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.
Impact
The implications of HB1662 are significant for land management and tax policy in Texas. It seeks to amend various sections of the Tax Code that currently enforce additional taxes on land that ceases to be used for its designated purpose. This not only affects current landowners, particularly those over 65 who are already financially vulnerable due to fixed incomes, but also aims to encourage the preservation of agricultural lands amid expanding urbanization. The repeal could lead to a more stable tax environment for agricultural producers and help prevent displacement of local farming communities.
Summary
House Bill 1662 seeks to repeal the additional ad valorem taxes that are imposed on agricultural land, open-space land, and timber land when there are changes in the land's use. The bill's primary aim is to alleviate the financial burden on landowners who might be subjected to higher taxes due to alterations in land designation, enabling them to maintain their property while still adhering to agricultural practices. By eliminating these additional taxes, proponents argue that the bill will help preserve agricultural lands and support rural economies.
Contention
Despite its positive intentions, HB1662 may face contention regarding its fiscal implications for state and local governance. Critics may express concerns that repealing these taxes could lead to reduced revenue for public services funded by land taxes, particularly in rural areas where agriculture plays a crucial economic role. The examination of these fiscal dynamics could raise questions about the balance between fostering economic development in the agricultural sector and ensuring adequate funding for local infrastructure and services that depend on property tax revenues.
Enabling for
Proposing a constitutional amendment repealing the provision which subjects land designated for agricultural use to an additional tax when the land is diverted to a purpose other than agricultural use or sold.
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 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 the sale or change in the use of land appraised as agricultural or open-space land.