Texas 2017 - 85th Regular

Texas House Bill HB1662 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	85R3441 SMT-D
2	2	By: Phelan H.B. No. 1662
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the repeal of the additional ad valorem taxes imposed as
8	8	a result of certain changes in the use of agricultural land,
9	9	open-space land, and timber land.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	ARTICLE 1. REPEAL OF ADDITIONAL TAX PROVISIONS IN SUBCHAPTERS C, D,
12	12	E, AND H, CHAPTER 23, TAX CODE
13	13	SECTION 1.01. Section 1.07(d), Tax Code, is amended to read
14	14	as follows:
15	15	(d) A notice required by Section 11.43(q), 11.45(d),
16	16	23.44(d), [23.46(c) or (f),] 23.54(e), 23.541(c), [23.55(e),]
17	17	23.551(a), 23.57(d), [23.76(e),] 23.79(d), or 23.85(d) must be sent
18	18	by certified mail.
19	19	SECTION 1.02. Section 23.20(g), Tax Code, is amended to
20	20	read as follows:
21	21	(g) A waiver of a special appraisal of property under
22	22	Subchapter [C, D, E,] F[,] or G [of this chapter] does not
23	23	constitute a change of use of the property or diversion of the
24	24	property to another use for purposes of the imposition of
25	25	additional taxes under either [any] of those subchapters.
26	26	SECTION 1.03. Section 23.52(e), Tax Code, is amended to
27	27	read as follows:
28	28	(e) The [For the purposes of Section 23.55 of this code,
29	29	the] chief appraiser [also] shall determine the market value of
30	30	qualified open-space land and shall record both the market value
31	31	and the appraised value in the appraisal records.
32	32	SECTION 1.04. Section 23.551(a), Tax Code, is amended to
33	33	read as follows:
34	34	(a) If land appraised as provided by this subchapter is
35	35	owned by an individual 65 years of age or older, before making a
36	36	determination that [a change in use of] the land is no longer
37	37	eligible for appraisal under this subchapter [has occurred], the
38	38	chief appraiser shall deliver a written notice to the owner stating
39	39	that the chief appraiser believes [a change in use of] the land may
40	40	no longer be eligible for appraisal under this subchapter [have
41	41	occurred].
42	42	SECTION 1.05. Section 23.73(c), Tax Code, is amended to
43	43	read as follows:
44	44	(c) The [For the purposes of Section 23.76 of this code,
45	45	the] chief appraiser [also] shall determine the market value of
46	46	qualified timber land and shall record both the market value and the
47	47	appraised value in the appraisal records.
48	48	SECTION 1.06. Section 31.01(c), Tax Code, is amended to
49	49	read as follows:
50	50	(c) The tax bill or a separate statement accompanying the
51	51	tax bill shall:
52	52	(1) identify the property subject to the tax;
53	53	(2) state the appraised value, assessed value, and
54	54	taxable value of the property;
55	55	(3) if the property is land appraised as provided by
56	56	Subchapter C, D, E, or H, Chapter 23, state the market value of the
57	57	land [and the taxable value for purposes of deferred or additional
58	58	taxation as provided by Section 23.46, 23.55, 23.76, or 23.9807, as
59	59	applicable];
60	60	(4) state the assessment ratio for the unit;
61	61	(5) state the type and amount of any partial exemption
62	62	applicable to the property, indicating whether it applies to
63	63	appraised or assessed value;
64	64	(6) state the total tax rate for the unit;
65	65	(7) state the amount of tax due, the due date, and the
66	66	delinquency date;
67	67	(8) explain the payment option and discounts provided
68	68	by Sections 31.03 and 31.05, if available to the unit's taxpayers,
69	69	and state the date on which each of the discount periods provided by
70	70	Section 31.05 concludes, if the discounts are available;
71	71	(9) state the rates of penalty and interest imposed
72	72	for delinquent payment of the tax;
73	73	(10) include the name and telephone number of the
74	74	assessor for the unit and, if different, of the collector for the
75	75	unit;
76	76	(11) for real property, state for the current tax year
77	77	and each of the preceding five tax years:
78	78	(A) the appraised value and taxable value of the
79	79	property;
80	80	(B) the total tax rate for the unit;
81	81	(C) the amount of taxes imposed on the property
82	82	by the unit; and
83	83	(D) the difference, expressed as a percent
84	84	increase or decrease, as applicable, in the amount of taxes imposed
85	85	on the property by the unit compared to the amount imposed for the
86	86	preceding tax year; and
87	87	(12) for real property, state the differences,
88	88	expressed as a percent increase or decrease, as applicable, in the
89	89	following for the current tax year as compared to the fifth tax year
90	90	before that tax year:
91	91	(A) the appraised value and taxable value of the
92	92	property;
93	93	(B) the total tax rate for the unit; and
94	94	(C) the amount of taxes imposed on the property
95	95	by the unit.
