Relating to the repeal of the additional ad valorem taxes imposed as a result of certain changes in the use of open-space land appraised as agricultural land.
Impact
The passage of HB 2292 would amend several sections of the Texas Tax Code, making it easier for landowners who utilize their land for agriculture to avoid unexpected tax liabilities. Specifically, it modifies the provisions related to the assessment of property for tax purposes, clarifying that waivers of special appraisals will not constitute a change in use of the property. This change would simplify administrative processes for local appraisal districts and provide greater financial predictability for agricultural producers throughout Texas.
Summary
House Bill 2292 aims to repeal additional ad valorem taxes imposed due to changes in the use of open-space land that is appraised as agricultural land. This legislation is intended to alleviate the financial burden on landowners who may experience tax imposition when their land is redirected from agricultural use to another purpose. By removing these additional taxes, the bill seeks to encourage the preservation and continued use of agricultural land for farming and ranching operations, which are vital to the state's economy.
Conclusion
In summary, HB 2292 represents a significant shift in Texas property tax law regarding agricultural land. While proponents claim that it will support farmers and promote the viability of agricultural operations, the implications for local taxation and land use management will likely keep this bill under scrutiny as it moves through the legislative process.
Contention
Despite the potential benefits for landowners, there are notable points of contention surrounding HB 2292. Critics may argue that repealing these additional taxes could ultimately reduce local government revenues, as agricultural lands often provide significant taxable income. Moreover, there is concern that without adequate oversight, the unintended consequence of this bill could lead to agricultural land being converted for more profitable non-agricultural uses, thereby jeopardizing the state's agricultural heritage and resources.
Relating to an exemption from ad valorem taxation of a portion of the appraised value of tangible personal property that is held or used for the production of income and a franchise tax credit for the payment of certain related ad valorem taxes.
Relating to the authority of the owner of a residence homestead to receive a discount for making an early payment of the ad valorem taxes on the homestead.
Relating to the procedure for delivery by a chief appraiser of a form for reapplying for the appraisal of land for ad valorem tax purposes as agricultural or open-space land.
Relating to the repeal of the additional ad valorem taxes imposed as a result of the sale or change in the use of land appraised as agricultural or open-space land.
Relating to the effective date of certain actions taken by the commissioner of education against school districts that exceed the equalized wealth level and to reattachment of property detached from a school district by the commissioner of education to achieve the equalized wealth level.
Relating to the effective date of certain actions taken by the commissioner of education against school districts that exceed the equalized wealth level and to reattachment of property detached from a school district by the commissioner of education to achieve the equalized wealth level.
Relating to the eligibility of certain land for appraisal for ad valorem tax purposes on the basis of its productivity value and the consequences for those purposes of a change of use or sale of the land.