88R10599 CJC-F
By: Guillen H.B. No. 2397
A BILL TO BE ENTITLED
AN ACT
relating to the eligibility of certain property to continue to
qualify for an ad valorem tax exemption or special appraisal
following certain changes in ownership.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.43, Tax Code, is amended by adding
Subsection (c-1) to read as follows:
(c-1) For purposes of Subsection (c), ownership of the
property is not considered to have changed if ownership of the
property is transferred from the former owner to the surviving
spouse or a surviving child of the former owner.
SECTION 2. Section 23.54, Tax Code, is amended by adding
Subsection (e-1) to read as follows:
(e-1) For purposes of Subsection (e), the ownership of land
that was appraised under this subchapter in the preceding tax year
is not considered to have changed if, after the ownership of the
land is transferred from the former owner to the new owner:
(1) the new owner uses the land in materially the same
way as the former owner used the land during the preceding tax year;
and
(2) the use described by Subdivision (1) is overseen
or conducted by the same individuals who oversaw or conducted that
use during the preceding tax year.
SECTION 3. Section 23.541, Tax Code, is amended by adding
Subsection (a-1) and amending Subsection (b) to read as follows:
(a-1) Notwithstanding Subsection (a), the chief appraiser
shall accept and approve or deny an application for appraisal under
this subchapter after the deadline for filing the application has
passed if:
(1) the land that is the subject of the application was
appraised under this subchapter in the preceding tax year;
(2) the new owner uses the land in materially the same
way as the former owner used the land during the preceding tax year;
and
(3) the application is filed not later than the first
anniversary of the date ownership of the land was transferred from
the former owner to the new owner.
(b) If appraisal under this subchapter is approved when the
application is filed late, the owner is liable for a penalty of 10
percent of the difference between the amount of tax imposed on the
property and the amount that would be imposed if the property were
taxed at market value. The penalty prescribed by this subsection
does not apply to a late application filed under Subsection (a-1).
SECTION 4. This Act takes effect January 1, 2024.