Texas Senate Bill SB48

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 provisions of SB 48 are crucial for landowners who may face financial repercussions from the change of land use driven by condemnation. By placing the burden of additional taxes on the condemning authority, the bill seeks to ensure that property owners are not unduly penalized for decisions made by governmental entities that they may not have control over. As a result, this legislation attempts to foster a more equitable situation for those affected by compulsory land acquisition for public projects.

Summary

Senate Bill 48 addresses the issue of tax liability concerning agricultural land that undergoes a change in use due to condemnation. Specifically, the bill amends Section 23.46 of the Texas Tax Code to state that if land that was assessed for ad valorem taxes as agricultural is transitioned to a non-agricultural use as a result of condemnation, the responsibility for any additional taxes and interest will fall on the condemning entity rather than the original property owner. This legislative move aims to protect landowners from unexpected tax liabilities stemming from governmental actions.

Contention

Discussions surrounding SB 48 may reveal a tension between the need for government to carry out public projects that may require the condemnation of private land, and the rights of landowners to be protected from financial penalties associated with such actions. Opponents of the bill might argue that by providing this form of protection to landowners, it creates potential obstacles for public development projects, complicating the process of acquiring land necessary for infrastructure improvements or public use. The balance between individual property rights and the needs of the community at large will continue to be a significant area of debate as this bill advances.