Texas 2009 - 81st Regular

Texas House Bill HB2230 Compare Versions

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1	1	By: Parker, Pea H.B. No. 2230
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to liability for interest if land appraised for ad valorem
7	7	tax purposes as agricultural or open-space land is sold or diverted
8	8	to a different use.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Sections 23.46(c) and (d), Tax Code, are amended
11	11	to read as follows:
12	12	(c) If land that has been designated for agricultural use in
13	13	any year is sold or diverted to a nonagricultural use, the total
14	14	amount of additional taxes for the three years preceding the year in
15	15	which the land is sold or diverted [plus interest at the rate
16	16	provided for delinquent taxes] becomes due. A determination that
17	17	the land has been diverted to a nonagricultural use is made by the
18	18	chief appraiser. For purposes of this subsection, the chief
19	19	appraiser may not consider any period during which land is owned by
20	20	the state in determining whether the land has been diverted to a
21	21	nonagricultural use. The chief appraiser shall deliver a notice of
22	22	the determination to the owner of the land as soon as possible after
23	23	making the determination and shall include in the notice an
24	24	explanation of the owner's right to protest the determination. If
25	25	the owner does not file a timely protest or if the final
26	26	determination of the protest is that the additional taxes are due,
27	27	the assessor for each taxing unit shall prepare and deliver a bill
28	28	for the additional taxes [plus interest] as soon as practicable
29	29	after the change of use occurs. If the additional taxes are due
30	30	because of a sale of the land, the assessor for each taxing unit
31	31	shall prepare and deliver the bill as soon as practicable after the
32	32	sale occurs. The taxes [and interest] are due and become delinquent
33	33	and incur penalties and interest as provided by law for other
34	34	delinquent ad valorem taxes imposed by the taxing unit if not paid
35	35	before the next February 1 that is at least 20 days after the date
36	36	the bill is delivered to the owner of the land.
37	37	(d) A tax lien attaches to the land on the date the sale or
38	38	change of use occurs to secure payment of the additional tax [and
39	39	interest] imposed by Subsection (c) [of this section] and any
40	40	penalties and interest incurred if the tax becomes delinquent. The
41	41	lien exists in favor of all taxing units for which the additional
42	42	tax is imposed.
43	43	SECTION 2. Sections 23.55(a), (b), (e), (f), (m), and (n),
44	44	Tax Code, are amended to read as follows:
45	45	(a) If the use of land that has been appraised as provided by
46	46	this subchapter changes, an additional tax is imposed on the land
47	47	equal to the difference between the taxes imposed on the land for
48	48	each of the five years preceding the year in which the change of use
49	49	occurs that the land was appraised as provided by this subchapter
50	50	and the tax that would have been imposed had the land been taxed on
51	51	the basis of market value in each of those years[, plus interest at
52	52	an annual rate of seven percent calculated from the dates on which
53	53	the differences would have become due]. For purposes of this
54	54	subsection, the chief appraiser may not consider any period during
55	55	which land is owned by the state in determining whether a change in
56	56	the use of the land has occurred.
57	57	(b) A tax lien attaches to the land on the date the change of
58	58	use occurs to secure payment of the additional tax [and interest]
59	59	imposed by this section and any penalties incurred. The lien exists
60	60	in favor of all taxing units for which the additional tax is
61	61	imposed.
62	62	(e) A determination that a change in use of the land has
63	63	occurred is made by the chief appraiser. The chief appraiser shall
64	64	deliver a notice of the determination to the owner of the land as
65	65	soon as possible after making the determination and shall include
66	66	in the notice an explanation of the owner's right to protest the
67	67	determination. If the owner does not file a timely protest or if
68	68	the final determination of the protest is that the additional taxes
69	69	are due, the assessor for each taxing unit shall prepare and deliver
70	70	a bill for the additional taxes [plus interest] as soon as
71	71	practicable. The taxes [and interest] are due and become
72	72	delinquent and incur penalties and interest as provided by law for
73	73	ad valorem taxes imposed by the taxing unit if not paid before the
74	74	next February 1 that is at least 20 days after the date the bill is
75	75	delivered to the owner of the land.
76	76	(f) The sanctions provided by Subsection (a) [of this
77	77	section] do not apply if the change of use occurs as a result of:
78	78	(1) a sale for right-of-way;
79	79	(2) a condemnation;
80	80	(3) a transfer of the property to the state or a
81	81	political subdivision of the state to be used for a public purpose;
82	82	or
83	83	(4) a transfer of the property from the state, a
84	84	political subdivision of the state, or a nonprofit corporation
85	85	created by a municipality with a population of more than one million
86	86	under the Development Corporation Act (Subtitle C1, Title 12, Local
87	87	Government Code) to an individual or a business entity for purposes
88	88	of economic development if the comptroller determines that the
89	89	economic development is likely to generate for deposit in the
90	90	general revenue fund during the next two fiscal bienniums an amount
91	91	of taxes and other revenues that equals or exceeds 20 times the
92	92	amount of additional taxes [and interest] that would have been
93	93	imposed under Subsection (a) had the sanctions provided by that
94	94	subsection applied to the transfer.