96	96	SECTION 1.07. Section 41.41(a), Tax Code, is amended to
97	97	read as follows:
98	98	(a) A property owner is entitled to protest before the
99	99	appraisal review board the following actions:
100	100	(1) determination of the appraised value of the
101	101	owner's property or, in the case of land appraised as provided by
102	102	Subchapter C, D, E, or H, Chapter 23, determination of its appraised
103	103	or market value;
104	104	(2) unequal appraisal of the owner's property;
105	105	(3) inclusion of the owner's property on the appraisal
106	106	records;
107	107	(4) denial to the property owner in whole or in part of
108	108	a partial exemption;
109	109	(5) determination that the owner's land does not
110	110	qualify for appraisal as provided by Subchapter C, D, E, or H,
111	111	Chapter 23;
112	112	(6) identification of the taxing units in which the
113	113	owner's property is taxable in the case of the appraisal district's
114	114	appraisal roll;
115	115	(7) determination that the property owner is the owner
116	116	of property; or
117	117	(8) [a determination that a change in use of land
118	118	appraised under Subchapter C, D, E, or H, Chapter 23, has occurred;
119	119	or
120	120	[(9)] any other action of the chief appraiser,
121	121	appraisal district, or appraisal review board that applies to and
122	122	adversely affects the property owner.
123	123	SECTION 1.08. Section 41.44(a), Tax Code, is amended to
124	124	read as follows:
125	125	(a) Except as provided by Subsections (b), (b-1), (c),
126	126	(c-1), and (c-2), to be entitled to a hearing and determination of a
127	127	protest, the property owner initiating the protest must file a
128	128	written notice of the protest with the appraisal review board
129	129	having authority to hear the matter protested:
130	130	(1) before May 1 or not later than the 30th day after
131	131	the date that notice to the property owner was delivered to the
132	132	property owner as provided by Section 25.19, if the property is a
133	133	single-family residence that qualifies for an exemption under
134	134	Section 11.13, whichever is later;
135	135	(2) before June 1 or not later than the 30th day after
136	136	the date that notice was delivered to the property owner as provided
137	137	by Section 25.19 in connection with any other property, whichever
138	138	is later;
139	139	(3) in the case of a protest of a change in the
140	140	appraisal records ordered as provided by Subchapter A of this
141	141	chapter or by Chapter 25, not later than the 30th day after the date
142	142	notice of the change is delivered to the property owner; or
143	143	(4) [in the case of a determination that a change in
144	144	the use of land appraised under Subchapter C, D, E, or H, Chapter
145	145	23, has occurred, not later than the 30th day after the date the
146	146	notice of the determination is delivered to the property owner; or
147	147	[(5)] in the case of a determination of eligibility
148	148	for a refund under Section 23.1243, not later than the 30th day
149	149	after the date the notice of the determination is delivered to the
150	150	property owner.
151	151	SECTION 1.09. Section 60.022, Agriculture Code, is amended
152	152	to read as follows:
153	153	Sec. 60.022. CONTENTS OF PETITION. A petition filed under
154	154	Section 60.021 must:
155	155	(1) describe the boundaries of the proposed district
156	156	by metes and bounds or by lot and block number, if there is a
157	157	recorded map or plat and survey of the area;
158	158	(2) include a name for the proposed district, which
159	159	must include the term "Agricultural Development District";
160	160	(3) be signed by the landowners of any land to be
161	161	included within the proposed district and provide an acknowledgment
162	162	consistent with Section 121.001, Civil Practice and Remedies Code,
163	163	that the landowners desire the land to be included in the district;
164	164	(4) include the names of at least five persons who are
165	165	willing and qualified to serve as temporary directors of the
166	166	district;
167	167	(5) name each county in which any agricultural
168	168	facilities to be owned by the district are to be located;
169	169	(6) name each municipality in which any part of the
170	170	district is to be located;
171	171	(7) state the general nature of the proposed
172	172	development and the cost of the development as then estimated by the
173	173	petitioners;
174	174	(8) state the necessity and feasibility of the
175	175	proposed district and whether the district will serve the public
176	176	purpose of furthering agricultural interests;
177	177	(9) include a pledge that the district will make
178	178	payments in lieu of taxes to any school district and county in which
179	179	any real property to be owned by the district is located, in [as
180	180	follows:
181	181	[(A)] annual payments to each entity that are
182	182	equal to the amount of taxes imposed on the real property by the
183	183	entity in the year of the district's creation; and
184	184	[(B) a payment to each entity equal to the amount
185	185	that would be due under Section 23.55, Tax Code, on the district's
186	186	date of creation; and]
187	187	(10) include a pledge that, if the district employs
188	188	more than 50 persons, the district will make payments in lieu of
189	189	taxes to any school district, in addition to those made under
190	190	Subdivision (9), in an amount negotiated between the district and
191	191	the school district.
