81R7234 JE-D
By: Parker H.B. No. 2230
A BILL TO BE ENTITLED
AN ACT
relating to liability for interest if land designated for
agricultural use for ad valorem tax purposes is sold or diverted to
a nonagricultural use.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 23.46(c) and (d), Tax Code, are amended
to read as follows:
(c) If land that has been designated for agricultural use in
any year is sold or diverted to a nonagricultural use, the total
amount of additional taxes for the three years preceding the year in
which the land is sold or diverted [plus interest at the rate
provided for delinquent taxes] becomes due. A determination that
the land has been diverted to a nonagricultural use is made by the
chief appraiser. For purposes of this subsection, the chief
appraiser may not consider any period during which land is owned by
the state in determining whether the land has been diverted to a
nonagricultural use. The chief appraiser shall deliver a notice of
the determination to the owner of the land as soon as possible after
making the determination and shall include in the notice an
explanation of the owner's right to protest the determination. If
the owner does not file a timely protest or if the final
determination of the protest is that the additional taxes are due,
the assessor for each taxing unit shall prepare and deliver a bill
for the additional taxes [plus interest] as soon as practicable
after the change of use occurs. If the additional taxes are due
because of a sale of the land, the assessor for each taxing unit
shall prepare and deliver the bill as soon as practicable after the
sale occurs. The taxes [and interest] are due and become delinquent
and incur penalties and interest as provided by law for other
delinquent ad valorem taxes imposed by the taxing unit if not paid
before the next February 1 that is at least 20 days after the date
the bill is delivered to the owner of the land.
(d) A tax lien attaches to the land on the date the sale or
change of use occurs to secure payment of the additional tax [and
interest] imposed by Subsection (c) [of this section] and any
penalties and interest incurred if the tax becomes delinquent. The
lien exists in favor of all taxing units for which the additional
tax is imposed.
SECTION 2. The change in law made by this Act applies only
to a sale or diversion to a nonagricultural use of land appraised
under Subchapter C, Chapter 23, Tax Code, that occurs on or after
the effective date of this Act.
SECTION 3. This Act takes effect September 1, 2009.