Texas House Bill HB1970

Texas 2019 - 86th Regular

Caption

Relating to the additional tax imposed on land appraised for ad valorem tax purposes as qualified open-space land if a change in use of the land occurs.

Impact

The bill has significant implications for property tax law in Texas, particularly concerning how open-space land is managed. It aims to discourage landowners from converting open-space land to other uses without considering the tax consequences. This may help maintain certain land conservation efforts while ensuring that property taxes reflect actual market value upon changes in land use. The intent is to create a stronger financial disincentive for converting protected lands, thereby potentially preserving more open-space resources across the state.

Summary

House Bill 1970 introduces an additional tax on land that is appraised as open-space land if there is a change in the use of that land. Specifically, it amends Section 23.55(a) of the Tax Code, stipulating that when land that has qualified for open-space appraisal changes its use, the property owner will be liable for a tax equivalent to the difference between the taxes imposed on the land for the last two years versus what would have been imposed based on market value. This change aims to ensure that landowners are held accountable for the tax implications of changing the use of their land, which traditionally may have been subsidized under the open-space designation.

Contention

While the bill addresses important fiscal matters, it may also lead to contention. Advocates of open-space preservation argue that any additional financial burden on landowners can disincentivize necessary land management and lead to widespread changes in land use that may not align with local conservation goals. Additionally, there may be concerns regarding how consistently the law can be applied and enforced, raising questions about administrative burdens for local tax assessors and the potential impact on agricultural and rural communities that rely on open-space designations for their livelihoods.