Texas 2025 - 89th Regular

Texas House Bill HB1827 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R5296 DRS-D
2	2	By: Slawson H.B. No. 1827
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the repeal of the additional ad valorem taxes imposed as
10	10	a result of a change of use of certain land.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 1.07(d), Tax Code, is amended to read as
13	13	follows:
14	14	(d) A notice required by Section 11.43(q), 11.45(d),
15	15	23.44(d), 23.46(c) or (f), 23.54(e), 23.541(c), [23.55(e),]
16	16	23.551(a), 23.57(d), [23.76(e),] 23.79(d), or 23.85(d) must be sent
17	17	by certified mail.
18	18	SECTION 2. Section 23.20(g), Tax Code, is amended to read as
19	19	follows:
20	20	(g) A waiver of a special appraisal of property under
21	21	Subchapter C[, D, E, F, or G of this chapter] does not constitute a
22	22	change of use of the property or diversion of the property to
23	23	another use for purposes of the imposition of additional taxes
24	24	under that subchapter [any of those subchapters].
25	25	SECTION 3. Section 23.52(e), Tax Code, is amended to read as
26	26	follows:
27	27	(e) The [For the purposes of Section 23.55 of this code,
28	28	the] chief appraiser [also] shall determine the market value of
29	29	qualified open-space land and shall record both the market value
30	30	and the appraised value in the appraisal records.
31	31	SECTION 4. Section 23.524(e), Tax Code, is amended to read
32	32	as follows:
33	33	(e) Notwithstanding Subsection (b) or (c), the eligibility
34	34	of [For the purposes of this subchapter, a change of use of the]
35	35	land subject to this section for appraisal under this subchapter is
36	36	considered to have ended [occurred] on the day the period
37	37	prescribed by Subsection (c) begins if the owner has not fully
38	38	complied with the terms of the agreement described by Subsection
39	39	(b) on the date the agreement ends.
40	40	SECTION 5. Sections 23.551(a) and (d), Tax Code, are
41	41	amended to read as follows:
42	42	(a) If land appraised as provided by this subchapter is
43	43	owned by an individual 65 years of age or older, before making a
44	44	determination that [a change in use of] the land is no longer
45	45	eligible for appraisal under this subchapter [has occurred], the
46	46	chief appraiser shall deliver a written notice to the owner stating
47	47	that the chief appraiser believes [a change in use of] the land may
48	48	no longer be eligible for appraisal under this subchapter [have
49	49	occurred].
50	50	(d) If the chief appraiser does not receive a response on or
51	51	before the 60th day after the date the notice is mailed, the chief
52	52	appraiser must make a reasonable effort to locate the owner and
53	53	determine whether the land remains eligible to be appraised as
54	54	provided by this subchapter before determining that [a change in
55	55	use of] the land is no longer eligible for appraisal under this
56	56	subchapter [has occurred].
57	57	SECTION 6. Section 23.73(c), Tax Code, is amended to read as
58	58	follows:
59	59	(c) The [For the purposes of Section 23.76 of this code,
60	60	the] chief appraiser [also] shall determine the market value of
61	61	qualified timber land and shall record both the market value and the
62	62	appraised value in the appraisal records.
63	63	SECTION 7. Sections 31.01(c) and (c-1), Tax Code, are
64	64	amended to read as follows:
65	65	(c) The tax bill or a separate statement accompanying the
66	66	tax bill shall:
67	67	(1) identify the property subject to the tax;
68	68	(2) state the appraised value, assessed value, and
69	69	taxable value of the property;
70	70	(3) if the property is land appraised as provided by
71	71	Subchapter C, [D, E, or H,] Chapter 23, state the market value and
72	72	the taxable value for purposes of deferred or additional taxation
73	73	as provided by Section 23.46[, 23.55, 23.76, or 23.9807, as
74	74	applicable];
75	75	(4) if the property is land appraised as provided by
76	76	Subchapter D, E, or H, Chapter 23, state the market value of the
77	77	land;
78	78	(5) state the assessment ratio for the taxing unit;
79	79	(6) [(5)] state the type and amount of any partial
80	80	exemption applicable to the property, indicating whether it applies
81	81	to appraised or assessed value;
82	82	(7) [(6)] state the total tax rate for the taxing
83	83	unit;
84	84	(8) [(7)] state the amount of tax due, the due date,
85	85	and the delinquency date;
86	86	(9) [(8)] explain the payment option and discounts
87	87	provided by Sections 31.03 and 31.05, if available to the taxing
88	88	unit's taxpayers, and state the date on which each of the discount
89	89	periods provided by Section 31.05 concludes, if the discounts are
90	90	available;
91	91	(10) [(9)] state the rates of penalty and interest
92	92	imposed for delinquent payment of the tax;
93	93	(11) [(10)] include the name and telephone number of
94	94	the assessor for the taxing unit and, if different, of the collector
95	95	for the taxing unit;
96	96	(12) [(11)] for real property, state for the current
97	97	tax year and each of the preceding five tax years:
98	98	(A) the appraised value and taxable value of the
99	99	property;
100	100	(B) the total tax rate for the taxing unit;
101	101	(C) the amount of taxes imposed on the property
102	102	by the taxing unit; and
103	103	(D) the difference, expressed as a percent
104	104	increase or decrease, as applicable, in the amount of taxes imposed
105	105	on the property by the taxing unit compared to the amount imposed
106	106	for the preceding tax year; and
107	107	(13) [(12)] for real property, state the differences,
108	108	expressed as a percent increase or decrease, as applicable, in the
109	109	following for the current tax year as compared to the fifth tax year
110	110	before that tax year:
111	111	(A) the appraised value and taxable value of the
112	112	property;
113	113	(B) the total tax rate for the taxing unit; and
114	114	(C) the amount of taxes imposed on the property
115	115	by the taxing unit.
