Texas Senate Bill SJR7

Texas 2021 - 87th 2nd C.S.

Caption

Proposing a constitutional amendment repealing the provision that subjects land designated for agricultural use to an additional tax when the land is diverted to a purpose other than agricultural use or sold.

Impact

If enacted, SJR7 would directly impact taxation laws concerning agricultural land usage in Texas. The repeal of the tax provision is expected to bolster the agricultural sector by reducing financial barriers for farmers looking to innovate or change land use. Furthermore, it could enhance the overall appeal of agricultural investment within Texas, making it easier for landowners to maintain agricultural integrity while also exploring alternative economic opportunities should they choose to diversify. This could ultimately lead to a positive shift in land use across the state, aligning with broader economic development goals.

Summary

SJR7 proposes a constitutional amendment aimed at repealing the provision in the Texas Constitution that imposes an additional tax on land designated for agricultural use when it is diverted to a non-agricultural purpose or sold. This bill seeks to relieve agricultural landowners from financial burdens that arise when their land’s use changes, thereby promoting retention of land for agricultural production and encouraging economic activity related to farming. The proposed change is significant as it addresses the complexities that arise when farmers decide to transition or sell their land for other uses, allowing them to do so without the worry of incurring extra tax penalties.

Contention

Discussions around SJR7 may highlight differing perspectives, particularly between agricultural advocates and those concerned about potential loss of farmland due to changing land uses. Proponents argue that eliminating the additional tax fosters a healthier agricultural economy and provides landowners with greater flexibility. However, opponents may express concerns regarding the potential for decreased agricultural land availability as landowners might be incentivized to sell or develop their land without facing the additional tax previously imposed. Balancing these interests will be crucial as the state considers the future of its agricultural landscape.