Texas 2021 - 87th Regular

Texas House Bill HB2288 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	87R4696 SMT-D
2	2	By: White H.B. No. 2288
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the repeal of the additional ad valorem taxes imposed as
8	8	a result of the sale or change in the use of land appraised as
9	9	agricultural or open-space land.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	ARTICLE 1. REPEAL OF ADDITIONAL TAX PROVISIONS IN SUBCHAPTERS C AND
12	12	D, CHAPTER 23, TAX CODE
13	13	SECTION 1.01. Section 1.07(d), Tax Code, is amended to read
14	14	as follows:
15	15	(d) A notice required by Section 11.43(q), 11.45(d),
16	16	23.44(d), [23.46(c) or (f),] 23.54(e), 23.541(c), [23.55(e),]
17	17	23.551(a), 23.57(d), 23.76(e), 23.79(d), or 23.85(d) must be sent
18	18	by certified mail.
19	19	SECTION 1.02. Section 23.20(g), Tax Code, is amended to
20	20	read as follows:
21	21	(g) A waiver of a special appraisal of property under
22	22	Subchapter [C, D,] E, F, or G of this chapter does not constitute a
23	23	change of use of the property or diversion of the property to
24	24	another use for purposes of the imposition of additional taxes
25	25	under any of those subchapters.
26	26	SECTION 1.03. Section 23.52(e), Tax Code, is amended to
27	27	read as follows:
28	28	(e) The [For the purposes of Section 23.55 of this code,
29	29	the] chief appraiser [also] shall determine the market value of
30	30	qualified open-space land and shall record both the market value
31	31	and the appraised value in the appraisal records.
32	32	SECTION 1.04. Section 23.524(e), Tax Code, is amended to
33	33	read as follows:
34	34	(e) Notwithstanding Subsection (b) or (c), the eligibility
35	35	of [For the purposes of this subchapter, a change of use of the]
36	36	land subject to this section for appraisal under this subchapter is
37	37	considered to have ended [occurred] on the day the period
38	38	prescribed by Subsection (c) begins if the owner has not fully
39	39	complied with the terms of the agreement described by Subsection
40	40	(b) on the date the agreement ends.
41	41	SECTION 1.05. Sections 23.551(a) and (d), Tax Code, are
42	42	amended to read as follows:
43	43	(a) If land appraised as provided by this subchapter is
44	44	owned by an individual 65 years of age or older, before making a
45	45	determination that [a change in use of] the land is no longer
46	46	eligible for appraisal under this subchapter [has occurred], the
47	47	chief appraiser shall deliver a written notice to the owner stating
48	48	that the chief appraiser believes [a change in use of] the land may
49	49	no longer be eligible for appraisal under this subchapter [have
50	50	occurred].
51	51	(d) If the chief appraiser does not receive a response on or
52	52	before the 60th day after the date the notice is mailed, the chief
53	53	appraiser must make a reasonable effort to locate the owner and
54	54	determine whether the land remains eligible to be appraised as
55	55	provided by this subchapter before determining that [a change in
56	56	use of] the land is no longer eligible for appraisal under this
57	57	subchapter [has occurred].
