By: Ashby, et al. (Senate Sponsor - Nichols) H.B. No. 1409
(In the Senate - Received from the House April 11, 2019;
April 15, 2019, read first time and referred to Committee on
Property Tax; April 29, 2019, reported favorably by the following
vote: Yeas 5, Nays 0; April 29, 2019, sent to printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to the qualification of land for appraisal for ad valorem
tax purposes as timber land or restricted-use timber land.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 23.72, Tax Code, is amended to read as
follows:
Sec. 23.72. QUALIFICATION FOR PRODUCTIVITY APPRAISAL. (a)
Land qualifies for appraisal as provided by this subchapter if it is
currently and actively devoted principally to production of timber
or forest products to the degree of intensity generally accepted in
the area with intent to produce income and has been devoted
principally to production of timber or forest products or to
agricultural use that would qualify the land for appraisal under
Subchapter C or D [of this chapter] for five of the preceding seven
years.
(b) In determining whether land is currently and actively
devoted principally to the production of timber or forest products
to the degree of intensity generally accepted in an area, a chief
appraiser may not consider the purpose for which a portion of a
parcel of land is used if the portion is:
(1) used for the production of timber or forest
products, including a road, right-of-way, buffer area, or
firebreak; or
(2) subject to a right-of-way that was taken through
the exercise of the power of eminent domain.
(c) For the purpose of the appraisal of land under this
subchapter, a portion of a parcel of land described by Subsection
(b) is considered land that qualifies for appraisal under this
subchapter if the remainder of the parcel of land qualifies for
appraisal under this subchapter.
SECTION 2. Subchapter E, Chapter 23, Tax Code, is amended by
adding Section 23.765 to read as follows:
Sec. 23.765. 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 3. Section 23.9802, Tax Code, is amended by adding
Subsections (d) and (e) to read as follows:
(d) In determining whether land qualifies for appraisal as
provided by this subchapter, a chief appraiser may not consider the
purpose for which a portion of a parcel of land is used if the
portion is:
(1) used for the production of timber or forest
products, including a road, right-of-way, buffer area, or
firebreak; or
(2) subject to a right-of-way that was taken through
the exercise of the power of eminent domain.
(e) For the purpose of the appraisal of land under this
subchapter, a portion of a parcel of land described by Subsection
(d) is considered land that qualifies for appraisal under this
subchapter if the remainder of the parcel of land qualifies for
appraisal under this subchapter.
SECTION 4. Subchapter H, Chapter 23, Tax Code, is amended by
adding Section 23.9808 to read as follows:
Sec. 23.9808. 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 5. (a) Sections 23.72 and 23.9802, Tax Code, as
amended by this Act, apply only to the appraisal of land for ad
valorem tax purposes for a tax year that begins on or after the
effective date of this Act.
(b) Sections 23.765 and 23.9808, Tax Code, as added by this
Act, do not affect an additional tax imposed as a result of a change
of use of land appraised under Subchapter E or H, Chapter 23, Tax
Code, that occurred before the effective date of this Act.
SECTION 6. This Act takes effect September 1, 2019.
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