192	192	SECTION 1.10. Section 21.0421(e), Property Code, is amended
193	193	to read as follows:
194	194	(e) This section does not[:
195	195	[(1)] authorize groundwater rights appraised
196	196	separately from the real property under this section to be
197	197	appraised separately from real property for property tax appraisal
198	198	purposes[; or
199	199	[(2) subject real property condemned for the purpose
200	200	described by Subsection (a) to an additional tax as provided by
201	201	Section 23.46 or 23.55, Tax Code].
202	202	SECTION 1.11. The following provisions of the Tax Code are
203	203	repealed:
204	204	(1) Section 23.46;
205	205	(2) Sections 23.47(c) and (d);
206	206	(3) Section 23.55;
207	207	(4) Sections 23.58(c) and (d);
208	208	(5) Section 23.76; and
209	209	(6) Section 23.9807.
210	210	SECTION 1.12. The repeal of Sections 23.46, 23.55, 23.76,
211	211	and 23.9807, Tax Code, by this Act does not affect an additional tax
212	212	imposed as a result of a change of use of land appraised under
213	213	Subchapter C, D, E, or H, Chapter 23, Tax Code, that occurred before
214	214	the effective date of this Act, and the former law is continued in
215	215	effect for purposes of that tax.
216	216	ARTICLE 2. REPEAL OF ADDITIONAL TAX PROVISIONS IN SUBCHAPTERS D, E,
217	217	AND H, CHAPTER 23, TAX CODE
218	218	SECTION 2.01. Section 1.07(d), Tax Code, is amended to read
219	219	as follows:
220	220	(d) A notice required by Section 11.43(q), 11.45(d),
221	221	23.44(d), 23.46(c) or (f), 23.54(e), 23.541(c), [23.55(e),]
222	222	23.551(a), 23.57(d), [23.76(e),] 23.79(d), or 23.85(d) must be sent
223	223	by certified mail.
224	224	SECTION 2.02. Section 23.20(g), Tax Code, is amended to
225	225	read as follows:
226	226	(g) A waiver of a special appraisal of property under
227	227	Subchapter C, [D, E,] F, or G [of this chapter] does not constitute
228	228	a change of use of the property or diversion of the property to
229	229	another use for purposes of the imposition of additional taxes
230	230	under any of those subchapters.
231	231	SECTION 2.03. Section 23.52(e), Tax Code, is amended to
232	232	read as follows:
233	233	(e) The [For the purposes of Section 23.55 of this code,
234	234	the] chief appraiser [also] shall determine the market value of
235	235	qualified open-space land and shall record both the market value
236	236	and the appraised value in the appraisal records.
237	237	SECTION 2.04. Section 23.551(a), Tax Code, is amended to
238	238	read as follows:
239	239	(a) If land appraised as provided by this subchapter is
240	240	owned by an individual 65 years of age or older, before making a
241	241	determination that [a change in use of] the land is no longer
242	242	eligible for appraisal under this subchapter [has occurred], the
243	243	chief appraiser shall deliver a written notice to the owner stating
244	244	that the chief appraiser believes [a change in use of] the land may
245	245	no longer be eligible for appraisal under this subchapter [have
246	246	occurred].
247	247	SECTION 2.05. Section 23.73(c), Tax Code, is amended to
248	248	read as follows:
249	249	(c) The [For the purposes of Section 23.76 of this code,
250	250	the] chief appraiser [also] shall determine the market value of
251	251	qualified timber land and shall record both the market value and the
252	252	appraised value in the appraisal records.