58	58	SECTION 1.06. Section 31.01(c), Tax Code, is amended to
59	59	read as follows:
60	60	(c) The tax bill or a separate statement accompanying the
61	61	tax bill shall:
62	62	(1) identify the property subject to the tax;
63	63	(2) state the appraised value, assessed value, and
64	64	taxable value of the property;
65	65	(3) if the property is land appraised as provided by
66	66	Subchapter C, D, E, or H, Chapter 23, state the market value of the
67	67	land [and the taxable value for purposes of deferred or additional
68	68	taxation as provided by Section 23.46, 23.55, 23.76, or 23.9807, as
69	69	applicable];
70	70	(4) state the assessment ratio for the taxing unit;
71	71	(5) state the type and amount of any partial exemption
72	72	applicable to the property, indicating whether it applies to
73	73	appraised or assessed value;
74	74	(6) state the total tax rate for the taxing unit;
75	75	(7) state the amount of tax due, the due date, and the
76	76	delinquency date;
77	77	(8) explain the payment option and discounts provided
78	78	by Sections 31.03 and 31.05, if available to the taxing unit's
79	79	taxpayers, and state the date on which each of the discount periods
80	80	provided by Section 31.05 concludes, if the discounts are
81	81	available;
82	82	(9) state the rates of penalty and interest imposed
83	83	for delinquent payment of the tax;
84	84	(10) include the name and telephone number of the
85	85	assessor for the taxing unit and, if different, of the collector for
86	86	the taxing unit;
87	87	(11) for real property, state for the current tax year
88	88	and each of the preceding five tax years:
89	89	(A) the appraised value and taxable value of the
90	90	property;
91	91	(B) the total tax rate for the taxing unit;
92	92	(C) the amount of taxes imposed on the property
93	93	by the taxing unit; and
94	94	(D) the difference, expressed as a percent
95	95	increase or decrease, as applicable, in the amount of taxes imposed
96	96	on the property by the taxing unit compared to the amount imposed
97	97	for the preceding tax year; and
98	98	(12) for real property, state the differences,
99	99	expressed as a percent increase or decrease, as applicable, in the
100	100	following for the current tax year as compared to the fifth tax year
101	101	before that tax year:
102	102	(A) the appraised value and taxable value of the
103	103	property;
104	104	(B) the total tax rate for the taxing unit; and
105	105	(C) the amount of taxes imposed on the property
106	106	by the taxing unit.
107	107	SECTION 1.07. Section 41.41(a), Tax Code, is amended to
108	108	read as follows:
109	109	(a) A property owner is entitled to protest before the
110	110	appraisal review board the following actions:
111	111	(1) determination of the appraised value of the
112	112	owner's property or, in the case of land appraised as provided by
113	113	Subchapter C, D, E, or H, Chapter 23, determination of its appraised
114	114	or market value;
115	115	(2) unequal appraisal of the owner's property;
116	116	(3) inclusion of the owner's property on the appraisal
117	117	records;
118	118	(4) denial to the property owner in whole or in part of
119	119	a partial exemption;
120	120	(5) determination that the owner's land does not
121	121	qualify for appraisal as provided by Subchapter C, D, E, or H,
122	122	Chapter 23;
123	123	(6) identification of the taxing units in which the
124	124	owner's property is taxable in the case of the appraisal district's
125	125	appraisal roll;
126	126	(7) determination that the property owner is the owner
127	127	of property;
128	128	(8) [a] determination that a change in use of land
129	129	appraised under Subchapter [C, D,] E [,] or H, Chapter 23, has
130	130	occurred; or
131	131	(9) any other action of the chief appraiser, appraisal
132	132	district, or appraisal review board that applies to and adversely
133	133	affects the property owner.
134	134	SECTION 1.08. Section 41.44(a), Tax Code, is amended to
135	135	read as follows:
136	136	(a) Except as provided by Subsections (b), (c), (c-1), and
137	137	(c-2), to be entitled to a hearing and determination of a protest,
138	138	the property owner initiating the protest must file a written
139	139	notice of the protest with the appraisal review board having
140	140	authority to hear the matter protested:
141	141	(1) not later than May 15 or the 30th day after the
142	142	date that notice to the property owner was delivered to the property
143	143	owner as provided by Section 25.19, whichever is later;
144	144	(2) in the case of a protest of a change in the
145	145	appraisal records ordered as provided by Subchapter A of this
146	146	chapter or by Chapter 25, not later than the 30th day after the date
147	147	notice of the change is delivered to the property owner;
148	148	(3) in the case of a determination that a change in the
149	149	use of land appraised under Subchapter [C, D,] E [,] or H, Chapter
150	150	23, has occurred, not later than the 30th day after the date the
151	151	notice of the determination is delivered to the property owner;
152	152	(4) in the case of a determination of eligibility for a
153	153	refund under Section 23.1243, not later than the 30th day after the
154	154	date the notice of the determination is delivered to the property
155	155	owner; or
156	156	(5) in the case of a protest of the modification or
157	157	denial of an application for an exemption under Section 11.35, or
158	158	the determination of an appropriate damage assessment rating for an
159	159	item of qualified property under that section, not later than the
160	160	30th day after the date the property owner receives the notice
161	161	required under Section 11.45(e).
