Texas House Bill HB1827

Texas 2025 - 89th Regular

• Filed: 1/13/25

Caption

Relating to the repeal of the additional ad valorem taxes imposed as a result of a change of use of certain land.

Impact

If enacted, HB 1827 would significantly affect property tax laws at the state level, specifically those relating to ad valorem taxes associated with property use changes. The repeal is intended to mitigate financial strains imposed on landowners, facilitating a more favorable economic environment for property development and investment. It may also encourage landowners to utilize their properties more effectively and flexibly without the fear of incurring additional tax liabilities.

Summary

House Bill 1827 proposes the repeal of additional ad valorem taxes that are imposed when there is a change in use of certain lands. This legislation is aimed at alleviating tax burdens on property owners who face increased taxation due to land use alterations. The bill addresses the concerns of landowners, particularly those in agricultural sectors, who might be penalized financially when transforming their land for different uses, whether for personal or business advantages.

Contention

Despite the bill's favorable intentions towards landowners, it might encounter opposition from local government entities that rely on property taxes as a significant revenue source. Critics may argue that repealing these taxes undermines local funding mechanisms, which could lead to budget constraints for public services. Additionally, there may be concerns about the potential for agricultural lands to be significantly altered without some form of tax oversight, potentially impacting land use regulations and environmental protections.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 1. General Provisions
  • Section: 07

• Chapter 23. Appraisal Methods And Procedures
  • Section: 20
  • Section: 52
  • Section: 524
  • Section: 551
  • Section: 73

• Chapter 31. Collections
  • Section: 01

• Chapter 41. Local Review
  • Section: 41
  • Section: 44

Agriculture Code

• Chapter 60. Texas Agricultural Development Districts
  • Section: New Section