116	116	(c-1) If for any of the preceding six tax years any
117	117	information required by Subsection (c)(12) [(c)(11)] or (13) [(12)]
118	118	to be included in a tax bill or separate statement is unavailable,
119	119	the tax bill or statement must state that the information is not
120	120	available for that year.
121	121	SECTION 8. Section 41.41(a), Tax Code, as effective until
122	122	January 1, 2027, is amended to read as follows:
123	123	(a) A property owner is entitled to protest before the
124	124	appraisal review board the following actions:
125	125	(1) determination of the appraised value of the
126	126	owner's property or, in the case of land appraised as provided by
127	127	Subchapter C, D, E, or H, Chapter 23, determination of its appraised
128	128	or market value;
129	129	(2) unequal appraisal of the owner's property;
130	130	(3) inclusion of the owner's property on the appraisal
131	131	records;
132	132	(4) denial to the property owner in whole or in part of
133	133	a partial exemption;
134	134	(4-a) determination that the owner's property does not
135	135	qualify for the circuit breaker limitation on appraised value
136	136	provided by Section 23.231;
137	137	(5) determination that the owner's land does not
138	138	qualify for appraisal as provided by Subchapter C, D, E, or H,
139	139	Chapter 23;
140	140	(6) identification of the taxing units in which the
141	141	owner's property is taxable in the case of the appraisal district's
142	142	appraisal roll;
143	143	(7) determination that the property owner is the owner
144	144	of property;
145	145	(8) a determination that a change in use of land
146	146	appraised under Subchapter C, [D, E, or H,] Chapter 23, has
147	147	occurred; or
148	148	(9) any other action of the chief appraiser, appraisal
149	149	district, or appraisal review board that applies to and adversely
150	150	affects the property owner.
151	151	SECTION 9. Section 41.41(a), Tax Code, as effective January
152	152	1, 2027, is amended to read as follows:
153	153	(a) A property owner is entitled to protest before the
154	154	appraisal review board the following actions:
155	155	(1) determination of the appraised value of the
156	156	owner's property or, in the case of land appraised as provided by
157	157	Subchapter C, D, E, or H, Chapter 23, determination of its appraised
158	158	or market value;
159	159	(2) unequal appraisal of the owner's property;
160	160	(3) inclusion of the owner's property on the appraisal
161	161	records;
162	162	(4) denial to the property owner in whole or in part of
163	163	a partial exemption;
164	164	(5) determination that the owner's land does not
165	165	qualify for appraisal as provided by Subchapter C, D, E, or H,
166	166	Chapter 23;
167	167	(6) identification of the taxing units in which the
168	168	owner's property is taxable in the case of the appraisal district's
169	169	appraisal roll;
170	170	(7) determination that the property owner is the owner
171	171	of property;
172	172	(8) a determination that a change in use of land
173	173	appraised under Subchapter C, [D, E, or H,] Chapter 23, has
174	174	occurred; or
175	175	(9) any other action of the chief appraiser, appraisal
176	176	district, or appraisal review board that applies to and adversely
177	177	affects the property owner.
