Texas 2023 - 88th Regular

Texas House Bill HB3857 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	88R3228 TJB-D
2	2	By: Thimesch, Cain, Kitzman H.B. No. 3857
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the eligibility of land for appraisal for ad valorem tax
8	8	purposes as qualified open-space land.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Sections 23.51(1) and (2), Tax Code, are amended
11	11	to read as follows:
12	12	(1) "Qualified open-space land" means land that is
13	13	currently devoted principally to agricultural use to the degree of
14	14	intensity generally accepted in the area and that has been devoted
15	15	principally to agricultural use or to production of timber or
16	16	forest products for five of the preceding seven years or land that
17	17	is used principally as an ecological laboratory by a public or
18	18	private college or university and that has been used principally in
19	19	that manner by a college or university for five of the preceding
20	20	seven years. A chief appraiser shall distinguish between the
21	21	degree of intensity required for various agricultural production
22	22	methods, including organic, sustainable, pastured poultry,
23	23	rotational grazing, and other uncommon production methods or
24	24	systems. Qualified open-space land includes all appurtenances to
25	25	the land. For the purposes of this subdivision, appurtenances to
26	26	the land means private roads, dams, reservoirs, water wells,
27	27	canals, ditches, terraces, and other reshapings of the soil,
28	28	fences, and riparian water rights. Notwithstanding the other
29	29	provisions of this subdivision, land that is currently devoted
30	30	principally to wildlife management as defined by Subdivision (7)(B)
31	31	or (C) to the degree of intensity generally accepted in the area
32	32	qualifies for appraisal as qualified open-space land under this
33	33	subchapter regardless of the manner in which the land was used in
34	34	any preceding year.
35	35	(2) "Agricultural use" includes but is not limited to
36	36	the following activities: cultivating the soil, producing crops
37	37	for human food, animal feed, or planting seed or for the production
38	38	of fibers; producing fruits and vegetables; floriculture,
39	39	viticulture, and horticulture; raising or keeping livestock;
40	40	raising or keeping exotic animals for the production of human food
41	41	or of fiber, leather, pelts, or other tangible products having a
42	42	commercial value; planting cover crops or leaving land idle for the
43	43	purpose of participating in a governmental program, provided the
44	44	land is not used for residential purposes or a purpose inconsistent
45	45	with agricultural use; and planting cover crops or leaving land
46	46	idle in conjunction with normal crop or livestock rotation
47	47	procedure. The term also includes the use of land to produce or
48	48	harvest logs and posts for the use in constructing or repairing
49	49	fences, pens, barns, or other agricultural improvements on adjacent
50	50	qualified open-space land having the same owner and devoted to a
51	51	different agricultural use. The term also includes the use of land
52	52	for wildlife management. The term also includes the use of land to
53	53	raise or keep bees for pollination or for the production of human
54	54	food or other tangible products having a commercial value, provided
55	55	that the land used is not less than 5 or more than 20 acres.
56	56	SECTION 2. Subchapter D, Chapter 23, Tax Code, is amended by
57	57	adding Section 23.5215 to read as follows:
58	58	Sec. 23.5215. GUIDELINES FOR UNCOMMON AGRICULTURAL USES.
59	59	(a) The comptroller, in consultation with the Texas A&M AgriLife
60	60	Extension Service, individuals selected by the comptroller who
61	61	represent appraisal districts, and individuals selected by the
62	62	comptroller who represent affected producers, shall develop
63	63	guidelines for determining under what conditions the cumulative
64	64	effect of multiple agricultural uses of a tract of land meets the
65	65	degree of intensity generally accepted in the area.
66	66	(b) The comptroller, in consultation with the Texas A&M
67	67	AgriLife Extension Service, individuals selected by the
68	68	comptroller who represent appraisal districts, and individuals
69	69	selected by the comptroller who represent small-scale producers,
70	70	shall develop guidelines for determining under what conditions land
71	71	under 10 acres in size used for the production of fruits,
72	72	vegetables, poultry, hogs, sheep, or goats qualifies for appraisal
73	73	under this subchapter. The guidelines must provide that land under
74	74	10 acres in size that qualifies for appraisal under this subchapter
75	75	solely on the basis of the guidelines developed under this section
76	76	may not subsequently qualify under Section 23.51(7) for appraisal
77	77	under this subchapter if the owner changes the use of the land to
78	78	wildlife management.
79	79	(c) The guidelines developed under this section may include
80	80	recordkeeping requirements consistent with normal practices of
81	81	agricultural operations.
82	82	(d) The comptroller in developing guidelines under this
83	83	section may consider the following factors:
84	84	(1) the financial investment of a producer in an
85	85	agricultural use of a tract of land;
86	86	(2) the degree of active management of a producer in
87	87	the agricultural use of a tract of land;
88	88	(3) the percentage of a tract of land used by a
89	89	producer for agricultural uses; and
90	90	(4) any other factor the comptroller considers
91	91	appropriate.
92	92	(e) The comptroller, in cooperation with appraisal
93	93	districts, shall provide educational resources to chief appraisers
94	94	to assist with the appraisal of land using the guidelines developed
95	95	under this section and of land using an uncommon production method,
96	96	such as organic production, sustainable production, and pastured
97	97	poultry.
98	98	SECTION 3. Not later than September 1, 2024, the
99	99	comptroller shall distribute the guidelines required by Section
100	100	23.5215, Tax Code, as added by this Act, to each appraisal district.
101	101	SECTION 4. This Act applies only to the appraisal of land
102	102	for ad valorem tax purposes for a tax year that begins on or after
103	103	January 1, 2025.
104	104	SECTION 5. This Act takes effect September 1, 2023.