162	162	SECTION 1.09. Section 60.022, Agriculture Code, is amended
163	163	to read as follows:
164	164	Sec. 60.022. CONTENTS OF PETITION. A petition filed under
165	165	Section 60.021 must:
166	166	(1) describe the boundaries of the proposed district
167	167	by metes and bounds or by lot and block number, if there is a
168	168	recorded map or plat and survey of the area;
169	169	(2) include a name for the proposed district, which
170	170	must include the term "Agricultural Development District";
171	171	(3) be signed by the landowners of any land to be
172	172	included within the proposed district and provide an acknowledgment
173	173	consistent with Section 121.001, Civil Practice and Remedies Code,
174	174	that the landowners desire the land to be included in the district;
175	175	(4) include the names of at least five persons who are
176	176	willing and qualified to serve as temporary directors of the
177	177	district;
178	178	(5) name each county in which any agricultural
179	179	facilities to be owned by the district are to be located;
180	180	(6) name each municipality in which any part of the
181	181	district is to be located;
182	182	(7) state the general nature of the proposed
183	183	development and the cost of the development as then estimated by the
184	184	petitioners;
185	185	(8) state the necessity and feasibility of the
186	186	proposed district and whether the district will serve the public
187	187	purpose of furthering agricultural interests;
188	188	(9) include a pledge that the district will make
189	189	payments in lieu of taxes to any school district and county in which
190	190	any real property to be owned by the district is located, in [as
191	191	follows:
192	192	[(A)] annual payments to each entity that are
193	193	equal to the amount of taxes imposed on the real property by the
194	194	entity in the year of the district's creation; and
195	195	[(B) a payment to each entity equal to the amount
196	196	that would be due under Section 23.55, Tax Code, on the district's
197	197	date of creation; and]
198	198	(10) include a pledge that, if the district employs
199	199	more than 50 persons, the district will make payments in lieu of
200	200	taxes to any school district, in addition to those made under
201	201	Subdivision (9), in an amount negotiated between the district and
202	202	the school district.
203	203	SECTION 1.10. Section 21.0421(e), Property Code, is amended
204	204	to read as follows:
205	205	(e) This section does not[:
206	206	[(1)] authorize groundwater rights appraised
207	207	separately from the real property under this section to be
208	208	appraised separately from real property for property tax appraisal
209	209	purposes[; or
210	210	[(2) subject real property condemned for the purpose
211	211	described by Subsection (a) to an additional tax as provided by
212	212	Section 23.46 or 23.55, Tax Code].
213	213	SECTION 1.11. The following provisions of the Tax Code are
214	214	repealed:
215	215	(1) Section 23.46;
216	216	(2) Sections 23.47(c) and (d);
217	217	(3) Section 23.55; and
218	218	(4) Sections 23.58(c) and (d).
219	219	SECTION 1.12. The repeal of Sections 23.46 and 23.55, Tax
220	220	Code, by this Act does not affect an additional tax imposed as a
221	221	result of a sale or change of use of land appraised under Subchapter
222	222	C or D, Chapter 23, Tax Code, that occurred before the effective
223	223	date of this Act, and the former law is continued in effect for
224	224	purposes of that tax.