253	253	SECTION 2.06. Sections 31.01(c) and (c-1), Tax Code, are
254	254	amended to read as follows:
255	255	(c) The tax bill or a separate statement accompanying the
256	256	tax bill shall:
257	257	(1) identify the property subject to the tax;
258	258	(2) state the appraised value, assessed value, and
259	259	taxable value of the property;
260	260	(3) if the property is land appraised as provided by
261	261	Subchapter C, [D, E, or H,] Chapter 23, state the market value and
262	262	the taxable value for purposes of deferred or additional taxation
263	263	as provided by Section 23.46[, 23.55, 23.76, or 23.9807, as
264	264	applicable];
265	265	(4) if the property is land appraised as provided by
266	266	Subchapter D, E, or H, Chapter 23, state the market value of the
267	267	land;
268	268	(5) state the assessment ratio for the unit;
269	269	(6) [(5)] state the type and amount of any partial
270	270	exemption applicable to the property, indicating whether it applies
271	271	to appraised or assessed value;
272	272	(7) [(6)] state the total tax rate for the unit;
273	273	(8) [(7)] state the amount of tax due, the due date,
274	274	and the delinquency date;
275	275	(9) [(8)] explain the payment option and discounts
276	276	provided by Sections 31.03 and 31.05, if available to the unit's
277	277	taxpayers, and state the date on which each of the discount periods
278	278	provided by Section 31.05 concludes, if the discounts are
279	279	available;
280	280	(10) [(9)] state the rates of penalty and interest
281	281	imposed for delinquent payment of the tax;
282	282	(11) [(10)] include the name and telephone number of
283	283	the assessor for the unit and, if different, of the collector for
284	284	the unit;
285	285	(12) [(11)] for real property, state for the current
286	286	tax year and each of the preceding five tax years:
287	287	(A) the appraised value and taxable value of the
288	288	property;
289	289	(B) the total tax rate for the unit;
290	290	(C) the amount of taxes imposed on the property
291	291	by the unit; and
292	292	(D) the difference, expressed as a percent
293	293	increase or decrease, as applicable, in the amount of taxes imposed
294	294	on the property by the unit compared to the amount imposed for the
295	295	preceding tax year; and
296	296	(13) [(12)] for real property, state the differences,
297	297	expressed as a percent increase or decrease, as applicable, in the
298	298	following for the current tax year as compared to the fifth tax year
299	299	before that tax year:
300	300	(A) the appraised value and taxable value of the
301	301	property;
302	302	(B) the total tax rate for the unit; and
303	303	(C) the amount of taxes imposed on the property
304	304	by the unit.
305	305	(c-1) If for any of the preceding six tax years any
306	306	information required by Subsection (c)(12) [(c)(11)] or (13) [(12)]
307	307	to be included in a tax bill or separate statement is unavailable,
308	308	the tax bill or statement must state that the information is not
309	309	available for that year.
310	310	SECTION 2.07. Section 41.41(a), Tax Code, is amended to
311	311	read as follows:
312	312	(a) A property owner is entitled to protest before the
313	313	appraisal review board the following actions:
314	314	(1) determination of the appraised value of the
315	315	owner's property or, in the case of land appraised as provided by
316	316	Subchapter C, D, E, or H, Chapter 23, determination of its appraised
317	317	or market value;
318	318	(2) unequal appraisal of the owner's property;
319	319	(3) inclusion of the owner's property on the appraisal
320	320	records;
321	321	(4) denial to the property owner in whole or in part of
322	322	a partial exemption;
323	323	(5) determination that the owner's land does not
324	324	qualify for appraisal as provided by Subchapter C, D, E, or H,
325	325	Chapter 23;
326	326	(6) identification of the taxing units in which the
327	327	owner's property is taxable in the case of the appraisal district's
328	328	appraisal roll;
329	329	(7) determination that the property owner is the owner
330	330	of property;
331	331	(8) a determination that a change in use of land
332	332	appraised under Subchapter C, [D, E, or H,] Chapter 23, has
333	333	occurred; or
334	334	(9) any other action of the chief appraiser, appraisal
335	335	district, or appraisal review board that applies to and adversely
336	336	affects the property owner.
337	337	SECTION 2.08. Section 41.44(a), Tax Code, is amended to
338	338	read as follows:
339	339	(a) Except as provided by Subsections (b), (b-1), (c),
340	340	(c-1), and (c-2), to be entitled to a hearing and determination of a
341	341	protest, the property owner initiating the protest must file a
342	342	written notice of the protest with the appraisal review board
343	343	having authority to hear the matter protested:
344	344	(1) before May 1 or not later than the 30th day after
345	345	the date that notice to the property owner was delivered to the
346	346	property owner as provided by Section 25.19, if the property is a
347	347	single-family residence that qualifies for an exemption under
348	348	Section 11.13, whichever is later;
349	349	(2) before June 1 or not later than the 30th day after
350	350	the date that notice was delivered to the property owner as provided
351	351	by Section 25.19 in connection with any other property, whichever
352	352	is later;
353	353	(3) in the case of a protest of a change in the
354	354	appraisal records ordered as provided by Subchapter A of this
355	355	chapter or by Chapter 25, not later than the 30th day after the date
356	356	notice of the change is delivered to the property owner;
357	357	(4) in the case of a determination that a change in the
358	358	use of land appraised under Subchapter C, [D, E, or H,] Chapter 23,
359	359	has occurred, not later than the 30th day after the date the notice
360	360	of the determination is delivered to the property owner; or
361	361	(5) in the case of a determination of eligibility for a
362	362	refund under Section 23.1243, not later than the 30th day after the
363	363	date the notice of the determination is delivered to the property
364	364	owner.
