LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION May 2, 2025 TO: Honorable Paul Bettencourt, Chair, Senate Committee on Local Government FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1244 by Guillen (Relating to the eligibility of land to continue to be appraised for ad valorem tax purposes as qualified open-space land following a transfer to a person who uses the land in materially the same way as the former owner and to late applications for such appraisal filed by the new owner of the land.), As Engrossed No significant fiscal implication to the State is anticipated. The bill would provide that ownership of qualified open-space land would not be considered changed after the land is transferred from the former owner to the new owner if the new owner uses the land in materially the same way as the former owner used the land during the preceding tax year and the use is overseen or conducted by the same individuals who oversaw or conducted the use during the preceding tax year.The bill would require the chief appraiser to accept and approve or deny a late application for qualified open-space land if the land was appraised as qualified open-space land in the previous year, the new owner uses it in materially the same way, and the application is filed not later than the first anniversary of the date of the ownership change. In this specific case, penalties for late filings would not be applicable.Under current law, a change in ownership requires a new owner to file an application to keep the special appraisal provided a change in use of the land has not occurred and the land continues to be eligible. The bill would require a chief appraiser to accept certain late applications without penalty from the new owner. 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, SZ, BRI, KK, SD
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
May 2, 2025
TO: Honorable Paul Bettencourt, Chair, Senate Committee on Local Government FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1244 by Guillen (Relating to the eligibility of land to continue to be appraised for ad valorem tax purposes as qualified open-space land following a transfer to a person who uses the land in materially the same way as the former owner and to late applications for such appraisal filed by the new owner of the land.), As Engrossed
TO: Honorable Paul Bettencourt, Chair, Senate Committee on Local Government
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB1244 by Guillen (Relating to the eligibility of land to continue to be appraised for ad valorem tax purposes as qualified open-space land following a transfer to a person who uses the land in materially the same way as the former owner and to late applications for such appraisal filed by the new owner of the land.), As Engrossed
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
HB1244 by Guillen (Relating to the eligibility of land to continue to be appraised for ad valorem tax purposes as qualified open-space land following a transfer to a person who uses the land in materially the same way as the former owner and to late applications for such appraisal filed by the new owner of the land.), As Engrossed
HB1244 by Guillen (Relating to the eligibility of land to continue to be appraised for ad valorem tax purposes as qualified open-space land following a transfer to a person who uses the land in materially the same way as the former owner and to late applications for such appraisal filed by the new owner of the land.), As Engrossed
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would provide that ownership of qualified open-space land would not be considered changed after the land is transferred from the former owner to the new owner if the new owner uses the land in materially the same way as the former owner used the land during the preceding tax year and the use is overseen or conducted by the same individuals who oversaw or conducted the use during the preceding tax year.The bill would require the chief appraiser to accept and approve or deny a late application for qualified open-space land if the land was appraised as qualified open-space land in the previous year, the new owner uses it in materially the same way, and the application is filed not later than the first anniversary of the date of the ownership change. In this specific case, penalties for late filings would not be applicable.Under current law, a change in ownership requires a new owner to file an application to keep the special appraisal provided a change in use of the land has not occurred and the land continues to be eligible. The bill would require a chief appraiser to accept certain late applications without penalty from the new owner.
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, SZ, BRI, KK, SD
JMc, SZ, BRI, KK, SD