Texas House Bill HB231

Texas 2017 - 85th Regular

• Filed: 11/14/16

Caption

Relating to the eligibility of land for appraisal for ad valorem tax purposes as qualified open-space land.

Impact

The bill introduces new guidelines that would be developed with input from various stakeholders, including representatives from appraisal districts and affected producers. This collaborative approach aims to create conditions under which various agricultural uses, even those considered uncommon, can be appraised under qualified open-space status. Moreover, it sets forth specific criteria for smaller tracts of land under 10 acres used for agricultural production, ensuring they qualify based on new guidelines that consider active management and investment by producers.

Summary

House Bill 231 is aimed at modifying the criteria for land eligibility for appraisal as qualified open-space land, specifically for ad valorem tax purposes in Texas. This bill adjusts the definitions within the Tax Code related to what constitutes qualified open-space land. The updated definition includes not only land devoted to agriculture and timber production but also land employed as an ecological laboratory by educational institutions. This amendment intends to clarify and expand the types of land that can receive favorable tax appraisal status, encouraging diverse agricultural practices and land usage.

Contention

While the intention behind HB231 is to promote agricultural diversity and support ecological efforts, it may lead to differing interpretations of what constitutes qualified open-space land among appraisal districts. This discrepancy could create challenges for landowners seeking to benefit from the tax reductions. The bill's amendments could alleviate or complicate the appraisal process depending on local interpretations of the guidelines, which might lead to disputes over land classifications and tax obligations.