| 1 | 1 | | 88R10599 CJC-F |
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| 2 | 2 | | By: Guillen H.B. No. 2397 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the eligibility of certain property to continue to |
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| 8 | 8 | | qualify for an ad valorem tax exemption or special appraisal |
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| 9 | 9 | | following certain changes in ownership. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 11.43, Tax Code, is amended by adding |
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| 12 | 12 | | Subsection (c-1) to read as follows: |
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| 13 | 13 | | (c-1) For purposes of Subsection (c), ownership of the |
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| 14 | 14 | | property is not considered to have changed if ownership of the |
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| 15 | 15 | | property is transferred from the former owner to the surviving |
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| 16 | 16 | | spouse or a surviving child of the former owner. |
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| 17 | 17 | | SECTION 2. Section 23.54, Tax Code, is amended by adding |
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| 18 | 18 | | Subsection (e-1) to read as follows: |
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| 19 | 19 | | (e-1) For purposes of Subsection (e), the ownership of land |
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| 20 | 20 | | that was appraised under this subchapter in the preceding tax year |
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| 21 | 21 | | is not considered to have changed if, after the ownership of the |
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| 22 | 22 | | land is transferred from the former owner to the new owner: |
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| 23 | 23 | | (1) the new owner uses the land in materially the same |
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| 24 | 24 | | way as the former owner used the land during the preceding tax year; |
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| 25 | 25 | | and |
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| 26 | 26 | | (2) the use described by Subdivision (1) is overseen |
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| 27 | 27 | | or conducted by the same individuals who oversaw or conducted that |
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| 28 | 28 | | use during the preceding tax year. |
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| 29 | 29 | | SECTION 3. Section 23.541, Tax Code, is amended by adding |
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| 30 | 30 | | Subsection (a-1) and amending Subsection (b) to read as follows: |
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| 31 | 31 | | (a-1) Notwithstanding Subsection (a), the chief appraiser |
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| 32 | 32 | | shall accept and approve or deny an application for appraisal under |
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| 33 | 33 | | this subchapter after the deadline for filing the application has |
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| 34 | 34 | | passed if: |
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| 35 | 35 | | (1) the land that is the subject of the application was |
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| 36 | 36 | | appraised under this subchapter in the preceding tax year; |
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| 37 | 37 | | (2) the new owner uses the land in materially the same |
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| 38 | 38 | | way as the former owner used the land during the preceding tax year; |
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| 39 | 39 | | and |
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| 40 | 40 | | (3) the application is filed not later than the first |
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| 41 | 41 | | anniversary of the date ownership of the land was transferred from |
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| 42 | 42 | | the former owner to the new owner. |
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| 43 | 43 | | (b) If appraisal under this subchapter is approved when the |
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| 44 | 44 | | application is filed late, the owner is liable for a penalty of 10 |
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| 45 | 45 | | percent of the difference between the amount of tax imposed on the |
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| 46 | 46 | | property and the amount that would be imposed if the property were |
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| 47 | 47 | | taxed at market value. The penalty prescribed by this subsection |
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| 48 | 48 | | does not apply to a late application filed under Subsection (a-1). |
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| 49 | 49 | | SECTION 4. This Act takes effect January 1, 2024. |
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