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 SB362 will have significant implications for landowners in Texas who utilize their land for agricultural purposes. By repealing the additional taxes, it is expected to lower the overall tax burden faced by these landowners, thereby making agricultural enterprises more financially viable. This could encourage the continued use of land for agricultural production and mitigate the impact of urban development on agricultural lands by providing a more favorable tax environment.
Summary
SB362 aims to repeal the additional ad valorem taxes that are imposed due to changes in the use of open-space land appraised as agricultural land. The bill modifies specific sections of the Texas Tax Code, specifically related to how agricultural land is appraised and taxed. By amending various sections of the Tax Code, it seeks to provide clarity on what constitutes a change of use and aims to alleviate the tax burden on landowners who may otherwise face additional taxes due to changes in land classification or usage.
Contention
However, the bill does raise some points of contention among various stakeholders. Proponents argue that repealing these taxes is essential for supporting agricultural businesses, especially small-scale farmers who may struggle with high operational costs. Conversely, opponents may point out that the repeal could lead to a shortfall in local government revenues, which often rely on property taxes for funding essential services. This tension between supporting agricultural interests and maintaining adequate funding for local services is at the heart of discussions surrounding SB362.
Identical
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.
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 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 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.
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.