LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION March 26, 2023 TO: Honorable Paul Bettencourt, Chair, Senate Committee on Local Government FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1191 by Zaffirini (Relating to late applications for the appraisal of land for ad valorem tax purposes as qualified open-space land following the death of the owner of the land.), As Introduced No significant fiscal implication to the State is anticipated. The bill would amend Chapter 23 of the Tax Code, relating to Appraisal Methods and Procedures. The bill would provide that the chief appraiser accept and approve or deny an application after the deadline for filing has passed if the land was appraised as open-space land in the preceding year; previous owner of the land died during the preceding year; and the application is filed prior to the taxes becoming delinquent by the surviving spouse or surviving child, executor of the related estate, or a fiduciary acting on their behalf. The bill would exempt such a late application from the penalty for a late filed application. Qualified open-space land is appraised according to its productivity value, which results in an appraised value that is significantly less than the market value. Under current law, a change in ownership requires a new owner to file an application to keep the special appraisal as long as a change in use of the land has not occurred and continues to be eligible. The bill would require a chief appraiser to accept a late application without penalty from a surviving spouse or surviving child, executor of the estate, or a fiduciary acting on their behalf. Accepting a late application without penalty would be a cost to local taxing units; however, it is not expected to be significant. Local Government ImpactAccepting a late application without penalty would be a cost to local taxing units; however, it is not expected to be significant. Source Agencies: b > td > 304 Comptroller of Public Accounts LBB Staff: b > td > JMc, AF, SD, BRI, KK
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION
March 26, 2023
TO: Honorable Paul Bettencourt, Chair, Senate Committee on Local Government FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1191 by Zaffirini (Relating to late applications for the appraisal of land for ad valorem tax purposes as qualified open-space land following the death of the owner of the land.), As Introduced
TO: Honorable Paul Bettencourt, Chair, Senate Committee on Local Government
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB1191 by Zaffirini (Relating to late applications for the appraisal of land for ad valorem tax purposes as qualified open-space land following the death of the owner of the land.), As Introduced
Honorable Paul Bettencourt, Chair, Senate Committee on Local Government
Honorable Paul Bettencourt, Chair, Senate Committee on Local Government
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB1191 by Zaffirini (Relating to late applications for the appraisal of land for ad valorem tax purposes as qualified open-space land following the death of the owner of the land.), As Introduced
SB1191 by Zaffirini (Relating to late applications for the appraisal of land for ad valorem tax purposes as qualified open-space land following the death of the owner of the land.), As Introduced
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would amend Chapter 23 of the Tax Code, relating to Appraisal Methods and Procedures. The bill would provide that the chief appraiser accept and approve or deny an application after the deadline for filing has passed if the land was appraised as open-space land in the preceding year; previous owner of the land died during the preceding year; and the application is filed prior to the taxes becoming delinquent by the surviving spouse or surviving child, executor of the related estate, or a fiduciary acting on their behalf. The bill would exempt such a late application from the penalty for a late filed application. Qualified open-space land is appraised according to its productivity value, which results in an appraised value that is significantly less than the market value. Under current law, a change in ownership requires a new owner to file an application to keep the special appraisal as long as a change in use of the land has not occurred and continues to be eligible. The bill would require a chief appraiser to accept a late application without penalty from a surviving spouse or surviving child, executor of the estate, or a fiduciary acting on their behalf. Accepting a late application without penalty would be a cost to local taxing units; however, it is not expected to be significant.
Local Government Impact
Accepting a late application without penalty would be a cost to local taxing units; however, it is not expected to be significant.
Source Agencies: b > td > 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: b > td > JMc, AF, SD, BRI, KK
JMc, AF, SD, BRI, KK