87R9910 DRS-D
By: Rogers, Shine, King of Hemphill H.B. No. 4004
A BILL TO BE ENTITLED
AN ACT
relating to a study by Texas A&M University of the appraisal of
agricultural land for ad valorem tax purposes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. STUDY ON TAX APPRAISAL OF AGRICULTURAL LAND. (a)
The president of Texas A&M University shall designate a department
or entity at the university to conduct a study of the methods and
procedures for appraising agricultural land for ad valorem tax
purposes.
(b) The study must consider the feasibility and effect of:
(1) authorizing the comptroller of public accounts to
accept actual agricultural production data, including data
regarding expenses and income from production of crops and
livestock, from an appraisal district in developing rules for the
appraisal of agricultural land for ad valorem tax purposes;
(2) determining net to land value by averaging the
annual net income that a class of land would likely generate over a
10-year period;
(3) requiring all of the production expenses incurred
by a property owner and a tenant, regardless of whether the expenses
are shared expenses between the property owner and the tenant, to be
considered when appraising agricultural land;
(4) requiring a person appraising agricultural land
for taxation to have knowledge and experience in agricultural land
valuation; and
(5) requiring each appraisal review board to have
equal membership from rural and non-rural areas.
SECTION 2. REPORT. Not later than January 1, 2023, Texas
A&M University shall submit a report on the results of the study to
the lieutenant governor, the speaker of the house of
representatives, and each standing committee of the legislature
with jurisdiction over agricultural matters.
SECTION 3. EXPIRATION. This Act expires September 1, 2023.
SECTION 4. EFFECTIVE DATE. This Act takes effect
immediately if it receives a vote of two-thirds of all the members
elected to each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
immediate effect, this Act takes effect September 1, 2021.