Texas House Bill HB561

Texas 2013 - 83rd Regular

Caption

Relating to an exemption for land owned by a school from the additional tax imposed on the change of use of land appraised for ad valorem tax purposes as qualified open-space land.

Note

The bill’s successful passage through the legislative process indicates a common understanding of the importance of supporting educational institutions and enhancing their ability to adapt land use in a way that serves both educational and community interests.

Impact

If enacted, HB 561 would significantly alter how schools manage their land assets by providing them with a financial incentive to adapt their property uses. This bill implies a shift in the tax burden related to land-use changes, potentially allowing schools to contribute to community needs without the threat of financial penalties for re-purposing land. The intent is to promote better utilization of school-owned land while supporting educational and community initiatives.

Summary

House Bill 561 addresses the taxation of land owned by schools in Texas, specifically relating to the additional tax imposed on the change of use of such land that is appraised for ad valorem tax as qualified open-space land. The bill proposes an exemption for schools converting their land to eligible uses within a five-year time frame. This is designed to encourage schools to make use of their properties without incurring additional tax penalties for changing the use of the land.

Contention

While the bill received unanimous support in the House with a vote of 147-0, the discussion around the impact of such exemptions could involve concerns from local governments regarding the potential loss of tax revenue. Opponents may argue that this could create inequalities or hinder local governance in land-use regulation. However, the simplicity of the bill's intention suggests that most stakeholders saw the merit in allowing schools greater flexibility with their property.