By: Rodriguez, Murphy, Guillen, Zwiener H.B. No. 97
A BILL TO BE ENTITLED
AN ACT
relating to the eligibility of land for appraisal for ad valorem tax
purposes as qualified open-space land.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 23.51(1) and (2), Tax Code, are amended
to read as follows:
(1) "Qualified open-space land" means land that is
currently devoted principally to agricultural use to the degree of
intensity generally accepted in the area and that has been devoted
principally to agricultural use or to production of timber or
forest products for five of the preceding seven years or land that
is used principally as an ecological laboratory by a public or
private college or university and that has been used principally in
that manner by a college or university for five of the preceding
seven years. A chief appraiser shall distinguish between the
degree of intensity required for various agricultural production
methods, including organic, sustainable, pastured poultry,
rotational grazing, and other uncommon production methods or
systems. Qualified open-space land includes all appurtenances to
the land. For the purposes of this subdivision, appurtenances to
the land means private roads, dams, reservoirs, water wells,
canals, ditches, terraces, and other reshapings of the soil,
fences, and riparian water rights. Notwithstanding the other
provisions of this subdivision, land that is currently devoted
principally to wildlife management as defined by Subdivision (7)(B)
or (C) to the degree of intensity generally accepted in the area
qualifies for appraisal as qualified open-space land under this
subchapter regardless of the manner in which the land was used in
any preceding year.
(2) "Agricultural use" includes but is not limited to
the following activities: cultivating the soil, producing crops
for human food, animal feed, or planting seed or for the production
of fibers; producing fruits and vegetables; floriculture,
viticulture, and horticulture; raising or keeping livestock;
raising or keeping exotic animals for the production of human food
or of fiber, leather, pelts, or other tangible products having a
commercial value; planting cover crops or leaving land idle for the
purpose of participating in a governmental program, provided the
land is not used for residential purposes or a purpose inconsistent
with agricultural use; and planting cover crops or leaving land
idle in conjunction with normal crop or livestock rotation
procedure. The term also includes the use of land to produce or
harvest logs and posts for the use in constructing or repairing
fences, pens, barns, or other agricultural improvements on adjacent
qualified open-space land having the same owner and devoted to a
different agricultural use. The term also includes the use of land
for wildlife management. The term also includes the use of land to
raise or keep bees for pollination or for the production of human
food or other tangible products having a commercial value, provided
that the land used is not less than 5 or more than 20 acres.
SECTION 2. Subchapter D, Chapter 23, Tax Code, is amended by
adding Section 23.5211 to read as follows:
Sec. 23.5211. LIMITATION ON QUALIFICATION OF CERTAIN LAND
FOR APPRAISAL BASED ON WILDLIFE MANAGEMENT USE. Land equal to or
less than 20 acres in size that qualifies for appraisal under this
subchapter solely on the basis that the land is used to raise or
keep bees for pollination or for the production of human food or
other tangible products having a commercial value may not
subsequently qualify under Section 23.51(7) for appraisal under
this subchapter if the owner changes the use of the land to wildlife
management.
SECTION 3. Subchapter D, Chapter 23, Tax Code, is amended by
adding Section 23.5215 to read as follows:
Sec. 23.5215. GUIDELINES FOR UNCOMMON AGRICULTURAL USES.
(a) The comptroller, in consultation with the chair of the house of
representatives committee on agriculture and livestock, Texas A&M
AgriLife Extension Service, individuals selected by the
comptroller who represent appraisal districts, and individuals
selected by the comptroller who represent affected producers, shall
develop guidelines for determining under what conditions the
cumulative effect of multiple agricultural uses of a tract of land
meets the degree of intensity generally accepted in the area.
(b) The comptroller, in consultation with the chair of the
house of representatives committee on agriculture and livestock,
Texas A&M AgriLife Extension Service, individuals selected by the
comptroller who represent appraisal districts, and individuals
selected by the comptroller who represent small-scale producers,
shall develop guidelines for determining under what conditions land
under 10 acres in size used for the production of fruits,
vegetables, poultry, hogs, sheep, or goats qualifies for appraisal
under this subchapter. The guidelines must provide that land under
10 acres in size that qualifies for appraisal under this subchapter
solely on the basis of the guidelines developed under this section
may not subsequently qualify under Section 23.51(7) for appraisal
under this subchapter if the owner changes the use of the land to
wildlife management.
(c) The guidelines developed under this section may include
recordkeeping requirements consistent with normal practices of
agricultural operations.
(d) The comptroller in developing guidelines under this
section may consider the following factors:
(1) the financial investment of a producer in an
agricultural use of a tract of land;
(2) the degree of active management of a producer in
the agricultural use of a tract of land;
(3) the percentage of a tract of land used by a
producer for agricultural uses; and
(4) any other factor the comptroller considers
appropriate.
(e) The comptroller, in cooperation with appraisal
districts, shall provide educational resources to chief appraisers
to assist with the appraisal of land using the guidelines developed
under this section and of land using an uncommon production method,
such as organic production, sustainable production, and pastured
poultry.
SECTION 4. This section applies only to land that first
qualified for appraisal under Subchapter D, Chapter 23, Tax Code,
on the basis of its use as an ecological laboratory in the 2014,
2015, 2016, 2017, 2018, 2019, or 2020 tax year. The change in law
made by this Act to Section 23.51(1), Tax Code, relating to the
qualification of land as an ecological laboratory for appraisal
under Subchapter D, Chapter 23, Tax Code, applies to land to which
this section applies beginning with the tax year that begins
January 1, 2027. For the 2021, 2022, 2023, 2024, 2025, and 2026 tax
years, the qualification of land to which this section applies for
appraisal under Subchapter D, Chapter 23, Tax Code, on the basis of
its use as an ecological laboratory is governed by the law as it
existed immediately before the effective date of this Act, and the
former law is continued in effect for that purpose.
SECTION 5. Section 23.5211, Tax Code, as added by this Act,
applies only to land that did not qualify for appraisal under
Subchapter D, Chapter 23, Tax Code, for the 2019 tax year on the
basis of its use for wildlife management under Section 23.51(7),
Tax Code.
SECTION 6. Not later than September 1, 2020, the
comptroller shall distribute the guidelines required by Section
23.5215, Tax Code, as added by this Act, to each appraisal district.
SECTION 7. Section 23.51, Tax Code, as amended by this Act,
and Section 23.5215, Tax Code, as added by this Act, apply only to
the appraisal of land for ad valorem tax purposes for a tax year
that begins on or after January 1, 2021.
SECTION 8. This Act takes effect September 1, 2019.