Texas House Bill HB2288

Texas 2021 - 87th Regular

Caption

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

Impact

The repeal of these additional taxes may significantly enhance the financial viability for landowners, particularly those over the age of 65 who are often at risk of facing higher tax burdens during property transitions. As a result, landowners could experience increased ability to sell their land or repurpose it without incurring hefty additional costs, fostering more fluid property markets and potentially benefitting agricultural productivity. However, this change could also affect county and local revenues that rely on these tax assessments.

Summary

House Bill 2288 aims to repeal additional ad valorem taxes that are currently imposed on agricultural or open-space land when there is a sale or a change in the use of such land. The bill focuses on amending the Texas Tax Code specifically regarding provisions that lead to these additional taxes upon the reclassification of the land. This could greatly affect property owners who utilize their land for agricultural purposes and intend to sell or change its usage, as it seeks to alleviate the financial burden placed on these transactions.

Contention

One notable point of contention surrounding HB2288 is the balance between maintaining local government revenue sources and supporting agricultural landowners. Proponents of the bill argue that unnecessary financial penalties on property change can inhibit landowners from making beneficial decisions about their property, while opponents may worry about the diminishing tax base available for local governments, which could lead to reductions in funding for essential public services. Additionally, there are concerns regarding possible changes in land use that could emerge from easing these tax burdens.