95	95	(m) For purposes of determining whether a transfer of land
96	96	qualifies for the exemption from additional taxes provided by
97	97	Subsection (f)(4), on an application of the entity transferring or
98	98	proposing to transfer the land or of the individual or entity to
99	99	which the land is transferred or proposed to be transferred, the
100	100	comptroller shall determine the amount of taxes and other revenues
101	101	likely to be generated as a result of the economic development for
102	102	deposit in the general revenue fund during the next two fiscal
103	103	bienniums. If the comptroller determines that the amount of those
104	104	revenues is likely to equal or exceed 20 times the amount of
105	105	additional taxes [and interest] that would be imposed under
106	106	Subsection (a) if the sanctions provided by that subsection applied
107	107	to the transfer, the comptroller shall issue a letter to the
108	108	applicant stating the comptroller's determination and shall send a
109	109	copy of the letter by regular mail to the chief appraiser.
110	110	(n) Within one year of the conclusion of the two fiscal
111	111	bienniums for which the comptroller issued a letter as provided
112	112	under Subsection (m), the board of directors of the appraisal
113	113	district, by official board action, may direct the chief appraiser
114	114	to request the comptroller to determine if the amount of revenues
115	115	was equal to or exceeded 20 times the amount of taxes [and interest]
116	116	that would have been imposed under Subsection (a). The comptroller
117	117	shall issue a finding as to whether the amount of revenue met the
118	118	projected increases. The chief appraiser shall review the results
119	119	of the comptroller's finding and shall make a determination as to
120	120	whether sanctions under Subsection (a) should be imposed. If the
121	121	chief appraiser determines that the sanctions provided by
122	122	Subsection (a) shall be imposed, the sanctions shall be based on the
123	123	date of the transfer of the property under Subsection (f)(4).
124	124	SECTION 3. Sections 23.58(c) and (d), Tax Code, are amended
125	125	to read as follows:
126	126	(c) A provision in an instrument pertaining to a loan
127	127	secured by a lien in favor of the lender on land appraised according
128	128	to this subchapter that requires the borrower to make a payment to
129	129	protect the lender from loss because of the imposition of
130	130	additional taxes [and interest] under Section 23.55 is void unless
131	131	the provision:
132	132	(1) requires the borrower to pay into an escrow
133	133	account established by the lender an amount equal to the additional
134	134	taxes [and interest] that would be due under Section 23.55 if a
135	135	change of use occurred on January 1 of the year in which the loan is
136	136	granted or amended;
137	137	(2) requires the escrow account to bear interest to be
138	138	credited to the account monthly;
139	139	(3) permits the lender to apply money in the escrow
140	140	account to the payment of a bill for additional taxes [and interest]
141	141	under Section 23.55 before the loan is paid and requires the lender
142	142	to refund the balance remaining in the escrow account after the bill
143	143	is paid to the borrower; and
144	144	(4) requires the lender to refund the money in the
145	145	escrow account to the borrower on the payment of the loan.
146	146	(d) On the request of the borrower or the borrower's
147	147	representative, the assessor for each taxing unit shall compute the
148	148	additional taxes [and interest] that would be due that taxing unit
149	149	under Section 23.55 if a change of use occurred on January 1 of the
150	150	year in which the loan is granted or amended. The assessor may
151	151	charge a reasonable fee not to exceed the actual cost of making the
152	152	computation.
153	153	SECTION 4. Sections 23.46(c) and (d), Tax Code, as amended
154	154	by this Act, apply only to a sale or diversion to a nonagricultural
155	155	use of land appraised under Subchapter C, Chapter 23, Tax Code, that
156	156	occurs on or after the effective date of this Act.
157	157	SECTION 5. Sections 23.55(a), (b), (e), (f), (m), and (n),
158	158	Tax Code, as amended by this Act, apply only to a change of use of
159	159	land appraised under Subchapter D, Chapter 23, Tax Code, that
160	160	occurs on or after the effective date of this Act.
161	161	SECTION 6. Sections 23.58(c) and (d), Tax Code, as amended
162	162	by this Act, apply only to a loan secured by a lien on open-space
163	163	land that is contracted for on or after the effective date of this
164	164	Act.
165	165	SECTION 7. This Act takes effect September 1, 2009.