision, the resolution aims to support landowner rights and promote the efficient use of land in the state, especially in the context of changing agricultural practices and urban development pressures.
Summary
HJR68 is a joint resolution proposing a constitutional amendment aimed at repealing a provision in the Texas Constitution that imposes an additional tax on land designated for agricultural use when it is diverted for other uses or sold. This bill is significant as it seeks to alleviate the tax burden on landowners who may wish to utilize their agricultural land for non-agricultural purposes without facing severe financial penalties. The current law often disincentivizes landowners from making such changes in land use, leading to conflicts between state agricultural policies and land development goals.
Contention
The potential repeal of the agricultural tax could evoke various responses from different stakeholders. Supporters argue that the existing provision is overly burdensome and restricts landowners' flexibility in land use decisions, which is essential for modern agricultural practices and economic development. However, opponents may raise concerns about the long-term implications for state tax revenues that could arise from the repeal, particularly if a significant amount of agricultural land is transitioned to other uses. The debate will likely center around balancing the need for fiscal responsibility with promoting land use freedom and agricultural viability.
Enabled by
Relating to the repeal of the additional ad valorem taxes imposed as a result of certain changes in the use of agricultural land, open-space land, and timber land.
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.
Proposing a constitutional amendment to authorize the legislature to limit the maximum appraised value for ad valorem tax purposes in a tax year of land designated for agricultural use or open-space land devoted to farm, ranch, or wildlife management purposes to a specified percentage of the appraised value of the land for the preceding tax year.
Proposing a constitutional amendment providing that real property not held for profit that is used exclusively for human burial is not subject to seizure or sale for delinquent ad valorem taxes.