By: Estes S.B. No. 1514
(Darby)
A BILL TO BE ENTITLED
AN ACT
relating to the eligibility of land to continue to be appraised for
ad valorem tax purposes as qualified open-space land if the land
begins to be used for oil and gas operations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 23, Tax Code, is amended by
adding Section 23.524 to read as follows:
Sec. 23.524. OIL AND GAS OPERATIONS ON LAND. The
eligibility of land for appraisal under this subchapter does not
end because a lessee under an oil and gas lease begins conducting
oil and gas operations over which the Railroad Commission of Texas
has jurisdiction on the land if the portion of the land on which oil
and gas operations are not being conducted otherwise continues to
qualify for appraisal under this subchapter.
SECTION 2. The change in law made by this Act does not
affect an additional tax imposed as a result of a change of use of
land appraised under Subchapter D, Chapter 23, Tax Code, that
occurred before the effective date of this Act.
SECTION 3. This Act takes effect on the date on which the
constitutional amendment proposed by the 85th Legislature, Regular
Session, 2017, authorizing the legislature to provide that the
eligibility of open-space land for ad valorem taxation on the basis
of its productive capacity does not end because an oil and gas
lessee begins conducting oil and gas operations on the land if the
land otherwise continues to be devoted to farm, ranch, or wildlife
management purposes or timber production is approved by the voters.
If that amendment is not approved by the voters, this Act has no
effect.