Texas House Bill HB99

Texas 2025 - 89th 1st C.S.

• Filed: 7/15/25

Caption

Relating to an exemption from ad valorem taxation of a portion of the appraised value of certain land that is located in a priority groundwater management area and is not irrigated.

Impact

The implementation of HB 99 is expected to have significant effects on local tax revenue structures, particularly in areas heavily reliant on agricultural land that fits the proposed criteria. By reducing the tax burden on non-irrigated landowners, the bill aims to encourage better land use practices within regions designated as priority groundwater management areas. Legislators hope this will stimulate investment in land preservation and sustainable practices while potentially alleviating economic pressures on agricultural producers.

Summary

House Bill 99 aims to provide a financial incentive for landowners in Texas by granting an exemption from ad valorem taxation for a portion of the appraised value of certain non-irrigated lands located within priority groundwater management areas. The specific exemption would allow eligible landowners to exclude 35 percent of the appraised value from taxation, contingent upon meeting certain criteria regarding land use and ownership. This legislative measure is framed within the context of promoting sustainable land management practices and may assist in addressing water conservation efforts in the state.

Contention

Notably, there may be contention surrounding the assessment and administration of this exemption, especially regarding how strictly the definitions of qualifying land are enforced. Critics may argue that it could lead to misuse or a reduction in overall tax contributions from agricultural areas, thereby impacting local funding for schools and public services. Furthermore, as this bill requires voter approval for the accompanying constitutional amendment to take effect, there could be debate and campaigning around its necessity and implications, reflecting broader discussions about water usage and land rights in Texas.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 11. Taxable Property And Exemptions
  • Section: New Section