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
If enacted, HB449 would significantly impact state taxation laws regarding agricultural land and property taxation in Texas. It seeks to simplify the tax code by removing specific tax provisions that complicate the process for landowners. Advocates argue that removing these taxes will encourage better land use management and foster development without the fear of punitive tax repercussions, particularly during transitions of land that is typically appraised under several subchapters of the Tax Code.
Summary
House Bill 449 aims to repeal the additional ad valorem taxes that are imposed as a consequence of the sale or change of use of certain land in Texas. This bill specifically targets taxation rules that affect agricultural land when it undergoes a transformation in its use or ownership. By eliminating these additional tax burdens, the intention is to ease financial pressures on landowners, particularly those engaged in agricultural activities, thereby promoting stability within the agricultural sector.
Sentiment
The sentiment surrounding HB449 appears to be generally positive among agricultural and property owner groups who view the repeal as a much-needed relief. Proponents argue that the existing tax framework can deter landowners from selling or repurposing their land due to potential financial penalties. However, concerns have been raised about the implications of such a repeal on local government revenues, which may rely on these property taxes to fund essential services.
Contention
The notable points of contention include concerns that repealing these taxes may reduce local government's ability to maintain public services. Critics of the bill argue that if local governments lose substantial tax revenue from property taxes, it could lead to budget cuts in vital areas that affect community welfare. Additionally, there might be discussions regarding the fairness and equity of tax burdens placed on landowners versus those on urban developers, which could become a focal point of legislative debate.
Enabling for
Proposing a constitutional amendment repealing the provision that subjects land designated for agricultural use to an additional tax when the land is diverted to a purpose other than agricultural use or sold.
TX HJR28
Enabling for
Proposing a constitutional amendment repealing the provision that subjects land designated for agricultural use to an additional tax when the land is diverted to a purpose other than agricultural use or sold.
Relating to the eligibility of certain land for appraisal for ad valorem tax purposes on the basis of its productivity value and the consequences for those purposes of a change of use or sale of the land.
Relating to the repeal of the additional ad valorem taxes imposed as a result of the sale or change in the use of land appraised as agricultural or open-space land.
Relating to the repeal of the additional ad valorem taxes imposed as a result of certain changes in the use of agricultural land, open-space land, and timber land.