| 4 | 6 | | AN ACT |
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| 5 | 7 | | relating to the qualification of land for appraisal for ad valorem |
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| 6 | 8 | | tax purposes as agricultural land and the liability for the |
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| 7 | 9 | | additional tax imposed on such land if the use of the land changes |
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| 8 | 10 | | as a result of a condemnation. |
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| 9 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 12 | | SECTION 1. Section 23.46, Tax Code, is amended by adding |
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| 11 | 13 | | Subsections (e-1) and (g) to read as follows: |
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| 12 | 14 | | (e-1) A portion of a parcel of land is not diverted to |
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| 13 | 15 | | nonagricultural use for purposes of Subsection (c) because the |
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| 14 | 16 | | portion is subject to a right-of-way that is less than 200 feet wide |
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| 15 | 17 | | and that was taken by condemnation if the remainder of the parcel of |
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| 16 | 18 | | land qualifies for appraisal under this subchapter. |
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| 17 | 19 | | (g) If the additional taxes are due because the land has |
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| 18 | 20 | | been diverted to a nonagricultural use as a result of a |
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| 19 | 21 | | condemnation, the additional taxes and interest imposed by this |
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| 20 | 22 | | section are the personal obligation of the condemning entity and |
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| 21 | 23 | | not the property owner from whom the property was taken. |
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| 22 | 24 | | SECTION 2. (a) Section 23.46(e-1), Tax Code, as added by |
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| 23 | 25 | | this Act, applies only to the appraisal of land for ad valorem tax |
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| 24 | 26 | | purposes for a tax year that begins on or after the effective date |
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| 25 | 27 | | of this Act. |
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| 26 | 28 | | (b) Section 23.46(g), Tax Code, as added by this Act, |
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| 27 | 29 | | applies only to a change of use of land that occurs on or after the |
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| 28 | 30 | | effective date of this Act. |
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| 29 | 31 | | SECTION 3. This Act takes effect September 1, 2021. |
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| 30 | | - | ______________________________ ______________________________ |
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| 31 | | - | President of the Senate Speaker of the House |
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| 32 | | - | I hereby certify that S.B. No. 725 passed the Senate on |
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| 33 | | - | April 14, 2021, by the following vote: Yeas 31, Nays 0. |
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| 34 | | - | ______________________________ |
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| 35 | | - | Secretary of the Senate |
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| 36 | | - | I hereby certify that S.B. No. 725 passed the House on |
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| 37 | | - | May 4, 2021, by the following vote: Yeas 145, Nays 0, two present |
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| 38 | | - | not voting. |
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| 39 | | - | ______________________________ |
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| 40 | | - | Chief Clerk of the House |
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| 41 | | - | Approved: |
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| 42 | | - | ______________________________ |
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| 43 | | - | Date |
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| 44 | | - | ______________________________ |
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| 45 | | - | Governor |
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