Texas House Bill HB794

Texas 2019 - 86th Regular

Caption

Relating to the repeal of the additional ad valorem taxes imposed as a result of certain changes in the use of open-space land appraised as agricultural land.

Impact

The repeal is likely to have considerable effects on state taxation laws and revenue structures, given that agricultural land has specific tax incentives designed to maintain its use. By removing the additional taxation that occurs due to changes in property use, the bill could encourage landowners to switch their land use without the anticipated tax penalties. This change may foster greater flexibility in land use, aligning with broader agricultural and economic policies aimed at optimizing land resources within Texas.

Summary

House Bill 794 proposes the repeal of additional ad valorem taxes imposed when there are changes in the use of land that was appraised as agricultural land. This legislative initiative is significant as it aims to alleviate financial burdens on property owners who may change the use of their land from agricultural to non-agricultural purposes. The provisions in the bill suggest that the current system of taxing these property transitions can be burdensome, particularly for individuals who rely on agricultural appraisals for their livelihood.

Contention

However, the bill is not without points of contention. Opponents may argue that repealing these additional taxes could have implications for local government funding, as property taxes are a primary source of revenue for municipalities. There may be concerns about whether this legislative change adequately addresses the need for state support to assist local governments in adjusting to potential revenue losses. Furthermore, some may contend that agricultural land should still be subject to specific tax regulations to maintain fairness in the broader real estate market.