Relating to the eligibility of certain land for appraisal for ad valorem tax purposes on the basis of its productivity value and the consequences for those purposes of a change of use or sale of the land.
Impact
The legislation is poised to repeal certain provisions that have previously dictated the eligibility criteria for tax appraisal of agricultural properties. Significantly, the bill changes how land is treated if its use ceases to align with agricultural purposes, potentially affecting how quickly landowners will transition their use or sale of the land without incurring additional tax penalties. This could lead to a more favorable tax environment for landowners who engage in agricultural activities or wildlife management practices, thereby promoting these uses over non-productive land uses.
Summary
House Bill 4959 addresses the eligibility of certain land for appraisal for ad valorem tax purposes based on its productivity value and outlines the consequences of changes in the use or sale of the land. This bill seeks to amend various sections within the Tax Code that relate to property taxes, particularly for land designated for agricultural use. By modifying the criteria and processes for appraising land, the bill aims to clarify how property tax assessments should be conducted for land used in agricultural and wildlife management settings.
Contention
Debates surrounding HB 4959 may arise particularly around the implications of its changes to the existing tax structures. Critics may argue that by streamlining the appraisal process and rewarding particular land use, the bill could unintentionally encourage land speculation or misuse of designated agricultural lands. Proponents, however, are likely to highlight the benefits of reducing bureaucratic obstacles for farmers and land managers who seek to maximize the utility of their land. The discussions may center on balancing effective land utilization with the economic incentives tied to property taxation.
Texas Constitutional Statutes Affected
Tax Code
Chapter 23. Appraisal Methods And Procedures
Section: 551
Section: 52
Section: 524
Section: 20
Property Code
Chapter 21. Eminent Domain
Section: 0421
Agriculture Code
Chapter 60. Texas Agricultural Development Districts
Enabling for
Proposing a constitutional amendment repealing the provisions that require that land be devoted to agricultural use for a specified period to be eligible for appraisal for ad valorem tax purposes on the basis of its productivity value and that subject land appraised on that basis to an additional tax when the land is diverted to a purpose other than agricultural use or sold.
Relating to the repeal of the additional ad valorem taxes imposed as a result of the sale or change in the use of land appraised as agricultural or open-space land.
Relating to the repeal of the additional ad valorem taxes imposed as a result of certain changes in the use of agricultural land, open-space land, and timber land.