225	225	ARTICLE 2. REPEAL OF ADDITIONAL TAX PROVISIONS IN SUBCHAPTER D,
226	226	CHAPTER 23, TAX CODE
227	227	SECTION 2.01. Section 1.07(d), Tax Code, is amended to read
228	228	as follows:
229	229	(d) A notice required by Section 11.43(q), 11.45(d),
230	230	23.44(d), 23.46(c) or (f), 23.54(e), 23.541(c), [23.55(e),]
231	231	23.551(a), 23.57(d), 23.76(e), 23.79(d), or 23.85(d) must be sent
232	232	by certified mail.
233	233	SECTION 2.02. Section 23.20(g), Tax Code, is amended to
234	234	read as follows:
235	235	(g) A waiver of a special appraisal of property under
236	236	Subchapter C, [D,] E, F, or G of this chapter does not constitute a
237	237	change of use of the property or diversion of the property to
238	238	another use for purposes of the imposition of additional taxes
239	239	under any of those subchapters.
240	240	SECTION 2.03. Section 23.52(e), Tax Code, is amended to
241	241	read as follows:
242	242	(e) The [For the purposes of Section 23.55 of this code,
243	243	the] chief appraiser [also] shall determine the market value of
244	244	qualified open-space land and shall record both the market value
245	245	and the appraised value in the appraisal records.
246	246	SECTION 2.04. Section 23.524(e), Tax Code, is amended to
247	247	read as follows:
248	248	(e) Notwithstanding Subsection (b) or (c), the eligibility
249	249	of [For the purposes of this subchapter, a change of use of the]
250	250	land subject to this section for appraisal under this subchapter is
251	251	considered to have ended [occurred] on the day the period
252	252	prescribed by Subsection (c) begins if the owner has not fully
253	253	complied with the terms of the agreement described by Subsection
254	254	(b) on the date the agreement ends.
255	255	SECTION 2.05. Sections 23.551(a) and (d), Tax Code, are
256	256	amended to read as follows:
257	257	(a) If land appraised as provided by this subchapter is
258	258	owned by an individual 65 years of age or older, before making a
259	259	determination that [a change in use of] the land is no longer
260	260	eligible for appraisal under this subchapter [has occurred], the
261	261	chief appraiser shall deliver a written notice to the owner stating
262	262	that the chief appraiser believes [a change in use of] the land may
263	263	no longer be eligible for appraisal under this subchapter [have
264	264	occurred].
265	265	(d) If the chief appraiser does not receive a response on or
266	266	before the 60th day after the date the notice is mailed, the chief
267	267	appraiser must make a reasonable effort to locate the owner and
268	268	determine whether the land remains eligible to be appraised as
269	269	provided by this subchapter before determining that [a change in
270	270	use of] the land is no longer eligible for appraisal under this
271	271	subchapter [has occurred].
272	272	SECTION 2.06. Section 31.01(c), Tax Code, is amended to
273	273	read as follows:
274	274	(c) The tax bill or a separate statement accompanying the
275	275	tax bill shall:
276	276	(1) identify the property subject to the tax;
277	277	(2) state the appraised value, assessed value, and
278	278	taxable value of the property;
279	279	(3) if the property is land appraised as provided by
280	280	Subchapter C, D, E, or H, Chapter 23, state the market value of the
281	281	land [and the taxable value for purposes of deferred or additional
282	282	taxation as provided by Section 23.46, 23.55, 23.76, or 23.9807, as
283	283	applicable];
284	284	(4) state the assessment ratio for the taxing unit;
285	285	(5) state the type and amount of any partial exemption
286	286	applicable to the property, indicating whether it applies to
287	287	appraised or assessed value;
288	288	(6) state the total tax rate for the taxing unit;
289	289	(7) state the amount of tax due, the due date, and the
290	290	delinquency date;
291	291	(8) explain the payment option and discounts provided
292	292	by Sections 31.03 and 31.05, if available to the taxing unit's
293	293	taxpayers, and state the date on which each of the discount periods
294	294	provided by Section 31.05 concludes, if the discounts are
295	295	available;
296	296	(9) state the rates of penalty and interest imposed
297	297	for delinquent payment of the tax;
298	298	(10) include the name and telephone number of the
299	299	assessor for the taxing unit and, if different, of the collector for
300	300	the taxing unit;
301	301	(11) for real property, state for the current tax year
302	302	and each of the preceding five tax years:
303	303	(A) the appraised value and taxable value of the
304	304	property;
305	305	(B) the total tax rate for the taxing unit;
306	306	(C) the amount of taxes imposed on the property
307	307	by the taxing unit; and
308	308	(D) the difference, expressed as a percent
309	309	increase or decrease, as applicable, in the amount of taxes imposed
310	310	on the property by the taxing unit compared to the amount imposed
311	311	for the preceding tax year; and
312	312	(12) for real property, state the differences,
313	313	expressed as a percent increase or decrease, as applicable, in the
314	314	following for the current tax year as compared to the fifth tax year
315	315	before that tax year:
316	316	(A) the appraised value and taxable value of the
317	317	property;
318	318	(B) the total tax rate for the taxing unit; and
319	319	(C) the amount of taxes imposed on the property
320	320	by the taxing unit.
