| 1 | 2 | | By: Guillen H.B. No. 1244 |
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| 2 | 3 | | |
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| 3 | 4 | | |
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| 4 | 5 | | |
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| 5 | 6 | | |
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| 6 | 7 | | A BILL TO BE ENTITLED |
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| 7 | 8 | | AN ACT |
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| 8 | 9 | | relating to the eligibility of land to continue to be appraised for |
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| 9 | 10 | | ad valorem tax purposes as qualified open-space land following a |
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| 10 | 11 | | transfer to a person who uses the land in materially the same way as |
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| 11 | 12 | | the former owner and to late applications for such appraisal filed |
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| 12 | 13 | | by the new owner of the land. |
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| 13 | 14 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 14 | 15 | | SECTION 1. Section 23.54(e-1), Tax Code, is amended to read |
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| 15 | 16 | | as follows: |
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| 16 | 17 | | (e-1) For purposes of Subsection (e), the ownership of [the] |
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| 17 | 18 | | land that was appraised under this subchapter in the preceding tax |
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| 18 | 19 | | year is not considered to have changed if: |
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| 19 | 20 | | (1) the ownership of the land is transferred from the |
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| 20 | 21 | | former owner to the surviving spouse of the former owner; or |
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| 21 | 22 | | (2) after the ownership of the land is transferred |
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| 22 | 23 | | from the former owner to the new owner: |
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| 23 | 24 | | (A) the new owner uses the land in materially the |
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| 24 | 25 | | same way as the former owner used the land during the preceding tax |
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| 25 | 26 | | year; and |
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| 26 | 27 | | (B) the use described by Paragraph (A) is |
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| 27 | 28 | | overseen or conducted by the same individuals who oversaw or |
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| 28 | 29 | | conducted that use during the preceding tax year. |
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| 29 | 30 | | SECTION 2. Section 23.541, Tax Code, is amended by adding |
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| 30 | 31 | | Subsection (a-2) and amending Subsection (b) to read as follows: |
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| 31 | 32 | | (a-2) Notwithstanding Subsection (a), the chief appraiser |
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| 32 | 33 | | shall accept and approve or deny an application for appraisal under |
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| 33 | 34 | | this subchapter after the deadline for filing the application has |
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| 34 | 35 | | passed if: |
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| 35 | 36 | | (1) the land that is the subject of the application was |
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| 36 | 37 | | appraised under this subchapter in the preceding tax year; |
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| 37 | 38 | | (2) the new owner uses the land in materially the same |
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| 38 | 39 | | way as the former owner used the land during the preceding tax year; |
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| 39 | | - | (3) the use described by Subdivision (2) is overseen |
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| 40 | | - | or conducted by the same individuals who oversaw or conducted that |
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| 41 | | - | use during the preceding tax year; and |
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| 42 | | - | (4) the application is filed not later than the later |
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| 43 | | - | of: |
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| 44 | | - | (A) the delinquency date for the taxes on the |
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| 45 | | - | land for the year for which the application is filed; or |
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| 46 | | - | (B) the first anniversary of the date the |
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| 47 | | - | ownership of the land was transferred from the former owner to the |
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| 48 | | - | new owner. |
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| 40 | + | and |
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| 41 | + | (3) the application is filed not later than the first |
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| 42 | + | anniversary of the date ownership of the land was transferred from |
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| 43 | + | the former owner to the new owner. |
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| 49 | 44 | | (b) If appraisal under this subchapter is approved when the |
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| 50 | 45 | | application is filed late, the owner is liable for a penalty of 10 |
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| 51 | 46 | | percent of the difference between the amount of tax imposed on the |
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| 52 | 47 | | property and the amount that would be imposed if the property were |
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| 53 | 48 | | taxed at market value. The penalty prescribed by this subsection |
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| 54 | 49 | | does not apply to a late application filed under Subsection (a-1) or |
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| 55 | 50 | | (a-2). |
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| 56 | 51 | | SECTION 3. This Act takes effect January 1, 2026. |
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