178	178	SECTION 10. Section 41.44(a), Tax Code, is amended to read
179	179	as follows:
180	180	(a) Except as provided by Subsections (b), (c), (c-1), and
181	181	(c-2), to be entitled to a hearing and determination of a protest,
182	182	the property owner initiating the protest must file a written
183	183	notice of the protest with the appraisal review board having
184	184	authority to hear the matter protested:
185	185	(1) not later than May 15 or the 30th day after the
186	186	date that notice to the property owner was delivered to the property
187	187	owner as provided by Section 25.19, whichever is later;
188	188	(2) in the case of a protest of a change in the
189	189	appraisal records ordered as provided by Subchapter A of this
190	190	chapter or by Chapter 25, not later than the 30th day after the date
191	191	notice of the change is delivered to the property owner;
192	192	(3) in the case of a determination that a change in the
193	193	use of land appraised under Subchapter C, [D, E, or H,] Chapter 23,
194	194	has occurred, not later than the 30th day after the date the notice
195	195	of the determination is delivered to the property owner;
196	196	(4) in the case of a determination of eligibility for a
197	197	refund under Section 23.1243, not later than the 30th day after the
198	198	date the notice of the determination is delivered to the property
199	199	owner; or
200	200	(5) in the case of a protest of the modification or
201	201	denial of an application for an exemption under Section 11.35, or
202	202	the determination of an appropriate damage assessment rating for an
203	203	item of qualified property under that section, not later than the
204	204	30th day after the date the property owner receives the notice
205	205	required under Section 11.45(e).
206	206	SECTION 11. Section 60.022, Agriculture Code, is amended to
207	207	read as follows:
208	208	Sec. 60.022. CONTENTS OF PETITION. A petition filed under
209	209	Section 60.021 must:
210	210	(1) describe the boundaries of the proposed district
211	211	by metes and bounds or by lot and block number, if there is a
212	212	recorded map or plat and survey of the area;
213	213	(2) include a name for the proposed district, which
214	214	must include the term "Agricultural Development District";
215	215	(3) be signed by the landowners of any land to be
216	216	included within the proposed district and provide an acknowledgment
217	217	consistent with Section 121.001, Civil Practice and Remedies Code,
218	218	that the landowners desire the land to be included in the district;
219	219	(4) include the names of at least five persons who are
220	220	willing and qualified to serve as temporary directors of the
221	221	district;
222	222	(5) name each county in which any agricultural
223	223	facilities to be owned by the district are to be located;
224	224	(6) name each municipality in which any part of the
225	225	district is to be located;
226	226	(7) state the general nature of the proposed
227	227	development and the cost of the development as then estimated by the
228	228	petitioners;
229	229	(8) state the necessity and feasibility of the
230	230	proposed district and whether the district will serve the public
231	231	purpose of furthering agricultural interests;
232	232	(9) include a pledge that the district will make
233	233	payments in lieu of taxes to any school district and county in which
234	234	any real property to be owned by the district is located, in [as
235	235	follows:
236	236	[(A)] annual payments to each entity that are
237	237	equal to the amount of taxes imposed on the real property by the
238	238	entity in the year of the district's creation; and
239	239	[(B) a payment to each entity equal to the amount
240	240	that would be due under Section 23.55, Tax Code, on the district's
241	241	date of creation; and]
242	242	(10) include a pledge that, if the district employs
243	243	more than 50 persons, the district will make payments in lieu of
244	244	taxes to any school district, in addition to those made under
245	245	Subdivision (9), in an amount negotiated between the district and
246	246	the school district.
247	247	SECTION 12. Section 21.0421(e), Property Code, is amended
248	248	to read as follows:
249	249	(e) This section does not:
250	250	(1) authorize groundwater rights appraised separately
251	251	from the real property under this section to be appraised
252	252	separately from real property for property tax appraisal purposes;
253	253	or
254	254	(2) subject real property condemned for the purpose
255	255	described by Subsection (a) to an additional tax as provided by
256	256	Section 23.46 [or 23.55], Tax Code.
257	257	SECTION 13. The following provisions of the Tax Code are
258	258	repealed:
259	259	(1) Section 23.55;
260	260	(2) Sections 23.58(c) and (d);
261	261	(3) Section 23.76;
262	262	(4) Section 23.86;
263	263	(5) Section 23.96; and
264	264	(6) Section 23.9807.
265	265	SECTION 14. The repeal of Sections 23.55, 23.76, 23.86,
266	266	23.96, and 23.9807, Tax Code, by this Act does not affect an
267	267	additional tax imposed as a result of a change of use of land
268	268	appraised under Subchapter D, E, F, G, or H, Chapter 23, Tax Code,
269	269	that occurred before the effective date of this Act, and the former
270	270	law is continued in effect for purposes of that tax.
271	271	SECTION 15. This Act takes effect January 1, 2026.