Texas Senate Bill SB25

Texas 2021 - 87th 3rd C.S.

Caption

Relating to the repeal of the additional ad valorem taxes imposed as a result of a sale or change of use of certain land.

Impact

The bill is projected to have significant implications for landowners in Texas, particularly older individuals who own agricultural or special appraisal lands. By eliminating the additional taxes associated with changing the use or selling these lands, the bill aims to promote more freedom and flexibility in land management and use. Furthermore, it seeks to support the agricultural sector by alleviating tax burdens that could deter land use changes necessary for economic viability or property development.

Summary

Senate Bill 25 seeks to repeal certain additional ad valorem taxes that are imposed due to the sale or change of use of specific types of land. The primary legislation focuses on the repeal of additional tax provisions contained in the Texas Tax Code, specifically Sections 23.46, 23.55, 23.76, and related provisions. The bill is designed to simplify the tax implications for landowners who may have faced additional taxation when they sold or re-purposed their property, particularly agricultural land.

Contention

However, some points of contention surrounding SB25 arise from concerns that repealing these additional tax provisions could reduce local tax revenues that are dependent on land transactions. Opponents of the bill may argue that this could hinder local governments' ability to finance essential services. Moreover, the bill's effectiveness may rely on a constitutional amendment that is under consideration, which could complicate its implementation and necessitate further public approval.