Texas 2023 - 88th Regular

Texas House Bill HB260 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	H.B. No. 260
2	2
3	3
4	4	AN ACT
5	5	relating to the calculation of net to land in the appraisal of
6	6	open-space land for ad valorem tax purposes.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Section 23.51(4), Tax Code, is amended to read as
9	9	follows:
10	10	(4) "Net to land" means the average annual net income
11	11	derived from the use of open-space land that would have been earned
12	12	from the land during the five-year period preceding the year before
13	13	the appraisal by an owner using ordinary prudence in the management
14	14	of the land and the farm crops or livestock produced or supported on
15	15	the land and, in addition, any income received from hunting or
16	16	recreational leases. The chief appraiser shall calculate net to
17	17	land by considering the income that would be due to the owner of the
18	18	land under cash lease, share lease, or whatever lease arrangement
19	19	is typical in that area for that category of land, and all expenses
20	20	directly attributable to the agricultural use of the land by the
21	21	owner shall be subtracted from this owner income and the results
22	22	shall be used in income capitalization. In calculating net to land,
23	23	a reasonable deduction shall be made for any depletion that occurs
24	24	of underground water used in the agricultural operation. In this
25	25	subdivision, "wildlife or livestock disease or pest area" means an
26	26	area designated by a state agency as an area in which a disease or
27	27	pest that affects wildlife or livestock exists or may exist,
28	28	including a chronic wasting disease containment or surveillance
29	29	zone and an area subject to a quarantine authorized by Subtitle C,
30	30	Title 6, Agriculture Code. In calculating net to land of open-space
31	31	land located in or adjacent to a wildlife or livestock disease or
32	32	pest area, the chief appraiser shall take into consideration the
33	33	effect that the presence of the applicable disease or pest or the
34	34	designation of the area has on the net income from the land. For
35	35	land that qualifies under Subdivision (7) for appraisal under this
36	36	subchapter, the chief appraiser may not consider in the calculation
37	37	of net to land the income that would be due to the owner under a
38	38	hunting or recreational lease of the land.
39	39	SECTION 2. The change in law made by this Act applies only
40	40	to the appraisal of open-space land for a tax year that begins on or
41	41	after the effective date of this Act.
42	42	SECTION 3. This Act takes effect January 1, 2024.
43	43	______________________________ ______________________________
44	44	President of the Senate Speaker of the House
45	45	I certify that H.B. No. 260 was passed by the House on April
46	46	14, 2023, by the following vote: Yeas 140, Nays 3, 2 present, not
47	47	voting.
48	48	______________________________
49	49	Chief Clerk of the House
50	50	I certify that H.B. No. 260 was passed by the Senate on May
51	51	16, 2023, by the following vote: Yeas 31, Nays 0.
52	52	______________________________
53	53	Secretary of the Senate
54	54	APPROVED: _____________________
55	55	Date
56	56	_____________________
57	57	Governor