Texas 2025 - 89th Regular

Texas House Bill HB4004 Compare Versions

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

Old	New	Differences
1	1	89R8321 RDS-D
2	2	By: Money H.B. No. 4004
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5	5
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the eligibility of property for certain ad valorem tax
10	10	incentives if a wind-powered energy device or a solar energy device
11	11	has been installed or constructed on the property.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Section 11.43(c), Tax Code, is amended to read as
14	14	follows:
15	15	(c) An exemption provided by Section 11.13, 11.131, 11.132,
16	16	11.133, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19,
17	17	11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), 11.231,
18	18	11.254, [11.27,] 11.271, 11.29, 11.30, 11.31, 11.315, 11.35, or
19	19	11.36, once allowed, need not be claimed in subsequent years, and
20	20	except as otherwise provided by Subsection (e), the exemption
21	21	applies to the property until it changes ownership or the person's
22	22	qualification for the exemption changes. However, except as
23	23	provided by Subsection (r), the chief appraiser may require a
24	24	person allowed one of the exemptions in a prior year to file a new
25	25	application to confirm the person's current qualification for the
26	26	exemption by delivering a written notice that a new application is
27	27	required, accompanied by an appropriate application form, to the
28	28	person previously allowed the exemption. If the person previously
29	29	allowed the exemption is 65 years of age or older, the chief
30	30	appraiser may not cancel the exemption due to the person's failure
31	31	to file the new application unless the chief appraiser complies
32	32	with the requirements of Subsection (q), if applicable.
33	33	SECTION 2. Section 23.42, Tax Code, is amended by adding
34	34	Subsection (a-1) to read as follows:
35	35	(a-1) Notwithstanding Subsection (a), land on which a
36	36	wind-powered energy device as defined by Section 23.51 is located
37	37	may not be designated for agricultural use under this section.
38	38	SECTION 3. Section 23.51, Tax Code, is amended by adding
39	39	Subdivision (9) to read as follows:
40	40	(9) "Wind-powered energy device" means an apparatus
41	41	designed or adapted to:
42	42	(A) convert the energy available in the wind into
43	43	thermal, mechanical, or electrical energy;
44	44	(B) store the converted energy described by
45	45	Paragraph (A), either in the form to which originally converted or
46	46	another form; or
47	47	(C) distribute the converted energy described by
48	48	Paragraph (A).
49	49	SECTION 4. Section 23.56, Tax Code, is amended to read as
50	50	follows:
51	51	Sec. 23.56. LAND INELIGIBLE FOR APPRAISAL AS OPEN-SPACE
52	52	LAND. Land is not eligible for appraisal as provided by this
53	53	subchapter if:
54	54	(1) the land is located inside the corporate limits of
55	55	an incorporated city or town, unless:
56	56	(A) the city or town is not providing the land
57	57	with governmental and proprietary services substantially
58	58	equivalent in standard and scope to those services it provides in
59	59	other parts of the city or town with similar topography, land
60	60	utilization, and population density;
61	61	(B) the land has been devoted principally to
62	62	agricultural use continuously for the preceding five years; or
63	63	(C) the land:
64	64	(i) has been devoted principally to
65	65	agricultural use or to production of timber or forest products
66	66	continuously for the preceding five years; and
67	67	(ii) is used for wildlife management;
68	68	(2) the land is owned by an individual who is a
69	69	nonresident alien or by a foreign government if that individual or
70	70	government is required by federal law or by rule adopted pursuant to
71	71	federal law to register his ownership or acquisition of that
72	72	property; [or]
73	73	(3) the land is owned by a corporation, partnership,
74	74	trust, or other legal entity if the entity is required by federal
75	75	law or by rule adopted pursuant to federal law to register its
76	76	ownership or acquisition of that land and a nonresident alien or a
77	77	foreign government or any combination of nonresident aliens and
78	78	foreign governments own a majority interest in the entity; or
79	79	(4) a wind-powered energy device is located on the
80	80	land.
81	81	SECTION 5. Section 312.0021(a)(2), Tax Code, is amended to
82	82	read as follows:
83	83	(2) "Wind-powered energy device" has the meaning
84	84	assigned by Section 23.51 [11.27].
85	85	SECTION 6. Subchapter A, Chapter 312, Tax Code, is amended
86	86	by adding Section 312.0022 to read as follows:
87	87	Sec. 312.0022. PROHIBITION ON ABATEMENT OF TAXES ON CERTAIN
88	88	PROPERTY INCLUDING A WIND-POWERED ENERGY DEVICE. (a) In this
89	89	section, "wind-powered energy device" has the meaning assigned by
90	90	Section 23.51.
91	91	(b) The governing body of a taxing unit may not enter into an
92	92	agreement under this chapter to exempt from taxation a portion of
93	93	the value of real property on which a wind-powered energy device is
94	94	located or is planned to be located during the term of the
95	95	agreement, or of tangible personal property that is located or is
96	96	planned to be located on the real property during that term.
97	97	SECTION 7. Sections 11.27 and 23.26, Tax Code, are
98	98	repealed.
99	99	SECTION 8. The repeal by this Act of Sections 11.27 and
100	100	23.26, Tax Code, and the changes in law made by this Act to Sections
101	101	11.43, 23.42, 23.56, and 312.0021(a)(2), Tax Code, apply only to an
102	102	ad valorem tax year that begins on or after the effective date of
103	103	this Act.
104	104	SECTION 9. Section 312.0022, Tax Code, as added by this Act,
105	105	applies only to an agreement entered into under Chapter 312, Tax
106	106	Code, on or after the effective date of this Act.
107	107	SECTION 10. It is the intent of the 89th Legislature,
108	108	Regular Session, 2025, that the amendments made by this Act to
109	109	Section 11.43(c), Tax Code, be harmonized with another Act of the
110	110	89th Legislature, Regular Session, 2025, relating to
111	111	nonsubstantive additions to and corrections in enacted codes.
112	112	SECTION 11. (a) Except as provided by Subsection (b) of this
113	113	section, this Act takes effect January 1, 2026.
114	114	(b) Section 2 of this Act takes effect January 1, 2026, but
115	115	only if the constitutional amendment proposed by the 89th
116	116	Legislature, Regular Session, 2025, to prohibit land from being
117	117	appraised for ad valorem tax purposes only on the basis of its
118	118	agricultural use if a wind-powered energy device has been installed
119	119	or constructed on the land is approved by the voters. If that
120	120	amendment is not approved by the voters, Section 2 of this Act has
121	121	no effect.