321	321	SECTION 2.07. Section 41.41(a), Tax Code, is amended to
322	322	read as follows:
323	323	(a) A property owner is entitled to protest before the
324	324	appraisal review board the following actions:
325	325	(1) determination of the appraised value of the
326	326	owner's property or, in the case of land appraised as provided by
327	327	Subchapter C, D, E, or H, Chapter 23, determination of its appraised
328	328	or market value;
329	329	(2) unequal appraisal of the owner's property;
330	330	(3) inclusion of the owner's property on the appraisal
331	331	records;
332	332	(4) denial to the property owner in whole or in part of
333	333	a partial exemption;
334	334	(5) determination that the owner's land does not
335	335	qualify for appraisal as provided by Subchapter C, D, E, or H,
336	336	Chapter 23;
337	337	(6) identification of the taxing units in which the
338	338	owner's property is taxable in the case of the appraisal district's
339	339	appraisal roll;
340	340	(7) determination that the property owner is the owner
341	341	of property;
342	342	(8) [a] determination that a change in use of land
343	343	appraised under Subchapter C, [D,] E, or H, Chapter 23, has
344	344	occurred; or
345	345	(9) any other action of the chief appraiser, appraisal
346	346	district, or appraisal review board that applies to and adversely
347	347	affects the property owner.
348	348	SECTION 2.08. Section 41.44(a), Tax Code, is amended to
349	349	read as follows:
350	350	(a) Except as provided by Subsections (b), (c), (c-1), and
351	351	(c-2), to be entitled to a hearing and determination of a protest,
352	352	the property owner initiating the protest must file a written
353	353	notice of the protest with the appraisal review board having
354	354	authority to hear the matter protested:
355	355	(1) not later than May 15 or the 30th day after the
356	356	date that notice to the property owner was delivered to the property
357	357	owner as provided by Section 25.19, whichever is later;
358	358	(2) in the case of a protest of a change in the
359	359	appraisal records ordered as provided by Subchapter A of this
360	360	chapter or by Chapter 25, not later than the 30th day after the date
361	361	notice of the change is delivered to the property owner;
362	362	(3) in the case of a determination that a change in the
363	363	use of land appraised under Subchapter C, [D,] E, or H, Chapter 23,
364	364	has occurred, not later than the 30th day after the date the notice
365	365	of the determination is delivered to the property owner;
366	366	(4) in the case of a determination of eligibility for a
367	367	refund under Section 23.1243, not later than the 30th day after the
368	368	date the notice of the determination is delivered to the property
369	369	owner; or
370	370	(5) in the case of a protest of the modification or
371	371	denial of an application for an exemption under Section 11.35, or
372	372	the determination of an appropriate damage assessment rating for an
373	373	item of qualified property under that section, not later than the
374	374	30th day after the date the property owner receives the notice
375	375	required under Section 11.45(e).
