89R8321 RDS-D
By: Money H.B. No. 4004
A BILL TO BE ENTITLED
AN ACT
relating to the eligibility of property for certain ad valorem tax
incentives if a wind-powered energy device or a solar energy device
has been installed or constructed on the property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.43(c), Tax Code, is amended to read as
follows:
(c) An exemption provided by Section 11.13, 11.131, 11.132,
11.133, 11.134, 11.17, 11.18, 11.182, 11.1827, 11.183, 11.19,
11.20, 11.21, 11.22, 11.23(a), (h), (j), (j-1), or (m), 11.231,
11.254, [11.27,] 11.271, 11.29, 11.30, 11.31, 11.315, 11.35, or
11.36, once allowed, need not be claimed in subsequent years, and
except as otherwise provided by Subsection (e), the exemption
applies to the property until it changes ownership or the person's
qualification for the exemption changes. However, except as
provided by Subsection (r), the chief appraiser may require a
person allowed one of the exemptions in a prior year to file a new
application to confirm the person's current qualification for the
exemption by delivering a written notice that a new application is
required, accompanied by an appropriate application form, to the
person previously allowed the exemption. If the person previously
allowed the exemption is 65 years of age or older, the chief
appraiser may not cancel the exemption due to the person's failure
to file the new application unless the chief appraiser complies
with the requirements of Subsection (q), if applicable.
SECTION 2. Section 23.42, Tax Code, is amended by adding
Subsection (a-1) to read as follows:
(a-1) Notwithstanding Subsection (a), land on which a
wind-powered energy device as defined by Section 23.51 is located
may not be designated for agricultural use under this section.
SECTION 3. Section 23.51, Tax Code, is amended by adding
Subdivision (9) to read as follows:
(9) "Wind-powered energy device" means an apparatus
designed or adapted to:
(A) convert the energy available in the wind into
thermal, mechanical, or electrical energy;
(B) store the converted energy described by
Paragraph (A), either in the form to which originally converted or
another form; or
(C) distribute the converted energy described by
Paragraph (A).
SECTION 4. Section 23.56, Tax Code, is amended to read as
follows:
Sec. 23.56. LAND INELIGIBLE FOR APPRAISAL AS OPEN-SPACE
LAND. Land is not eligible for appraisal as provided by this
subchapter if:
(1) the land is located inside the corporate limits of
an incorporated city or town, unless:
(A) the city or town is not providing the land
with governmental and proprietary services substantially
equivalent in standard and scope to those services it provides in
other parts of the city or town with similar topography, land
utilization, and population density;
(B) the land has been devoted principally to
agricultural use continuously for the preceding five years; or
(C) the land:
(i) has been devoted principally to
agricultural use or to production of timber or forest products
continuously for the preceding five years; and
(ii) is used for wildlife management;
(2) the land is owned by an individual who is a
nonresident alien or by a foreign government if that individual or
government is required by federal law or by rule adopted pursuant to
federal law to register his ownership or acquisition of that
property; [or]
(3) the land is owned by a corporation, partnership,
trust, or other legal entity if the entity is required by federal
law or by rule adopted pursuant to federal law to register its
ownership or acquisition of that land and a nonresident alien or a
foreign government or any combination of nonresident aliens and
foreign governments own a majority interest in the entity; or
(4) a wind-powered energy device is located on the
land.
SECTION 5. Section 312.0021(a)(2), Tax Code, is amended to
read as follows:
(2) "Wind-powered energy device" has the meaning
assigned by Section 23.51 [11.27].
SECTION 6. Subchapter A, Chapter 312, Tax Code, is amended
by adding Section 312.0022 to read as follows:
Sec. 312.0022. PROHIBITION ON ABATEMENT OF TAXES ON CERTAIN
PROPERTY INCLUDING A WIND-POWERED ENERGY DEVICE. (a) In this
section, "wind-powered energy device" has the meaning assigned by
Section 23.51.
(b) The governing body of a taxing unit may not enter into an
agreement under this chapter to exempt from taxation a portion of
the value of real property on which a wind-powered energy device is
located or is planned to be located during the term of the
agreement, or of tangible personal property that is located or is
planned to be located on the real property during that term.
SECTION 7. Sections 11.27 and 23.26, Tax Code, are
repealed.
SECTION 8. The repeal by this Act of Sections 11.27 and
23.26, Tax Code, and the changes in law made by this Act to Sections
11.43, 23.42, 23.56, and 312.0021(a)(2), Tax Code, apply only to an
ad valorem tax year that begins on or after the effective date of
this Act.
SECTION 9. Section 312.0022, Tax Code, as added by this Act,
applies only to an agreement entered into under Chapter 312, Tax
Code, on or after the effective date of this Act.
SECTION 10. It is the intent of the 89th Legislature,
Regular Session, 2025, that the amendments made by this Act to
Section 11.43(c), Tax Code, be harmonized with another Act of the
89th Legislature, Regular Session, 2025, relating to
nonsubstantive additions to and corrections in enacted codes.
SECTION 11. (a) Except as provided by Subsection (b) of this
section, this Act takes effect January 1, 2026.
(b) Section 2 of this Act takes effect January 1, 2026, but
only if the constitutional amendment proposed by the 89th
Legislature, Regular Session, 2025, to prohibit land from being
appraised for ad valorem tax purposes only on the basis of its
agricultural use if a wind-powered energy device has been installed
or constructed on the land is approved by the voters. If that
amendment is not approved by the voters, Section 2 of this Act has
no effect.