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.
Impact
If enacted, HB 289 will have significant implications for landowners and local governments in Texas. Specifically, it will amend existing statutes regarding agricultural land use, which could facilitate easier transitions for landowners switching the use of their properties without facing immediate additional taxation penalties. Such changes may promote agriculture and economic development within rural areas, fostering greater production efficiency amidst changing agricultural practices.
Summary
House Bill 289 seeks to revise the eligibility criteria for land to be appraised for ad valorem tax purposes based on its productivity value. The bill proposes to repeal certain provisions in the state's Tax Code that govern how land is classified and taxed when its use changes or when it is sold. This is primarily intended to encourage agricultural use and agricultural development by refining how farmland is assessed for taxation, potentially reducing tax burdens on farmers and agricultural entities who utilize their land primarily for productive purposes.
Contention
Discussions around the bill are likely to center on the balance between necessary tax revenue for local governments and the need to support agricultural development. Advocates of the bill argue that it allows farmers more flexibility and less financial strain when adapting their land uses in response to evolving economic conditions or environmental challenges. However, opponents may express concerns that repealing these tax regulations could limit local governments' ability to collect taxes effectively, which in turn could affect funding for local services and infrastructure that rely on property tax revenue.
Texas Constitutional Statutes Affected
Tax Code
Chapter 23. Appraisal Methods And Procedures
Section: 20
Section: 42
Section: 51
Section: 52
Section: 524
Section: 551
Chapter 31. Collections
Section: 01
Chapter 41. Local Review
Section: 44
Section: 41
Agriculture Code
Chapter 60. Texas Agricultural Development Districts
Enabling for
Proposing a constitutional amendment repealing the provisions that require that land be devoted to agricultural use for a specified period to be eligible for appraisal for ad valorem tax purposes on the basis of its productivity value and that subject land appraised on that basis 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 eligibility of land for appraisal for ad valorem tax purposes as qualified open-space land on the basis of its use for raising or keeping exotic animals.
Relating to the appraisal for ad valorem tax purposes of certain land on the basis of the land's productivity value when a portion of the land is taken for a right-of-way through an exercise of the power of eminent domain.
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.