376	376	SECTION 2.09. Section 60.022, Agriculture Code, is amended
377	377	to read as follows:
378	378	Sec. 60.022. CONTENTS OF PETITION. A petition filed under
379	379	Section 60.021 must:
380	380	(1) describe the boundaries of the proposed district
381	381	by metes and bounds or by lot and block number, if there is a
382	382	recorded map or plat and survey of the area;
383	383	(2) include a name for the proposed district, which
384	384	must include the term "Agricultural Development District";
385	385	(3) be signed by the landowners of any land to be
386	386	included within the proposed district and provide an acknowledgment
387	387	consistent with Section 121.001, Civil Practice and Remedies Code,
388	388	that the landowners desire the land to be included in the district;
389	389	(4) include the names of at least five persons who are
390	390	willing and qualified to serve as temporary directors of the
391	391	district;
392	392	(5) name each county in which any agricultural
393	393	facilities to be owned by the district are to be located;
394	394	(6) name each municipality in which any part of the
395	395	district is to be located;
396	396	(7) state the general nature of the proposed
397	397	development and the cost of the development as then estimated by the
398	398	petitioners;
399	399	(8) state the necessity and feasibility of the
400	400	proposed district and whether the district will serve the public
401	401	purpose of furthering agricultural interests;
402	402	(9) include a pledge that the district will make
403	403	payments in lieu of taxes to any school district and county in which
404	404	any real property to be owned by the district is located, in [as
405	405	follows:
406	406	[(A)] annual payments to each entity that are
407	407	equal to the amount of taxes imposed on the real property by the
408	408	entity in the year of the district's creation; and
409	409	[(B) a payment to each entity equal to the amount
410	410	that would be due under Section 23.55, Tax Code, on the district's
411	411	date of creation; and]
412	412	(10) include a pledge that, if the district employs
413	413	more than 50 persons, the district will make payments in lieu of
414	414	taxes to any school district, in addition to those made under
415	415	Subdivision (9), in an amount negotiated between the district and
416	416	the school district.
417	417	SECTION 2.10. Section 21.0421(e), Property Code, is amended
418	418	to read as follows:
419	419	(e) This section does not:
420	420	(1) authorize groundwater rights appraised separately
421	421	from the real property under this section to be appraised
422	422	separately from real property for property tax appraisal purposes;
423	423	or
424	424	(2) subject real property condemned for the purpose
425	425	described by Subsection (a) to an additional tax as provided by
426	426	Section 23.46 [or 23.55], Tax Code.
427	427	SECTION 2.11. The following provisions of the Tax Code are
428	428	repealed:
429	429	(1) Section 23.55; and
430	430	(2) Sections 23.58(c) and (d).
431	431	SECTION 2.12. The repeal of Section 23.55, Tax Code, by this
432	432	Act does not affect an additional tax imposed as a result of a
433	433	change of use of land appraised under Subchapter D, Chapter 23, Tax
434	434	Code, that occurred before the effective date of this Act, and the
435	435	former law is continued in effect for purposes of that tax.
436	436	ARTICLE 3. EFFECTIVE DATE
437	437	SECTION 3.01. (a) Except as otherwise provided by this
438	438	section, this Act takes effect January 1, 2022.
439	439	(b) Article 1 of this Act takes effect only if the
440	440	constitutional amendment proposed by the 87th Legislature, Regular
441	441	Session, 2021, repealing the provision that subjects land
442	442	designated for agricultural use to an additional tax when the land
443	443	is diverted to a purpose other than agricultural use or sold is
444	444	approved by the voters. If that amendment is not approved by the
445	445	voters, Article 1 of this Act has no effect.
446	446	(c) Article 2 of this Act takes effect only if Article 1 of
447	447	this Act does not take effect. If Article 1 of this Act takes
448	448	effect, Article 2 of this Act has no effect.