Texas House Bill HB162

Texas 2017 - 85th 1st C.S.

Caption

Relating to liability for the additional tax imposed on land appraised for ad valorem tax purposes as agricultural land if the use of the land changes as a result of a condemnation.

Impact

The implementation of HB 162 would create a significant shift in the liability for additional taxes related to land use changes in Texas. By holding the condemning entity responsible for any extra tax obligations that result from a change in the land's status, the bill effectively shields property owners from unexpected financial repercussions. It assures that those whose land is taken for public use under eminent domain do not face the added pressure of tax penalties that would typically result from such changes. This could incentivize fairer treatment of landowners during condemnation proceedings.

Summary

House Bill 162 addresses the issue of tax liability associated with agricultural land that is subject to condemnation and subsequently changed to nonagricultural use. Specifically, the bill stipulates that if land appraised for ad valorem tax purposes undergoes a change in use due to a condemnation process, the additional taxes incurred will be the responsibility of the condemning entity, not the original property owner. This legislative change aims to protect landowners from financial burdens resulting from government actions that compel the change in use of their property.

Contention

The bill aims to clarify the responsibilities associated with land taxes post-condemnation, which could lead to discussions around its potential impacts on both property owners and governmental bodies. While the bill seeks to protect the rights of property owners, there may be concerns regarding how it will affect the fiscal responsibilities of local governments or the burden on taxpayers at large. Potential opposition could arise based on the fear that absolving property owners of additional tax liability may create financial strains on the public entities conducting the condemnation, impacting their ability to fund other services or projects.