365	365	SECTION 2.09. Section 60.022, Agriculture Code, is amended
366	366	to read as follows:
367	367	Sec. 60.022. CONTENTS OF PETITION. A petition filed under
368	368	Section 60.021 must:
369	369	(1) describe the boundaries of the proposed district
370	370	by metes and bounds or by lot and block number, if there is a
371	371	recorded map or plat and survey of the area;
372	372	(2) include a name for the proposed district, which
373	373	must include the term "Agricultural Development District";
374	374	(3) be signed by the landowners of any land to be
375	375	included within the proposed district and provide an acknowledgment
376	376	consistent with Section 121.001, Civil Practice and Remedies Code,
377	377	that the landowners desire the land to be included in the district;
378	378	(4) include the names of at least five persons who are
379	379	willing and qualified to serve as temporary directors of the
380	380	district;
381	381	(5) name each county in which any agricultural
382	382	facilities to be owned by the district are to be located;
383	383	(6) name each municipality in which any part of the
384	384	district is to be located;
385	385	(7) state the general nature of the proposed
386	386	development and the cost of the development as then estimated by the
387	387	petitioners;
388	388	(8) state the necessity and feasibility of the
389	389	proposed district and whether the district will serve the public
390	390	purpose of furthering agricultural interests;
391	391	(9) include a pledge that the district will make
392	392	payments in lieu of taxes to any school district and county in which
393	393	any real property to be owned by the district is located, in [as
394	394	follows:
395	395	[(A)] annual payments to each entity that are
396	396	equal to the amount of taxes imposed on the real property by the
397	397	entity in the year of the district's creation; and
398	398	[(B) a payment to each entity equal to the amount
399	399	that would be due under Section 23.55, Tax Code, on the district's
400	400	date of creation; and]
401	401	(10) include a pledge that, if the district employs
402	402	more than 50 persons, the district will make payments in lieu of
403	403	taxes to any school district, in addition to those made under
404	404	Subdivision (9), in an amount negotiated between the district and
405	405	the school district.
406	406	SECTION 2.10. Section 21.0421(e), Property Code, is amended
407	407	to read as follows:
408	408	(e) This section does not:
409	409	(1) authorize groundwater rights appraised separately
410	410	from the real property under this section to be appraised
411	411	separately from real property for property tax appraisal purposes;
412	412	or
413	413	(2) subject real property condemned for the purpose
414	414	described by Subsection (a) to an additional tax as provided by
415	415	Section 23.46 [or 23.55], Tax Code.
416	416	SECTION 2.11. The following provisions of the Tax Code are
417	417	repealed:
418	418	(1) Section 23.55;
419	419	(2) Sections 23.58(c) and (d);
420	420	(3) Section 23.76; and
421	421	(4) Section 23.9807.
422	422	SECTION 2.12. The repeal of Sections 23.55, 23.76, and
423	423	23.9807, Tax Code, by this Act does not affect an additional tax
424	424	imposed as a result of a change of use of land appraised under
425	425	Subchapter D, E, or H, Chapter 23, Tax Code, that occurred before
426	426	the effective date of this Act, and the former law is continued in
427	427	effect for purposes of that tax.
428	428	ARTICLE 3. EFFECTIVE DATE
429	429	SECTION 3.01. (a) Except as otherwise provided by this
430	430	section, this Act takes effect January 1, 2018.
431	431	(b) Article 1 of this Act takes effect only if the
432	432	constitutional amendment proposed by the 85th Legislature, Regular
433	433	Session, 2017, repealing the provision which subjects land
434	434	designated for agricultural use to an additional tax when the land
435	435	is diverted to a purpose other than agricultural use or sold is
436	436	approved by the voters. If that amendment is not approved by the
437	437	voters, Article 1 of this Act has no effect.
438	438	(c) Article 2 of this Act takes effect only if Article 1 of
439	439	this Act does not take effect. If Article 1 of this Act takes
440	440	effect, Article 2 of this Act has no effect.